Based on the articles and your independent research, respond to the following:
How is consumer debt different today than in the past?
What role do interest rates play in mounting consumer debt?
What are the typical interest rates applied to credit cards, mortgages, and other debt?
Many of todayâs interest rates are variable rather than fixed. What difference does this make to pension plans, housing loans, and other personal finances?
Have the issue of consumer debt and the role of interest rates been explored?
Does the response clearly explain the causal relationship between fixed interest rates and pension plans, housing loans, and other personal finances?
Are statements supported by reason and research?
Based on the articles and your independent research, respond to the following:
How is consumer debt different today than in the past?
What role do interest rates play in mounting consumer debt?
What are the typical interest rates applied to credit cards, mortgages, and other debt?
Many of todayâs interest rates are variable rather than fixed. What difference does this make to pension plans, housing loans, and other personal finances?
Have the issue of consumer debt and the role of interest rates been explored?
Does the response clearly explain the causal relationship between fixed interest rates and pension plans, housing loans, and other personal finances?
Are statements supported by reason and research?
Related questions
Merger bid
Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 3% and the market risk premium is 7%.
Van Buren currently expects to pay a year-end dividend of $1.80 a share (D1 = $1.80). Van Buren's dividend is expected to grow at a constant rate of 6% a year, and its beta is 0.9.
Harrison estimates that if it acquires Van Buren, the year-end dividend will remain at $1.80 a share, but synergies will enable the dividend to grow at a constant rate of 10% a year (instead of the current 6%). Harrison also plans to increase the debt ratio of what would be its Van Buren subsidiary-the effect of this would be to raise Van Buren's beta to 1.2.
If Harrison were to acquire Van Buren, what would be the range of possible prices that it could bid for each share of Van Buren common stock?
Round your answers to the nearest cent.
a. Low bound $
b. High bound $
The text gives a number of valid, acceptable reasons for companies to merge. Which of the following is NOT acceptable?
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