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Triss [41]
2 years ago
6

In November 2008, the Reserve Bank of India (RBI) lowered its "repo" rate, the rate at which it lends to banks, from 8 percent t

o 7.5 percent. Only two weeks earlier, it had lowered the rate from 9 percent to 8 percent.The Economist, 11/6/2008The Reserve Bank of India is lowering its rates to fightinflation.recession.a decrease in money demand.rising net exports.
Business
1 answer:
Elan Coil [88]2 years ago
7 0

Answer:

The correct answer to the following question is option B) Recession.

Explanation:

The reserve bank of India ( RBI ) has been lowering its repo rate ( which is the rate at which it lends to banks ) to counter the problem of recession in the economy. The aim here is to apply the expansionary monetary policy, in which the money supply in the economy would be increased by cutting down the interest rate, which will lead to decrease in cost of borrowing and increase in investment . The government would also increase its spending.

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What are some of the advantages and disadvantages of choosing a federally insured account.? help​
Wewaii [24]

the advantages of the federally insured account is that

- it's generally safer because it's protected by the Insurance made by the federal government, In case the account is stolen, the government would return the amount,

- It's easier to make joint account if you're married.

The disadvantages is that:

- The interest of a federally insured account usually below the inflation rate. So technically the value of your account would reduced over time.

- it has a maximum amount of $ 250,000. You can put more to the account.

5 0
2 years ago
Hettenhouse Company's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. If the company
solniwko [45]

Answer:

The company's cost of preferred stock for use in calculating the WACC is 9.65%

Explanation:

For computing the cost of preferred stock, the following formula should be used which is shown below

= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)

where,

Flotation cost = 1- rate

                      = 1- 4% = 0.96

= $9.50 ÷ ($102.50 × 0.96)

= $9.50 ÷ $98.4

= 9.65%

The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.

Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%

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