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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

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You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk
kap26 [50]

Answer:

I have to identify the risk factors in the project and then gauge the willingness of the company to take such risks.

Explanation:

Risk tolerance is the willingness of an organization or an individual to take certain risks. The risk tolerance level of a person or organization can be classified as either high or low. For a project manager who wants to determine the risk tolerances associated with his project, he has to first identify the risk factors, and then try to know the risk level and if indeed this level is acceptable within the organization's culture and standard.

The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

8 0
3 years ago
Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tabl
shutvik [7]

A $ 300

B $ 300

C $ -300

D $ 300

Treasury bills are assets and the monetary base is a liability.

<u>Explanation:</u>

To increase the money supply in the economy, the federal reserve should buy the treasury bills and this will increase the money supply in the economy, leading to more demand in the economy and therefore there will be growth and development of the economy.

With the increase in the purchase of the treasury bills by the federal reserve, the money supply will increase by $300.

4 0
2 years ago
Sheffield Corp. earned $2120 for architecture services provided with the fee to be paid in the future. No entry was made at the
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Answer:  If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause: "d. revenues to be understated.".

Explanation: The income would be underestimated because the income of $2120 that corresponds to the service provided in the accounting period, must be recognized in the accounting period in which the economic events occur regardless of when the income of the funds occurs (accrual principle).

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How should sales promotion decisions be made?
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Answer:

By how they work and how they are in their field

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2 years ago
The difference between a nominal variable and a real variable is that A. real variables are calculated in​ current-year prices a
Oksanka [162]

Answer:

Option (D) is correct.

Explanation:

Nominal variables are the variable which are calculated on the basis of current market prices such as nominal GDP. Nominal GDP incorporates all of the changes happened in a current year such as changes occured in the inflation or deflation in a current year.

On the other hand, real variables are those variables which are calculated on the basis of base year prices to take the effects of the inflation or deflation during the period of time. For example, Real GDP. real GDP is determined by the market prices of the base year, so that one can compare the actual effect effect of inflation or deflation during a period of time.

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3 years ago
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