1. Factors contributing to the occurrence of bank panics do not include:
A) the absence of any lender of last resort to supply funds to stressed banks.
B) the lack of some form of deposit insurance to reassure worried depositors.
C) an increase in value of the? banks' assets because of deteriorating balance sheets.
D) widespread uncertainty about the health of the banking system
2. if im an investor and needed the equivalent of $2000 per month over the next 10 years, how much should i invest in American Express' bonds? what about its stock? Should I invest if i can get 2% on a treasury note?
3. Your company is planning to issue preference shares.The shares sell for $12.However, if new shares are issued, the company will receive only $10.30.The fully franked dividend rate is 13%.What is the before tax cost of capital for the shares to your if the company tax rate is 30%?