Focus on identifying the underlying assumptions

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Reference no: EM131509204

In no less than 300 words:

Focus on identifying the underlying assumptions made in the case and view it from a finance / economic perspective. Focus on the following questions:

-When the Fed decided to engage in quantitative easing (QE), what uderlying assumtions were being made about its impact? Did those end up being true?

-What were the main mechanisms through which QE may stimulate the economy? Consider how QE may affect different economic sectors ( households, banks, corporations), and think about different macroeconomic variables ( inflation, lending, employment, etc. ) that will be most affected.

-Finally, what impact will QE have on a company's cost of capital, its capital structure and the valuation of its stock price?

Reference no: EM131509204

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