(1) Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The six-month interest rate is 8 percent per annum in the United States and 6 percent per annum in Germany. Currently, the spot exchange rate is €1.01 per dollar and the six-month forward exchange rate is […]
1. Suppose that the indifference curves between consumption and leisure are concave to the origin. How many hours will a person allocate to leisure activities? 2. Suppose that the price of goods purchased in the marketplace rises. What is the impact of this price increase on the worker's reservation wage, on the worker's probability of […]
1. Suppose that the election of a popular candidate suddenly increases people’s confidence in the future. Use the model of aggregate demand and aggregate supply to analyse the effects on the economy. “Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
1. Suppose that a stock is expected to pay a $1 dividend at the end of this year and that your required return on equity investments is 9%. Using a one-period model of stock price determination, if you expect to sell a stock you buy today a year later for $17.0?, you will be willing […]
1- Suppose Kevin is operating a cake shop at a perfectlycompetitive market in South Korea and producingat the shutdown point. a. Draw graphs to show and explain the price andquantity of Kevin’s cakes, as well as his profit. b. With the graphs drawn in response to question(a), show and explain the long-run adjustmentprocess for Kevin’s […]
1) The largest source of household income in the U.S. is obtained from A. stock dividends B. wages and salaries C. interest earnings D. rental income 2) The market where business sell goods and services to households and the government is called the A. goods market B. factor market C. capital market D. money market […]
1)The Midnight hour, a localnightclub, earned $100,000 inaccounting profit last year. Thisyear the owner, who had invested $ 1million in the club, decided toclose the club. What can you sayabout economic profit (and the rateof return)in the nightclub business?ANSWER:Economic Profit = TR(total revenue)-TC(total economic cost)EP = $100,000 – $1,000,000EP = -$900,000Since EP is a negative […]
1) The GAMMA Corp. has decided to enter the next generation in customer service. In order to do so they need to purchase a new piece of equipment. The equipment is highly specialized and needs to be created to exact specifications. As a result it will take at least 30 months for the equipment to […]
1) The Hawaiian Corporation expects this year’s net income to be $12 million. The firm’s target debt/assets ratio is 30 percent. This year, Hawaiian has $20 million profitable investment opportunities. According to the residual dividend policy, what should be Hawaiian’s dividend payout ratio this year? “Looking for a Similar Assignment? Get Expert Help at […]
1. The function of the rules of inference is to justify the steps of a proof. A) True B) False 2. A proof is a sequence of steps in which each step is either a premise or follows from earlier steps in the sequence according to the rules of inference. A) True B) False 3. […]
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