Answer: E) price-earnings ratio will be 14.26 ex-dividend.
Explanation:
Stock prices generally decrease in price by the price of the dividend on ex-dividend date.
This means that this stock will reduce to:
= 31.17 - 1.09
= $30.08
Price to Earnings ratio = Stock price/ Earnings per share
= 30.08/2.11
= $14.26
<em>Option E is correct. </em>
Answer:
One of the main economic issues in developing countries is rampant corruption or extremely inefficient government institutions. This means that less government intervention is always better in developing countries.
On the other hand, in developed countries, the checks and balances system exists within government institutions and even though corruption may exist, it is not as widely spread. The most severe economic problem in developed countries is inequality and huge economic actors. This is why activist policies may be necessary in developed countries, at least in certain economic sectors.
evader, (ignoring the decision)
Answer:
an increase in expected interest rate volatility.
Explanation:
Liquidity preference theory is a macroeconomic model developed by the world renowned economist, John Maynard Keynes. It is a theoretical framework that states that investors generally would want a higher interest rate on any securities or stocks with long-term maturity rate and having greater or more associated risk because, ceteris paribus investors prefer a highly liquid assets or cash.
This simply means that, ceteris paribus (all other things being equal), investors would always choose a more liquid asset, at a similar rate of return with other assets.
According to the Liquidity Preference Theory of the term structure of interest rates, an increase in the yield on long-term corporate bonds versus short-term bonds could be due to an increase in expected interest rate volatility because an investor would generally expect to recoup a higher return on investment on the long-term corporate bond.