In this report we will explain and discuss the inflation rate that happened in Australia for the last three years. The issues uncovered will allow us to see the reasons behind the decreasing in inflation rate in Australia. Lastly we will discuss the type of inflation that will happen after the collection of carbon tax that started in the beginning of July 2012. In the table and chart below are some of statistics that we obtained from several sources to aid our explanation: 1. Euromonitor International
Premium Inflation
$42 per share. Assume the expected rate of return on Federated’s stock is 18 percent. • Taxes: Federated’s marginal tax rate is Tc = .35 What are the key assumptions underlying your calculation? For what type of project would Federated’s weighted-average cost of capital be the right discount rate? 2. Suppose Federated Junkyards decides to move to a more conservative debt policy. A year later its debt ratio is down to 15 percent (D/V =.15 ). The interest rate has dropped to 8.6 percent. Recalculate
Premium Finance Interest Net present value
greater trading volumes. a) False All other things being equal‚ a given change in the interest rates will have a greater impact on the price of a low-coupon bond than a higher-coupon bond with the same maturity. a) True If investors believe inflation will be increasing in the future‚ the prevailing yield will be downward sloping. a) false The real rate of interest varies with the business cycle‚ with the highest rates seen at the end of a period of business expansion and the lowest at the bottom of a
Premium Bond Debt
ECON 364 Money & Banking Chapter 1‚ page 19‚ #20 chapter 2‚ page 50‚ #22 20. Much of the US government debt is held as treasury bonds and bills by foreign investors. How do fluctuations in the dollar exchange rate affect the value of that debt held by foreigners? The book states a strong dollar would benefit American consumers by making foreign goods cheaper‚ however this hurt American businesses and eliminated some jobs by cutting domestic and foreign sales of their products. A strong dollar
Premium Economics Finance Money
LIBOR ? Libor is the benchmark interest rate that affects how consumers and companies borrow money across the world. It the average interest rate calculated through the submission of interest rates by major banks in London. It is controlled by British Bankers ’Association(BBA) WHAT IS AFFECTED BY THE RATE ? Derivatives •Libor underpins at least $350 trillion in derivatives and other related financial products Mortgages •Of all the adjustable rate mortgages in US‚ 45% of the prime
Premium Bank
Banking Concept: Simplifying RBI Key Policy Rates What are the key policy rates used by RBI to influence interest rates? The key policy or ’signalling’ rates include the bank rate‚ the repo rate‚ the reverse repo rate‚ the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR). RBI increases its key policy rates when there is greater volume of money in the economy. In other words‚ when too much money is chasing the same or lesser quantity of goods and services. Conversely‚ when there
Premium Fractional-reserve banking Central bank Monetary policy
QUESTION ONE WHY MULTINATIONALS FIRMS MUST ASSESS THE BUSINESS ENVIRONMENT OF COUNTRIES THEY OPERATE AND INTEND TO OPERATE IN. Multinational Corporation/Firm is a business that produces or distributes products or services in one or more foreign countries by establishing a branch or affiliate there. These multinational Corporations operate in a complex business environment. Cultural‚ social‚ economic‚ political and technological systems vary from country to country. In order to operate successfully
Premium Inflation
Disadvantages of flexible exchange controls 3. Emerging markets and exchange control 3 4. South Africa and exchange controls 3 5. Conclusion 5 6. References 6 List of figure: Figure 1: Exchange rate forecast 4 Figure 2: Price of Brent crude oil 4 Figure 3: SA inflation: history and forecasts 5 Introduction South Africa and the countries of the world have seen tremendous shifts in exchange control and exchange regimes
Premium Macroeconomics Inflation Central bank
distance is covered but there is no displacement. 5. Give one example of motion where‚ distance and displacement are same. 6. When moving car returns to the same point what will be the ratio of a) Displacement to distance. b) Distance to displacement. 7. In a long distance race‚ the athletes take four rounds of a track such that the time of Finish is same as the line of start. The length of the track is 200 m. a) What is the total distance covered by the athletes
Premium Heart rate Velocity Acceleration
Assignment Topic 2 AUD/USD Exchange Rate The main movements of the AUD/USD exchange rate in the past eighteen months will be studied‚ as well as the underlying conditions that caused these specific movements to happen. Economic models and theories will be used to support the discussion and to analyse the reason for these fluctuations. Discussion will then take place to whether these movements have been a help or a hindrance to the overall health of the Australian economy. FIGURE 1.0
Premium Central bank Australian dollar Foreign exchange market