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stepan [7]
3 years ago
5

The term "marginal investor" means an investor who is active in the market and would tend to buy a stock if its price fell and s

ell it if it rose, barring any new information coming out about the stock. It is the "marginal investor" who determines the actual stock price. a. True b. False
Business
1 answer:
dedylja [7]3 years ago
7 0

Answer: a. True

Explanation:

A marginal investor is a representative investor whose actions shows the belief of people who are currently trading in the stock market. The stock's price is determined majorly by the marginal investor. When the price of the stock falls, the marginal investor buys at a lower price and later sell it at a higher price when it rises. The marginal investor trades at the margin thereby setting the price. The marginal investor can influence on the pricing of its equity. You can't specifically tell who the marginal investor is in the stock market. The marginal investor can be institutional or individual. Marginal investors can be individuals inside a firm that own an equity that stands out or is significant within the firm.

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Walter’s dividend is expected to grow at a constant growth rate of 6.50% per year. What do you expect to happen to Walter’s expe
denpristay [2]

Answer:

A. It will stay the same.

Explanation:

The formula to compute the dividend yield is shown below:

= (Annual dividend ÷ market price) × 100

Since in the question, it is given that the expected dividend is growing at the constant growth rate i.e 6.50%, so the expected dividend yield will remain the same in the future.  

As it shows a direct relationship between the growth rate and the dividend yield plus the market price is growing at a steady rate

3 0
3 years ago
Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is C
sertanlavr [38]

Answer:

C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.

Explanation:

I prepared a summary of an amortization schedule to explain this:

principal = $100,000

r = 8% annual

n = 360 months

first payment = $733.76: $666.67 are interests and only $67.09 reduces principal

second payment = $733.76: $665.95 are interests and only $67.54 reduces principal

last payment = $733.76: $4.90 are interests and only $728.86 reduces principal to $0

6 0
3 years ago
Abramov Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold a
brilliants [131]

Answer:

Option c is correct

$245,680

Explanation:

The total manufacturing cost = $737,040.

Units produced = 22,200

Cost per unit before adjustment for absorbed overhead=

=$737,040./22,200 units

=$33.2 per unit

Cost of goods sold before adjustment for overheads

= (cost per unit × units sold)

= $33.2 × 7,400

= $245,680

3 0
3 years ago
Read 2 more answers
A stock’s price fluctuations are approximately normally distributed with a mean of $29.51 and a standard deviation of $3.87. You
Ivahew [28]

Answer:

$34.46

Explanation:

In this Question there is Highest value of 10% and the probability of 90%.

we will use following formula to calculate the highest value of the stock

z value = ( x - mean ) / Standard deviation

where

x = the highest value

z score value at 10% = 1.28

Placing value in the formula

1.28 = ( x - $29.51 ) / $3.87

1.28 x $3.87 = x - $29.51

$4.9536 = x - $29.51

x = $4.9536 + $29.51

x = 34.4636

8 0
3 years ago
Briefly define and give a specific example of:A.1.Scale economies in connection with urban economics (i.e., related to land use,
Shtirlitz [24]

Answer:

Explanation:

.1.Scale economies in connection with urban economics (i.e., related to land use,housing, or firm location)A.2.Pecuniary agglomeration economiesA.3.Technological agglomeration economiesA.4.Retail agglomeration economiesA.5.ExternalitiesA.6.ceteris paribus assumptionA.7.A numeraire goodA.8.An efficient allocation of resources

7 0
3 years ago
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