Answer: The correct answers are "decrease" and "decrease".
Explanation: Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. All else equal, if the government decided to impose a tax on soda, the equilibrium quantity of soda would <u>decrease</u> and the equilibrium price of soda would <u>decrease.</u>
Answer:
False
Explanation:
A certificate of Deposit or CD is a deposit made into a bank for a specific time. This deposit will earn a fixed interest rate that varies upon the days the deposit is made of. The rule is: Longer the days of the deposit, longer the interest rate paid.
Answer:
Explanation:
Profit on a long call option = max(St - X, 0) - premium paid
Profit on a long call option = max(29 - 27, 0) - 1.1
Profit on a long call option = max(2, 0) - 1.1
Profit on a long call option = 2 - 1.1
Profit on a long call option = 0.9 per share
Total profit on the long call option = 0.9 * 100 shares per contract * 3 contracts = 0.9 * 100 * 3 = $270
Net profit on this investment = 270 - 10
Net profit on this investment = $260
Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of Pumps.
What is debt?
A sum of money due to another by another person, business, etc. Borrowing money to pay for a good, service, or financial asset results in debt (e.g. INSTALMENT CREDIT). Debt contracts include interest charges for the period of the loan and call for the eventual repayment of the amount borrowed.
What happens if a contract is not in writing?
The agreement might not be upheld in court if it does not adhere to the rules for contract writing. The court will frequently rule that a contract does not exist. This implies that no conflicts can be settled in court. If there is a dispute, the parties might be unable to resolve it through the legal system.
Learn more about debt: brainly.com/question/19052808
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Answer:
True
Explanation:
The trade off theory states that capital structure decisions involve a trade off between costs and benefits of debt financing. Originally MM argued that a firm's capital structure should be 100% debt, but after accounting for bankruptcy costs, then the firm's capital structure should be less than 100% debt. Companies must substitute debt for equity at different levels (or vice versa if needed) until they reach a balance where the firm's value is maximized.
