Problem: Suppose the population of Area Y is relatively young while that of Area O is relatively old, but everything else about the two areas is equal.
A) Would interest rates likely be the same or different in the two areas? Please explain.
B) Would a trend toward nationwide branching by banks, savings & loans, and the development of nationwide diversified financial corporations affect your answer to Part A?
If a "typical" firm reports $20 million of retained earnings on its balance sheet, could its directors declare a $20 million cash dividend without any qualms whatsoever. Please explain supported by some relevant examples.