Describe two contemporary factors

Assignment Help Accounting Basics

Reference no: EM132660351

Many managers do not understand the various ways that interest rates can affect business decisions. For example, if your company decided to build a plant with a 30-year life and short-term debt financing (renewed annually), the cost of the plant could skyrocket if interest rates were to return to their previous highs of 12% to 14%. On the other hand, locking into high, long-term rates could be very costly also with a long period when low short-term interest rates were to be available. As you can see, the ability to know your economic environment and its impact on projected interest rates can be crucial to making good financing decisions.

Problem 1: Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.

Problem 2: Now think about the industry in which you are employed or one in which you have past experience. To what macroeconomic factors is your industry most sensitive?

Problem 3: Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced within your chosen industry.

Support your comments with your own experiences, the weekly resources, and/or additional research. Use APA throughout and provide appropriate in-text citations and references.

Reference no: EM132660351

Questions Cloud

Paper on personal business conflict : Write an paper on a personal business conflict that he or she experienced in an organizational setting as an individual or within a group or team.

Could the company support its spurt of new projects : Cirque still had to ensure that its business model fit its strategy. Could the company support its spurt of new projects?

How to value a company using discounted cash flow : How your company has used the concepts. Do you believe financing a company's operation using stock is better than financing with bonds? Why or why not?

Grid contouring assignment : GRID CONTOURING ASSIGNMENT - DRAW AND LABEL CONTOURS AT 1m INTERVALS OVER THIS GRID - The grade must always be 0.5%. (i.e. falls by 0.5m over 100m)

Describe two contemporary factors : Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced

Discuss the new skills acquired from the class : How would you apply your new knowledge? Discuss the new skills you acquired from this class? How relevant are the new skills in your profession?

Estimate the demand equation for good x : Suppose that your analyst estimates the demand equation for good X as givenbelow: =12- -2 +1 + Good X sells for $1 per unit, good Y sells for $2 per unit, good

Define a real option : What is the difference between a loss arising from the unavailability of a website and the lost profits that are incurred when that website is disabled?

What is the investment worth to you today : If the interest rate is 8.47% and interest in compounded anually, then what is the investment worth to you today?

User Account

All Pages