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garri49 [273]
3 years ago
13

Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Cor

p.'s stock to change price:
a. The government announces that inflation unexpectedly jumped by 2 percent last month.
b. Big Widget's quarterly earnings report, just issued, generally fell in line with analysts' expectations.
c. The government reports that economic growth last year was at 3 percent, which generally agreed with most economists' forecasts.
d. The directors of Big Widget die in a plane crash.
e.Congress approves changes to the tax code that will increase the top marginal corporate tax rate. The legislation had been debated for the previous six months.
Business
1 answer:
-BARSIC- [3]3 years ago
8 0

Answer:

Check the explanation below

Explanation:

Inflation is systematic (Market) risk, it impacts all stocks

Results of company is unsystematic (Specific) risk, as they are as expected stock price wont have much impact

Economic growth is systematic (Market) risk, as it is inline with forecasts stock prices will be constant

Directors death is unsystematic (Specific) risk, stock price will go down

Taxation is systematic (Market) risk, as it is discussed from 6 month, stock price wont have much impact currently

You might be interested in
When workers stop working until management meets certain conditions, the event is called a _______?
TiliK225 [7]

When workers stop working until management meets certain conditions, the event is called a Strike.

Strikes are usually performed by the workers to put their unfulfilled demands in front of the management and workers intent to continue the strike until their demands are fulfilled or other remedies are given which satisfy the workers.

Hence the correct answer is <u>Strike</u>


5 0
3 years ago
how can electricity, communication, and transportation facilities indicate the potential for industrial growth?​
nlexa [21]

Answer:

The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization.

Explanation:

3 0
3 years ago
On January 1, 20X1, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salv
Vinil7 [7]

Answer:

1. Why is this an operating lease for Child Company?

The life of the asset is 10 years while the lease is only 3 years long, so it cannot be classified as a financial lease.

2. What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 20X1?

annual lease payment = $128,000 (ordinary annuity)

PVIFA, 9%, 3 periods = 2.5313

present value = $128,000 x 2.5313 = $324,006.40

3. How much lease expense should Child Company recognize in 20X1?

lease expense = PV of lease x interest rate = $324,006.40 x 9% = $29,160.58

6 0
3 years ago
Anne has chosen how many bagels and how many units of cream cheese she would buy this month. She has $20 to spend on these two g
scZoUnD [109]

Answer:

The correct answer is:  her marginal benefit per dollar for bagels will decrease, and her marginal benefit per dollar for cream  cheese will increase.

Explanation:

Anne has $20 to spend on two goods bagels and cream cheese.

The marginal benefit per dollar for bagels is $6.

The marginal benefit per dollar for cream cheese is $10.

If she decides to buy more bagels and less cream cheese, the marginal benefit per dollar for bagels will decrease and marginal benefit per dollar for cream cheese will increase.

The marginal benefit per dollar for a commodity is the ratio of marginal utility derived from consuming the last unit of the commodity upon price of the commodity.

As more and more quantity of a commodity is consumed the marginal benefit per dollar for it will go on declining. This is because the marginal utility derived from each additional unit will go on declining while price will remain the same. The less the commodity is consumed, the marginal benefit per dollar for it will increase.

4 0
3 years ago
Regis Company manufactures plugs at a cost of $36 per unit, which includes $8 of fixed overhead. Regis needs 30,000 of these plu
Oliga [24]

Answer:

$190,000

Explanation:

Regis produces 30,000 plugs per year and its overhead costs are $8, so their variable costs are $28 per plug (=$36 - $8).

Orlan offers to sell them the same plugs at $33 per plug, which means that Regis will be paying $5 more per plug than its own variable costs.

Regis costs will increase $5 x 30,000 = $150,000 per year.

Its fixed costs will decrease by $60,000 if they decide to purchase the plugs.

Plus it can rent the facilities at XXX per year? since it plans to have $100,000 in net savings per year:

$100,000 = $60,000 + XXX - $150,000

$100,000 = XXX - $90,000

XXX = $190,000

4 0
3 years ago
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