Answer:
<u>sell the stock which will drive it's expected return even lower.</u>
Explanation:
An investor wants to be compensated for the risk undertaken in the form of return. When investors believe that a stock is not providing sufficient return, such stocks would be sold by the investor.
When a stock is not performing well i.e it's current market price goes down, all the investors holding that stock will sell it , leading to it's market price going further down.
Since the market price goes further down, the expected return on such a stock would further decline.
Answer:
firm can change output levels without having any significant effect on price.
Explanation:
In the case when we say that the firm is a price taker that means the firm has the power to change the level of an output but this does not have any kind of impact on the price. They accepted the price for the prevailing market and each unit could be sold at the similar market price. It could impact the market price also they enjoy the pricing power
Therefore the above statement should be considered
Answer:
Wyman company should recognize a foreign exchange loss in the amount of $12,600
Explanation:
On the date of sale: £1 = $1.35
So £60,000 = 60,000 × $1.35 = $81000
On the date of payment: £1 = $1.14
So £60,000 = 60,000 × $1.14 = $68, 400
The amount Wyman company received on the date of payment is $12,600 less than the amount it ought to have received on the date of sale.
So Wyman company should recognize a foreign exchange loss in the amount of $12,600
Answer: Public relations
Explanation:
Public relations is the practice of managing information release and its spread deliberately between an individual, organization and the public.
Public relations is controlled internally and it is form of communication management which seeks to influence the opinions, feelings, or beliefs that are held by customers, suppliers, stockholders, and employees, about a firm and its products.
The nominal income will increase with the increase in the real income.
<u>Explanation:</u>
Real income of the person is the buying or the purchasing capacity of the person. It is the nominal income adjusted for inflation. If there is an increase in the real income more than the increase in the level of the prices at a particular period of time, it means that the level of nominal income of the person will also increase.
