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Ludmilka [50]
3 years ago
15

Which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield

? The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price.
Business
1 answer:
mel-nik [20]3 years ago
5 0

Answer: The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price.

Explanation:

The Capital Gains on a security refers to the increase in the price of the security from the cost that it was bought at. The Yield can therefore be calculated by dividing the difference between the Security Price now and the Security Price at cost by the Security Price at Cost.

If the price is higher than the cost, that is a Capital Gain. The reverse is a loss.

Therefore, a Company's future stock price is directly related to the Capital Gains Yield of an investor who is already holding the stock. If the future price increases, the Capital Gains Yield on that stock will go up. The reverse is true.

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Which of the following is a correct description of the crowding-out effect of deficit spending?
borishaifa [10]

Answer:

the options are missing, so I looked for them:

a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.

d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.

the answer is:

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

Explanation:

The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.  

5 0
3 years ago
An example of filtering would be when a manager gives a subordinate an unwarranted compliment instead of honest criticism. worke
SpyIntel [72]

Answer:

Manager gives a subordinate an unwarranted compliment instead of honest criticism.

Explanation:

Filtering is when the sender manipulates the information so its received more favorably. A compliment instead of an honest critique is an example of this. It doesn't help the employee improve.

6 0
3 years ago
Hotaling Corporation is analyzing a capital expenditure that will involve a cash outlay of $146,040. Estimated cash flows are ex
Molodets [167]

Answer:

The solution shows that a rate of return of 10% which provides an annuity factor of 4.868 generates an NPV which is equal to zero. Thus, our IRR or internal rate of return is 10%.

Explanation:

The IRR or internal rate of return is the rate at which NPV or Net Present Value of the investment becomes zero. We are provided with the initial outlay for the project and the annual cash inflows along with time period. Using the annuity factors given below, we need to find out the factor which makes the NPV zero. The NPV is calculated as follows,

NPV = Present Value of Cash Inflows - Initial Outlay

We can try out each annuity factor and see what NPV is generates.

1. 6% rate (Annuity factor = 5.582)

NPV = (30000 * 5.582)  -  146040

NPV = $21420

2. 8% rate (Annuity factor = 5.206)

NPV = (30000 * 5.206)  -  146040

NPV = $10140

3. 10% rate (Annuity factor = 4.868)

NPV = (30000 * 4.868)  -  146040

NPV = $0

So, from the above solution we can see that a rate of return of 10% which provides an annuity factor of 4.868 generates an NPV which is equal to zero. Thus, our IRR or internal rate of return is 10%

4 0
3 years ago
Free agency in the NFL has:
arsen [322]
They can do what they want they are millionaire athletes that have a fanbase not saying its right by any means. 
4 0
3 years ago
Sharon works for a cereal manufacturing company. Her company recently built a manufacturing facility in Canada and agreed to tak
sergejj [24]

Answer:

d. buyback

Explanation:

The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.

4 0
3 years ago
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