which of the following factors does not indicate market liquidity? a. number of shareholders b. high price volatility c. number of shares outstanding d. number of shares traded e. institutional interest
Q: Consider a competitive market in which the MPB = 180 – 2q and the MSC = q. In this market, however,…
A: "A positive consumption externality occurs when an person's consumption raises the well-being of…
Q: f an insured purchases an Annuily from which income is received, the insured is the receiver…
A: Answer is given below
Q: at is the gain or loss on purchasing power for 2021? (if LOSS, put a negative (-) sign before the…
A:
Q: Outpul Price | MPC | MEB /MSC / MSB / 20 64 64 100 80 1 10 bo 80 60 १० 2 3 80 160 60 96 80 64 64 92…
A: When firm produces goods it doesn't consider positive externalities into account. And when firm…
Q: 3. What is the socially optimum level of output and why? 4.What subsidy per (‘000’) would the…
A: Externality refers to an economic activities of one person which have impact on others person's…
Q: Transcribed Image Text:4. The demand and supply equations for two complementary good trousers (T)…
A: Given: The demand and supply equation for trousers: Qdr = 410 - 5Pr - 2PQST = -60 + 3P The demand…
Q: How utility is related to form utility?
A: Utility and Form utility are related as Utility is mainly of four kinds.
Q: Remi has been observing their meal expenses during the past few weeks. They realized they spend as…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: sing the demand and supply curves for bonds, explain the effect of the following on the interest…
A: Demand and Supply (AD) (AS) Aggregate demand in an economy refers to the total demand for the goods…
Q: Explain the concept of the Expected Utility Hypothesis (EUH) and state all relevant assumptions. Use…
A: When there is uncertainty about the result, this theory estimates the likely utility of an action.…
Q: 3.An industrial firm is considering purchasing several programmable controllers and automating the…
A: The present worth method is very well known in the industry since every single future expense and…
Q: The slope of the utility curves for a strongly risk averse investor, relative to the slope the…
A: When talking about the relationship between risk and utility, the curve is generally upward sloping…
Q: Answer the following problems on clean sheets of paper. Show your solution. A company purchased a…
A: We have Machine cost = 15000 Sales tax and shipping cost = 1000 Nonrecurring installation cost =…
Q: Question 14 Questions 14-18 refer to Figure 5-1 below. Suppose a firm operating in a perfectly…
A: Here, the given graph shows the cost functions of a perfectly competitive market with current price…
Q: if a product moves from being monopolistic to a monopoly will the demand for the industry decrease?…
A: If a product moves from monopolistic to monopoly , it means the number of firms in the industry gets…
Q: Tech Engineering in TN is making a product for the overseas market. The following cost data for the…
A: The Break even point analysis is in great use and widely recognised methods to make various rational…
Q: Question 2 Which of the following firms is the closest to being a perfectly competitive firm? Group…
A: Answer is given below
Q: Suppose all banks have zero excess reserves. The Fed buys bonds for $1 million and a bond dealer…
A: Required Reserve Ratio is the proportion of deposits that any bank keeps with itself to meet the…
Q: Question 11 Refer to your answers to Questions 8 Will there be entry, exit, or neither by other…
A: We have given Q Tc mc 0 6 1 10 4 2 15 5 3 21 6 4 29 8 5 38 9 6 48 10 The…
Q: Espinoza has $1,000 in cash, he deposits the total amount in Legion Banc. How much can LegionBanc…
A: In the banking sector, when an individual deposited his money, the proportion of this money is used…
Q: Assume that a country is endowed with 35 units of oil reserve. (a) the marginal willingness to…
A: * SOLUTION :- Given that , Marginal willingness to pay = demand curve equation : P = 14 -…
Q: Given the date for a real property: Value Description Amount Market Value P1,000,000 Assessment…
A: According to the question, The market value of the real property = $1,000,000 Assessment Level =…
Q: Economics A model of wages and prices is presented W₁ = a +a,P,+ a₂Q₁ + ₂ P = B + BW + B₂Y + ₂ Where…
A: A multiple-equation model is a system of equations made up of numerous equations that represent an…
Q: Thanks for your answer. Can you explain in a little more detail?
A: Negative externality refers to when the production or consumption results in a cost to the third…
Q: How would a new gold standard contribute to macroeconomic stability in emerging economies with…
A: Exchange rate - The exchange tells us about the worth of the currency of one country in comparison…
Q: How prospect theory challenges the standard economics' view of how individuals think about uncertain…
A: The theory of behavioral economics that depicts that investors tend to choose perceived gains as…
Q: Consider a version of the Tragedy of the Commons in which herder 1 and 2 simultaneously choose to…
A: In economics, the term equilibrium may be described as the steadiness stage of a marketplace. This…
Q: Question 3 Which of the following is NOT an example of a barrier to entry? Group of answer choices…
A: In a market, barriers to entry refers to the situation when existing firms restrict new firms to…
Q: current rate of inflation using PCE
A: Rate of inflation = Percentage change in the PCE index.
Q: Question: In computing the consumer price index (CPI), a base year is chosen. Which of the…
A: The price index is described because the relative prices of products and services in a specific…
Q: Describe three ways in which the interest rate changes implemented in an expansionary monetary plan…
A: In basic simple words we can say that the expansionary monetary policy in the market usually works…
Q: Draw the graph of the product differentiation formula of Pepsi Industry
A: The primary objective of establishing a new product is to avoid becoming yet another comparable…
Q: Hazel is thinking of making some of her operations sustainable. Construct some ideas that she might…
A: Hazel can perform the lawn service herself, saving money on hiring personnel.
Q: 1. Discuss how pollution violates the justice or fairness that characterizes a competitive free…
A: Environmental justice implies teaching those on the bleeding edges of plastic pollution about its…
Q: want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is…
A: A cash flow diagram is a monetary apparatus used to address the sources of income related with a…
Q: Consider two variable linear regression model: Y = a + Bx+u The following results are given below:…
A: Estimates of parameter are Alpha^ of Alpha Beta^ of beta.
Q: What effect will a sudden increase in the volatility of gold prices have on interest rates? Explain…
A: The rate of interest is that the amount a loaner charges a recipient and may be a share of the…
Q: Which one of the following is a fixed cost for a handmade furniture manufacturer? The cost of…
A: Since ,the fixed cost are the cost which doesn't used to vary with the change in output. In the…
Q: venues Revenues m sales from sales penses Expenses Wages Wages (to foreign workers) rkers) Steel…
A: *Answer: .Answer GDP = It is the sum of all the products and services produced in a country in…
Q: Two players: The employee (Linda) and the employer (Vera). Linda has to choose whether to pursue…
A: Dear Student as you have posted multiple sub-parts in a question but according to our policies and…
Q: Trade unionism and feminist politics are incompatible, as evidenced in U.S. history. Do you agree?
A: Trade means the export and import of goods and services over a period of time. Trade is the exchange…
Q: Economics Consider the following in normal form: B S B 4,2 0,0 S 0,0 2,4 a. Is there a Nash…
A:
Q: 6. Compare & contrast EITC, the minimum wage, and UBI. Which do you think is most effective in…
A: Compare EITC is known as Earned Income Tax Credit in the United States is a refundable tax credit…
Q: Refer to Figure 5-1 When price falls from P3 to P1, the firm finds that it.... decreases its fixed…
A: A perfect competition earns normal or zero profit in the long run. This means price equals Marginal…
Q: 1. How might advertising make markets less competitive? How might it make markets more competitive?…
A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…
Q: The demand and supply functions of a product is given as P = 200- 0.5Q and P = 100+ 0.5Q,…
A: *Hi there as you have posted multiple questions , following our guidelines we can only solve the…
Q: uppose a consumer views two goods, X and Y, as perfect complements. Her utility function is given by…
A: The utility function in economics measures a consumer's welfare or satisfaction as a function of…
Q: a. Find Sam's utility maximizing choice of ice cream and video games. Also find his utility level…
A: In economics, the utility function measures the welfare or satisfaction of a consumer as a function…
Q: Acme Molding is examining 5 alternatives for a piece of material handling equipment. Each has an…
A: A B C D E Capital Investment 12000 12500 14400 20000 16250 Net Annual Income 2500 2520 3050…
Q: In an open economy, investment can be greater than savings if there is a (Click to select) (Click to…
A: In an open economy, aggregate expenditure is the sum of consumption (C), investment (I), government…
470 - 15
which of the following factors does not indicate market liquidity?
a. number of shareholders
b. high price volatility
c. number of shares outstanding
d. number of shares traded
e. institutional interest
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- % Return on T-Bills, Stocks And Market Index State of Economy Probability T-Bills Phillips Pay-up Rubber-Made Market index Recession 0.2 7 -22 28 10 -13 Below Average 0.1 7 -2 14.7 -10 1 Average 0.3 7 20 0 7 15 Above Average 0.3 7 35 -10 45 29 Boom 0.1 7 50 -20 30 43 Mean Standard Deviation Coefficient of Variation Covariance with MP Correlation with Market Index Beta CAPM Req. Return Valuation (Overvalued/Undervalued/Fairly Valued) Nature of Stock (Aggressive/Defensive) Fill the parts in the above table that are shaded in yellow. Using the data generated in the previous question, plot the Security market line (SML). Superimpose…% Return on T-Bills, Stocks And Market Index State of Economy Probability T-Bills Phillips Pay-up Rubber-Made Market index Recession 0.2 7 -22 28 10 -13 Below Average 0.1 7 -2 14.7 -10 1 Average 0.3 7 20 0 7 15 Above Average 0.3 7 35 -10 45 29 Boom 0.1 7 50 -20 30 43 Mean Standard Deviation Coefficient of Variation Covariance with MP Correlation with Market Index Beta CAPM Req. Return Valuation (Overvalued/Undervalued/Fairly Valued) Nature of Stock (Aggressive/Defensive) Fill the parts in the above table that are shaded in yellow. Show the working for the parts in yellow. Using the data generated in the previous question, plot…13.3 Ganado’s Cost of Capital. Maria Gonzalez now estimates Ganado’s risk-free rate to be 3.60%, the company’s credit risk premium is 4.40%, the domestic beta is estimated at 1.05, the international beta is estimated at 0.85, and the company’s capital structure is now 30% debt. All other values remain the same as those presented in this chapter in the section “Sample Calculation: Ganado’s Cost of Capital.” For both the domestic CAPM and ICAPM, calculate the following: Sample Calculation: Ganado’s Cost of Capital Maria Gonzalez, Ganado’s chief financial officer, wants to calculate the company’s weighted average cost of capital in both forms, the traditional CAPM and also ICAPM. Maria assumes the risk-free rate of interest as 4%, using the U.S. government 10-year Treasury bond rate. The expected rate of return of the market portfolio is assumed to be 9%, the expected rate of return on the market portfolio held by a well-diversified domestic investor. Ganado’s estimate of…
- The principal risks associates with real estate lending are:A. declining valuesB. defaultsC. lack of liquidityD. all of the aboveNielson Motors (NM) has no debt. Its assets will be worth $600 million in one year if the economy is strong, but only $300 million if the economy is weak. Both events are equally likely. The market value today of Nielsonʹs assets is $400 million. The expected return for Nielson Motors stock without leverage is closest to: A. ‐25.0% B. ‐17.5% C. ‐12.5% D. 12.5%A share of stock of A-Star Inc. is now selling for $23.50. A financial analyst summarizes the uncertainty about the rate of return on the stock by specifying three possible scenarios: Business Condition Scenario, s Probability, p(s) End of Year Price Annual Dividend High growth 1 0.35 $35 $ 4.40 Normal growth 2 0.30 27 4.00 No growth 3 0.35 15 4.00 What are the holding-period returns for a one-year investment in the stock of A-Star Inc. for each of the three scenarios? Calculate the expected HPR and standard deviation of the HPR.
- A share of stock in Enbridge Inc. pays an annual dividend of $3.34, and the dividend is expected to grow at 2%, on average, in the foreseeable future. The current market price is $44.58/share. Below are the three individuals based on risk perception by each individual (from low to high). Identify who will likely be a buyer or a seller of this stock. (Each individual currently owns 100 shares.) Individual X has a discount rate of 5% Individual Y has a discount rate of 8% Individual Z has a discount rate of 11%The board of directors of Divided Airlines has declared a dividend of $2.50 per share pay able on Tuesday, May 30, to shareholders of record as of TuesdayMay 9. Cal buys 100 shares of Divided on Tuesday, May 2, for $ 150 per share. What is the ex date? Describe the events that will occur with regard to the cash dividend and the stock price.Liquidity risk is the result of a liability side issue and which of the following? 1.A cash flow issue 2.An asset side issue 3.A lack of interest revenue 4.A resource scarcity issue.
- An investor has $24,000 to invest in bonds of AAA and B qualities. The AAA bonds yield an average of 6% and the B bonds yield 10%. The investor requires that at least three times as much money should be invested in AAA bonds as in B bonds. How much should be invested in each type of bond to maximize the return? What is the maximum return? Define the variables needed to solve this problem. Organize your given information. (This part NOT graded, but encouraged.) Write the complete linear programming problem, which includes the objective function and all constraints. Graph and make sure all lines are labeled and shaded/solution region is clear and easy to identify. Create a corner point chart. Remember to mark your solution. Answer in a complete sentence or two: How much should be invested in each type of bond to maximize the return? What is the maximum return?Consider company ABC. Today it is 1st of January 2023 and ABC has just paid a dividend of £3 million. The expected earnings of ABC for the next 30 years are forecast to grow at a rate of 15% per annum. From 1st of January 2053 and onwards the earnings of ABC are expected to grow at a rate of 5%. The required rate of return of ABC is 12% per annum. The current dividend policy of ABC is such that they pay out 50% of its earnings as dividends (assume that they pay their dividends on 1st of January every year). a) Suppose that the dividend payout ratio is expected to stay constant in the future. What is the value of ABC stock? Show and explain your calculations and any assumptions you make. b) Just after the dividend payment on 1st of January 2043, ABC is planning to reduce their dividends and only pay out 40% of its earnings. What is the value of ABC under the new dividend policy? c) Provide a recommendation to the management of ABC as to whether they should increase/cut back on…Wu of Troy, New York, has $5,000 that he wants to invest in the stock market. Ji is in college on a scholarship and does not plan to use the $5,000 or any dividend income for another five years, when he plans to buy a home. He is currently considering a small company stock selling for $25 per share with an EPS of $1.25. Last year, the company earned $900,000, of which $250,000 was paid out in dividends. What classification of common stock would you recommend to Ji? Calculate the P/E ratio and the dividend payout ratio for this stock. Round your answers to the nearest whole number c3.Given this information and your recommendation, would this stock be an appropriate purchase for Ji? Why or why not?