Answer:
The correct answer is letter "D": company that specializes in making replacement tiles for the space shuttle.
Explanation:
Market-dependent industries are those whose production relies on the manufacturing of another institution. This is a threat for the entity since if the other producers fail, the entity is likely to follow the same path. The situation is even worse when the manufacturing company produces rare or uncommon goods.
Therefore, <em>a firm producing replacement tiles for space shuttles is highly market-dependent since a few organizations worldwide require spare parts for space tiles, which is not a common product traded in the market.</em>
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
Answer: Communication Decency Act
Explanation:
Communication Decency Act was passed in 1996, it's an act that safe guards minors(children, under aged) from getting access to sexual materials from the internet. These is where some control against some channels at home are restricted and offices or firms use it for protection or prevention of workers from some web pages while working.
Answer:
The spread between yields on long-term and short-term bonds is positive
Explanation:
When term premiums are positive, the yield curve is considered normal, this means that long-term bonds have a higher yield to maturity than short-term bonds, due to the higher risks associated with long-term bonds.
If long-term bonds have a higher yield to maturity (YTM) than short-term bonds, this means that the spread: the difference between the term premiums of long-term bonds and short-term bonds, will be positive.
For example, if the YTM of a 10 year bond is 8%, and the YTM of a 1 year bond is 4%, the spread of of the term premiums will:
8 - 4 = 4%, a positive spread.
Answer:
$18.33
Explanation:
The company just paid an annual dividend of $2.24
The dividend increase by 2.3% annually
= 2.3/100
= 0.023
The required return is 14.8%
= 14.8/100
= 0.148
Therefore the price that will be paid for one share of LBM stock can be calculated as follows
= 2.24 × (1+0.023)/(0.148-0.023)
= 2.24 × 1.023/0.125
= 2.29153/0.125
= $18.33
Hence $18.33 will be paid for one share of LBM stock
