Suppose the population of Area Y is relatively young, and the population of Area O is relativelyold, but everything else about the two areas is the same.a. Would interest rates likely be the same or different in the two areas? Explain.b. Would a trend toward nationwide branching by banks and the development of nationwidediversified financial corporations affect your answer to part a? Explain.
Suppose the population of Area Y is relatively young, and the population of Area O is relatively
old, but everything else about the two areas is the same.
a. Would interest rates likely be the same or different in the two areas? Explain.
b. Would a trend toward nationwide branching by banks and the development of nationwide
diversified financial corporations affect your answer to part a? Explain.
Expert Answer
Want to see the step-by-step answer?
Other
Related Finance Q&A
Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball...
A: Formulas: In years 0 cash flow is after tax adjustment for depreciation of initial cost and After ...
Q: I need help with questions 1-4
A: Current EPS = Net Income / Number of Common Shares Outstanding Current EPS = $ 9,250,000 / 5,500,000...
Q: How would each of the following changes tend to affect aggregate payoutratios (that is, the average ...
A: The dividend payout ratio is the ratio of paying dividends to the shareholders from the net income...
Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of...
A: Saving Account is a type of financial service offered to general public by banks with limited withdr...
Q: The diagram below is a diagram of the Users of Funds <----> Underwriter <-----> ...
A: Secondary Market is the place where securities are bought and sold which are already listed. Primary...
Q: A company has an EPS of $2.85, a book value per share of $27.93, and a market/book ratio of 2.8x. Wh...
A: SOLUTION:- P/E Ratio = Market Value per share/ EPS (Earnings Per Share) Given EPS = $2.85 Market/...
Q: 1. Basic concepts A. Finance, or financial management, requires the knowledge and precise use o...
A: Discounting – it’s a process of determining the present value of a series of payments which are supp...
Q: One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who ha...
A: Click to see the answer
Q: I need assistance with questions 1-5
A: Pellegrini Southern Corporation: 1. Current ratio = Current assets / Current liabilities Current rat...
Q: Consider three bonds with 8% coupon rates, all making annual coupon payments and all selling at face...
A: This question have more than 3 sub parts, solution for first 3 parts will be provided. If you want a...
Q: The following table shows the average life expectancies in several countries. Assume that all premiu...
A: The formula used is:
Q: You plan to spend a semester abroad in France. You will live in France for 8 months starting 12 mont...
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two type...
Q: what are the tools the Federal Reserve uses to control monetary policies. Expand on how the Federal...
A: Monetary policy is the tools and technique which is used by the government in order to control the d...
Q: You would like to purchase a vacation home when you retire 10 years from now. The current cost of th...
A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the val...
Q: At age 33 Jacob starts making a contribution of $425 at the end of each half-year into a retirement ...
A: solution A= R(1+i)n+1/i R= Contribution half year=$425 n= number of periods=48 years - 33 years =15 ...
Q: Solve it early and correctly. But not solve in excel work. Typed or handwriting answer onlys
A: This question is based on a linear gradient series where cash flow increases with a fixed amount eve...
Q: The average annual tuition for a public university in 1998 was $20,354. In 2018, the average annual ...
A: Tuition cost is increased from $23,333 from $20,354. Percentage increase in the tuition fee over the...
Q: You would like to purchase a vacation home when you retire 10 years from now. The current cost of th...
A: The future value(FV) is ascertained by compounding the present value(PV) with the interest rate. The...
Q: A $100,000 bond is currently selling at 96 and the yield on the bond is 7.1%/ What is the interest r...
A: The question is based on the calculation of valuation of Bond with concept of market value.MP=∑i=1nC...
Q: Should the component costs be figured on abefore-tax or an after-tax basis?
A: In finance cost of capital is used to decide whether raising additional capital is required or not. ...
Q: Sandro Aero Inc. produces satellite earth station that sells for RM100,000 each. The firm’s fixed co...
A: Given information: Sales RM 100,000 each 50 units of earth stations produced and sold each year, Fix...
Q: The following table shows the average returns for some of the largest mutual funds commonly found in...
A: Calculate the amount accumulated in 15 years as below: Resultant Table: Hence, after 15 years when...
Q: You are managing an investment portfolio and sell an “inflation-protected” annuity that pays $3,862 ...
A: The present value is the value of the sum received at time 0 or the current period. It is the value ...
Q: Consider two bonds, a 3-year bond paying an annual coupon of 6.80% and a 10-year bond also with an a...
A: a. Compute value of 3 year bond as: Interest=1000×6.80%=$68VB=Interest×PVAFi%,time+PB×PVFi%,time=68×...
Q: What is the operating cash flow for 2011?
A: Cash flows are the cash generated from the operation of the business organisation. In other words, t...
Q: Use the 2012 marginal tax rates to compute the tax owed by the following person. Round taxable incom...
A: Tax owed is the amount that the party is liable to pay to the income tax department from the taxable...
Q: Tom Alexander has an opportunity to purchase any of the investments shown in the following table, ...
A: The Present Value is the current value of a future amount i.e., it is the amount to be invested ...
Q: Normal probability distribution Assuming that the rates of return associated with a given asset in...
A: A statistical measure that represents the variation in the return on the stock is term as the standa...
Q: Loaded-Up Fund charges a 12b-1 fee of 1.00% and maintains an expense ratio of 0.50%. Economy Fund ch...
A: Given, For loaded-up funds: The 12-b1 fee is 1.00% Expense ratio is 0.5%. For economy funds: Front e...
Q: You expect that you will need to replace your furnace in 4 years at a cost of $15,228. How much must...
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM (tim...
Q: Delsing Plumbing Company has beginning inventory of 24,000 units, will sell 70,000 units for the mon...
A: Given Beginning Inventory = 24,000 units Sell = 70,000 units Ending Inventory = 40% of Beginning Inv...
Q: Matt Wilson has decided to finally pay off his credit card. He currently owes $6,500 and he has dete...
A: In this question payment is done on monthly basis but interest is compounded weekly. To solve the qu...
Q: 1. ) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% inter...
A: Hi there are multiple questions are posted in this post. As per company guidelines expert can answer...
Q: Define Correlation as a concept
A: Introduction: Usually for any two variables, the change in one variable allows us to forecast change...
Q: Julian and Jonathan are twin brothers (and so were born on the same day). Today, both turned 25. The...
A: Value of retirement nest of Julian on his 65th birthday would be the future value of annuity of a an...
Q: Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) $172,900 Accounts payab...
A: Computation of the following ratios: Current Ratio = current assets/current liabilities ...
Q: A single person has taxable income of $52,000 per year. He contributes $1,000 to his company’s flex...
A: A flexible spending account is a saving account which provides specific tax benefits to the holder I...
Q: using the given formulas
A: The additional amount that a borrower pays to the lender over the borrowing amount is term as the in...
Q: Elizabeth Brown has $23,000 that she can deposit into a savings account for five years. Bank A compo...
A: Here, we need to calculate the future value of the amount deposited today at a given interest rate f...
Q: The management of Kosoko traders wants to establish theamount of financial needs for the next two ye...
A: The amount of external financing is usually required for the companies to conduct their business ope...
Q: Finance Question
A: Dupont analysis is ratio that has return on equity ratio as its basis. This ratio is mainly used by ...