Capital costs
Article Abstract:
Corporate funding can be accomplished by issuing stocks or through a loan. Preferred or common stocks as equity will raise the company's cost of funds since risk-taking stockholders would expect higher returns for their money. Debt also increases this cost, although this changes as more money pours into the company coffers, because a well-capitalized firm is less likely to declare bankruptcy, subsequently lowering the premium for credit risks. Other considerations for equity costs are taxes, the information given to stockholders and transaction or stock issuance costs.
Publication Name: Secondary Mortgage Markets
Subject: Economics
ISSN: 0740-4271
Year: 1992
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To some extent, the Clinton Administration's fiscal policy package
Article Abstract:
The Clinton Administration's deficit reduction package, consisting of increased taxes and reduced spending, probably will affect the economy positively. Higher taxes may not influence productivity, wealth, or incomes, according to research that indicates changes in taxation prompt people to adjust their portfolios. Also, spending cuts probably will help reduce the deficit from 5% of the gross domestic product (GDP) to 3% of the GDP. A new health care plan is critical to deficit reduction, and government monetary policy can also help stimulate the economy.
Publication Name: Secondary Mortgage Markets
Subject: Economics
ISSN: 0740-4271
Year: 1993
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A balancing act
Article Abstract:
The US economy is in a state of equilibrium. Since 1991, economic growth has hovered at 2.5%, inflation has averaged at 3%, while unemployment has ranged from 5% to 5.5%. Satisfied with the 1996 elections and the low unemployment rate, the bond market has seen high bond rates reduce mortgage interest rates to 7.5%. Forecasters predict a similar scenario until 2000, discounting the possibility of a major recession or a huge run-inflation.
Publication Name: Secondary Mortgage Markets
Subject: Economics
ISSN: 0740-4271
Year: 1996
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