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3 years ago

A Giffen good is a good for which : _________

Business

1 answer:

notsponge [240]3 years ago

7 0

Answer:

d. both a and b are correct

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a customer sells short 100 shares of PDQ at $28 as the initial transaction in a new margin account. Subsequently, PDQ declines t

sergiy2304 [10]

Answer:$500

Explanation:

Sell short means ,borrowing shares of a company that the buyer speculates will fall in value at a later date

Change in equity 100(28-23)=100×5=$500

4 0

3 years ago

Which of the following statements does correctly explain the effect of additional debt on the weighted average cost of capital (

Aleksandr-060686 [28]

Answer: The net effect of additional debt on WACC is uncertain.

Explanation:

Weighted Average Cost of Capital (WACC) refers to the rate of return that a company is paying it's capital providers on average be it debt holders or shareholders.

Adding additional debt to the mix effects the WACC in an uncertain way due to the different ways the WACC could react. For example, adding additional debt decreases the after-tax cost of debt because debt is tax deductible which means that more money can flow to shareholders so that reduces the cost of equity. At the same time however, Additional debt can increase the risk of bankruptcy meaning that the before tax cost of debt rises which also increase the WACC.

The effect can swing either way thereby making it uncertain.

5 0

3 years ago

Recently a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as

xz_007 [3.2K]

It would be 1) existentialism

3 0

3 years ago

Widgets, Inc., based in the United States, makes small parts for the auto industry. Over the past couple of years, Widgets has l

lord [1]

Answer:

This is called:

Trade Restriction

Explanation:

Outsourcing to foreign markets can cripple domestic industries, increase local unemployment, and impose trade imbalance. To check excessive outsourcing, the federal government imposes tariffs. Such a trade restriction is considered necessary within the domestic economy. But it may be regarded as a restriction of free trade within the international community.

7 0

3 years ago

On July 1, an investor holds 50,000 shares of a certain stock. The market price is $30 per share. The investor is interested in

Yakvenalex [24]

Answer:

The strategy the investor should follow is to short 26 contracts of September Mini S&P 500 futures.

Explanation:

Provided information;

Amount of shares of a certain stock =50,000

The market value per share = $30

Portfolio value= P = 50,000 × 30 = $1,500,000

Beta of stock β = 1.3

current Index futures price = 1,500

Multiplier = $50

Futures Value A = 1,500 × 50 = $75,000

The formula used in calculating the number of contracts =

Number of contracts N = (β × P) ÷ Future values

N = (1.3 × $1500000) ÷ $75000

N = $1950000 ÷ $75000

Number of contracts N = 26

The strategy the investor should follow is to short 26 contracts of September Mini S&P 500 futures.

5 0

4 years ago