C to increase the money supply the fed can buy gov

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Unformatted text preview: oaned by banks. c. To increase the money supply The Fed can buy gov. bonds from private banks. The Fed pays the private banks with newly printed money. Now there is more money for the banks to loan to clients 2 of 5 3. These questions concern Apple Inc. and Palm Inc. Using Google’s or Yahoo's Finance page, answer the following questions for each of these two public companies: (a) What is the stock's symbol? On which exchange is the stock traded? (b) Compute the capital-gain yield on each stock between April 23, 2009 and April 23, 2010. Use closing day stock prices. (c) Research both these companies a little and explain why you think the capital-gain yield is positive or negative, in each case, over this one-year period? a. Apple Inc.=AAPL; traded on NASDAQ b. AAPL Capital Gain Yield= 270.3(Pt)-125.4(Pt-1) ______________________* 100= 115.6% 125.4(Pt-1) c. Palm Inc.=PALM; traded on NASDAQ PALM Capital Gain Yield= 5.03...
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