Answer:
the approval was already anticipated by the market
Explanation:
This abnormal return of 0% suggests that the approval was already anticipated by the market. Meaning that the price of the Pharma company's stock had already been affected by the speculation previously and when the FDA made the announcement investors had already made their move in the market with regards to Pharma's stock. Thus causing no further move and a return of 0% to occur.
Answer:
$360,308
Explanation:
The computation of the total amount of interest revenue is shown below:
But before that we have to determine the annuity payment per year which is
Annuity payment per year is
= Fair value ÷ PVIFA for 10% for 5 years
= $991,692 ÷ 5.868
= $169,000
Now Total payments for eight years is
= $169,000 × 8
= $1,352,000
So, the amount of interest revenue is
= Total payments made for eight years - Fair value
= $1,352,000 - $991,692
= $360,308
Answer:
1. Supply will decrease
Explanation:
Due to the basic economic principle that when supply superceeds the demand for goods and services, the prices of such goods and services fall. As a result of this, and an expected increase in future prices, the supply of coffee beans by coffee merchants to the markets will decrease.
This is because the merchants want to receive higher profits and to do so, they will withhold supply to sell in the next six months when the price is higher.
As a possible approach to eliminating the government budget deficit, increasing taxes for everyone would be a Fiscal deficit Policy. There are two ways they can reduce the deficit: either by raising taxes and/or boosting economic activity to increase revenue or by reducing spending on government-run programs to reduce spending.
<h3>
What happens if there is an increase in the budget deficit?</h3>
Theoretically, a rise in the fiscal deficit might stimulate a sluggish economy by increasing consumer spending and investment opportunities by giving people more money. However, long-term deficits may be harmful to stability and economic growth. Over the previous ten years, the United States has regularly had a deficit.
Promoting economic growth is one of the best strategies to lower the budget deficit as a percentage of GDP. The government will generate more tax income without raising taxes if the economy expands. People pay more VAT, businesses pay more corporation tax (a tax on profits), and employees pay more income tax when the economy grows.
Learn more about The Budget deficit here:
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Answer:
B) Unlike with capital structure, taxes are not an important market imperfection that influence a firm's decision to pay dividends or repurchase shares.
Explanation:
Taxes are a very important market imperfection that specially affect dividends' policies.
Any tax affects the market negatively, but corporate shareholders are affected twice since the corporation's profits are taxed and the dividend's received by the shareholders are also taxed, as well as any capital gain.
