Answer:
True.
Explanation:
If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.
And her in a case of a retired individual who lives on his or her investment income, then it would make sense for this person to prefer stocks with high payouts so he or she could receive cash without going to the trouble and expense of selling stocks. On the other hand, it would make sense for an individual who would just reinvest any dividends received to prefer a low-payout company because that would save him or her taxes and brokerage costs.
Answer:
See explanation section
Explanation:
A list of 5 business ideas that interests me -
a) Restaurant;
b) Environment-friendly small tools;
c) Recyclable and reusable setting business;
d) Tours & Travels;
e) Effective education program to enhance moral value.
For me, tours and travels business is highly opportunistic. Reasons are -
i) The company needs straightforward startup costs.
ii) There are massive opportunities because people like to travel very often.
iii) I can do my work independently.
iv) I have the chance to roam around the world with free air tickets.
Answer:
First Financial would divide the $10,500 loan by the present value of annuity due of 1.
The correct answer is C
Explanation:
Present value of annuity formula is used for determining the amount of loan payment. Since the payments will be made at the beginning of each month, we will apply the formula for present value of annuity due. In order to determine the amount of monthly payment, we will divide the principal by the present value of annuity due of 1.
Answer:
Option (D) is correct.
Explanation:
There are two kinds of effect:
(1) Substitution effect : It is related to the relative price changes.
(2) Income effect: It is related to the change in purchasing power.
The substitution effect refers to the change in the consumption of a good with any change in the relative price of the good. If there in an increase in the price of one good then as a result the demand for that good decreases and the demand for other substitute good increases because of the lower price.
