Possible causes of the financial crisis
Question1. Subprime mortgage crisis is an example of a financial crisis that affected global markets worldwide. Give another example of a financial crisis in your discussions below.
- Discuss the possible causes of the financial crisis.
- Discuss the impact of the financial crisis on financial institutions and businesses elsewhere including your own country.
- Explain how the financial crisis affected the economies of different countries.
Question2. NAB Ltd current share price is $30 and it has just paid a $1.50 dividend. Dividends of NAB are expected to grow at the rate of 5% per year.
A. What is an estimated return that shareholders of NAB expect to earn?
B. NAB Ltd also has preference share outstanding that pays fixed dividend of $2.30 per share. If preference stock is currently priced at $25, what is the return that preference share holders expect to earn..............