1.in case the government is working to control deflation.
2.in case the government sets a favourable maximum interest rate on loans this will encourage borrowing and discourage depositing.
3.in case there is a foreseen scenario that borrowing interest rates my go high in the near future which will making borrowing expensive.
4.in case the central bank decreases the amount of liquid money to be held in custody my commercial banks.
Erwoti answered the question on August 7, 2019 at 12:02
- Explain factors that affect information seeking behaviour(Solved)
Explain factors that affect information seeking behaviour.
Date posted: February 6, 2019. Answers (1)
-
a)Nkaissery Agencies is currently seeking to expand its scale of operations by venturing into a new project of manufacturing goat milk. The managers of the...(Solved)
a) Nkaissery Agencies is currently seeking to expand its scale of operations by venturing into a new project of manufacturing goat milk. The managers of the firm expect the new project to generate earnings before interest and taxes of 20 percent for an investment of Kshs 25,000,000. The firm expects to raise the funds either by floating 1,000,000 shares of Kshs 25 per share or raising a quarter of the funds through equity and the rest through a loan at an interest of 12% p.a.
i) If the corporate tax is 30 percent, which of the above plans will maximize shareholder`s earnings? Why? (5 marks)
ii) What is the interest shield associated with the financial leverage? (1 mark)
Date posted: December 14, 2018. Answers (1)
- State and briefly explain whether the following statements are TRUE, FALSE or UNCERTAIN (10 marks) For an unlevered firm, the weighted average cost of capital...(Solved)
State and briefly explain whether the following statements are TRUE, FALSE or UNCERTAIN (10 marks)
For an unlevered firm, the weighted average cost of capital (RWACC) equals the cost of capital of an unlevered firm (R0).
For CAPM to work, the market must have a strong-form efficiency
There is no benefit to diversification if asset returns are uncorrelated.
In valuation, excess earnings represent the estimated value of intangibles.
The flow to equity approach is most preferred in situations where the project’s level of debt is known.
Date posted: December 14, 2018. Answers (1)
- Advantages of franchisor (Solved)
Advantages of franchisor
Date posted: November 15, 2018. Answers (1)
- Money supply refers to the currency in the form of notes and coins with the public including all the deposits with deposits taking institutions. (Mudida,...(Solved)
Money supply refers to the currency in the form of notes and coins with the public including all the deposits with deposits taking institutions. (Mudida, 2009). Discuss showing any four determinations of money supply.
Date posted: September 16, 2018. Answers (1)
- Outline the reasons for growth of government expenditure(Solved)
Outline the reasons for growth of government expenditure
Date posted: August 22, 2018. Answers (1)
- Outline the importance of public expenditure.(Solved)
Outline the importance of public expenditure.
Date posted: August 22, 2018. Answers (1)
- Discuss reasons why government borrow.(Solved)
Discuss reasons why government borrow.
Date posted: August 22, 2018. Answers (1)
- Outline the differences between Public and Private Debts(Solved)
Outline the differences between Public and Private Debts
Date posted: August 22, 2018. Answers (1)
- What are the circumstances under which procuring entity can transfer the authority?(Solved)
What are the circumstances under which procuring entity can transfer the authority?
Date posted: August 21, 2018. Answers (1)
- Explain the functions of Inspection and acceptance committee in public procurement(Solved)
Explain the functions of Inspection and acceptance committee in public procurement.
Date posted: August 21, 2018. Answers (1)
- Outline the functions of Public Procurement Oversight Authority(Solved)
Outline the functions of Public Procurement Oversight Authority.
Date posted: August 20, 2018. Answers (1)
- What are the organizations that nominate members Public Procurement Oversight Advisory Board?(Solved)
What are the organizations that nominate members Public Procurement Oversight Advisory Board?
Date posted: August 20, 2018. Answers (1)
- What are the Responsibilities of the Director General in public procurement?(Solved)
What are the Responsibilities of the Director General in public procurement?
Date posted: August 20, 2018. Answers (1)
- What are the contents of the Procurement Plan?(Solved)
What are the contents of the Procurement Plan?
Date posted: August 20, 2018. Answers (1)
- What are the functions of procurement department in public organisation?(Solved)
What are the functions of procurement department in public organisation?
Date posted: August 20, 2018. Answers (1)
- Outline the responsibilities of User Department in Procurement(Solved)
Outline the responsibilities of User Department in Procurement.
Date posted: August 20, 2018. Answers (1)
- What are the general responsibilities of Transition County Treasuries?(Solved)
What are the general responsibilities of Transition County Treasuries?
Date posted: August 20, 2018. Answers (1)
- outline the objectives of public debt(Solved)
outline the objectives of public debt
Date posted: August 20, 2018. Answers (1)
- Outline the benefits of capital budgeting in public sector(Solved)
Outline the benefits of capital budgeting in public sector.
Date posted: August 16, 2018. Answers (1)