What are the advantages of using money in an exchange economy over the barter system? March 2, 2016 Read More »
What do you understand by a liquidity trap? Illustrate and explain how an increase in money supply through a purchase in open market operations affects the rate of interest. March 2, 2016 Read More »
)Evaluate any three factors that may be responsible for the slow growth in the number of companies seeking listing at the Nairobi Stock Exchange or Stock Exchange in your country. March 2, 2016 Read More »
Andreas Company Ltd. currently pays a dividend of Sh.2 per share and this dividend is expected to grow at an annual rate of 15% for the first 3 years then at a rate of 10% for the next 3 years after which it is expected to grow at a rate of 5% thereafter. (i)What value would you place on the stock if an 18% rate of return were required? (7 marks) (ii)Would your valuation change if you expected to hold the stock for only 3 years? March 2, 2016 Read More »
Describe in brief the greatest difficulties faced in capital budgeting in the real world March 2, 2016 Read More »
Explain how the Capital Authority can ensure: (i)faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country March 2, 2016 Read More »
What economic advantages are created by the existence of: (i)Primary markets. (3 marks) (ii)Secondary markets (3 marks) (iii)Portfolio management firms. (4 marks March 2, 2016 Read More »
Highlight the various measures that would minimize agency problems between the owners and the management. March 2, 2016 Read More »