Beneficiaries as of October 2015 Type of Beneficiary      …

Beneficiaries as of October 2015 Type of Beneficiary                                Total (thousands) Aged 65 or older                                    43,947 Disabled, under age 65                          14,228 Other                                                    6,817 Which New Deal agency was created to specifically serve this population?

. . . I see one-third of a nation ill-housed, ill-clad, ill-…

. . . I see one-third of a nation ill-housed, ill-clad, ill-nourished. It is not in despair that I paint you that picture. I paint it for you in hope—because the Nation, seeing and understanding the injustice in it, proposes to paint it out. We are determined to make every American citizen the subject of his country’s interest and concern; and we will never regard any faithful, law-abiding group within our borders as superfluous. The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little. . . . —President Franklin D. Roosevelt, Second Inaugural Address, January 20, 1937 President Franklin D. Roosevelt addressed the situation described in this speech by

Reinhardt Industries is a mature company experiencing a cons…

Reinhardt Industries is a mature company experiencing a constant growth rate of 4.5%.  The firm has just paid a dividend of $3.60 (that is, D0 = $3.60).  Investors require an 11% rate of return on the stock.  What is the firm’s stock price today?  NOTE: Since the $3.60 dividend has already been paid, its value should not be reflected in the firm’s stock price.  

In today’s market, you observe the following yield curve for…

In today’s market, you observe the following yield curve for government securities: Assume that the pure expectations hypothesis holds (i.e., the maturity risk premium = 0).  What does the market expect will be the interest rate on 2-year securities three years from now?  You may solve this problem using either the algebraic or geometric approach.