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Government Budget Deficit
If the Government spends much more than it gets in from tax revenue, it runs a budget deficit. This deficit should be covered or financed either via printing more or borrowing money. The US Government has in the past utilized the two ways of financing its deficit in a balanced way. The effect in interest rates is where the deficit is financed through borrowing or printing. The Government would borrow in the S.T market that increase the demand of available funds for lending such subsequently pushes the interest rates up.If the Government prints much more money it will lead to inflation and the interest rate would eventually rise. Hence the larger the Government deficit, and the higher the level of interest rates.
Example of Dividend Basis Valuation Company Laxmi Synthetics pays a dividend of 10% on its Sh.60 par value ordinary shares. This company uses a discount rate of 15%. A
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You are taking an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1=2.00). The stock has a bet
defect of traditional defect
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if u were the professor wht your opinion about vincent mind stage
Compute the future value of $2,500 compounded annually for 10 years at 6%
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