Option C
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is: adaptive.
<u>Explanation:</u>
Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.
If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.
Answer:
a) Market Value = $100 million × $20 = $2,000 million = $2 billion
Market value of equity would remain same = $2 billion
b) Market value would remain same after recap. Only market capitalization would reduce to half.
Market value of equity = 1 billion
c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.
d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.
e) Equity shareholders have gained due to increase in there share value
Explanation:
In Economic theory, we learn that generally, the more older people there are, there is an increase in the demand of healthcare. As a result, the increase in demand for healthcare may increase prices and cause a higher demand for doctors and nurses.
Yes you have the answer right.
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Considering the automobile analysis, the 2022 Altima's X-Tronic CVT includes adaptive ratio control, which "<u>varies transmission response depending on the driving situation."</u>
<h3>The 2022 Altima's X-Tronic CVT </h3>
2022 Altima's X-Tronic CVT is one of the latest brand vehicles made by the Nissan manufacturer. The vehicle is finely designed to give users modern features and functions.
The 2022 Altima's X-Tronic CVT comes with adaptive ratio control, which "<u>varies transmission response depending on the driving situation</u>, "enhancing the ease of navigation system when driving through the road.
Hence, in this case, it is concluded that the correct answer is "<u>varies transmission response depending on the driving situation."</u>
Learn more about automobile features here: brainly.com/question/25981194
