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adoni [48]
2 years ago
14

2. Why might it be a plus for a company to have such a high share price that trading in its stock is discouraged? What drawbacks

might there be for a company in this situation?
Business
1 answer:
Strike441 [17]2 years ago
6 0

While a high share price discourages trading in the company's stock, it advertises the company's stellar performance to existing and potential investors.

 

A high share price also discourages corporate takeovers, assuring the jobs of senior management. Existing investors can realize some quick gains by selling their shares at high profits.

 

2. The drawback of having a high share price is that investors willing to sell off their shares cannot do so because potential buyers are discouraged. Another disadvantage is that it puts much pressure on the management to maintain the entrenched performance level. Any subsequent fall in prices will not meet favorable reviews.

 

Thus, there are pluses and minuses to having a high share price.

Learn more: brainly.com/question/19717466

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Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. If the expected inflation rate falls from 20
romanna [79]

Answer:

Option A is correct ( Expected inflation does not change the real deficit)

Explanation:

Real deficits are real variable and it is not affected by the change in inflation rate, because inflation is nominal variable. So, nominal value of deficits can be affected, but real value of deficits will remain same.

4 0
2 years ago
In the case of dormant cracks wider than about 1m, it is more economical to use ____________
Bad White [126]

Answer:

B. Grouting

Explanation:

These are the options for the question;

A. Epoxy resin

B. Grouting

C. Tensioning

D. Ranging

In the case of dormant cracks wider than about 1m, it is more economical to use grouting method.

Grouting techniques is a techniques that is achieved by removal of dirt or unwanted substance from the crack of the the faulty part and then grouting of the crack after which the surface is sealed by sealants. It should be noted that grouting is economical than other methods such as surface treatment.

8 0
3 years ago
As a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of ________ advertisi
Nutka1998 [239]

Answer:

The answer is reminder

Explanation:

Reminder advertising is used by a known brand or firm to remind or to make them not to forget a product. Sometimes, additional benefits can be added to an already known product. Reminder advertising is essential here.

Reminder advertising is used to elongate the life-cycle of a product. Products in their maturity stage should be given additional benefits to be able to make them competitive.

4 0
3 years ago
Suppose the Fed carries out an open market sale of $100m and simultaneously decreases the minimum required reserve ratio from 10
andrey2020 [161]

Answer:

loanable amount after Fed operation = $950 M

Securities after fed operation = $50 M

attached below is the T-account table

Explanation:

Given data:

For assets : securities = $100 M ,  Loans = $800 M

For Liabilities :  Constant demand deposit = $1000 M

difference between the assets and liability = $100 M  and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action

How with the reserve ratio reduced to: 0.05

hence required  Minimum required securities after operation = 0.05 * 1000 M = 50 M

Note : Total demand deposits = securities + loanable amount

therefore loanable amount after Fed operation = $1000 M - $50 M = $950

Attached below is the T-table

When both tables are compared it can be seen that there is a significant increase  in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base

5 0
3 years ago
Suppose a country reduces restrictions on how many hours people can work. If reducing these restrictions increase the total numb
maks197457 [2]

Answer:

The correct answer is option c.

Explanation:

If the restrictions on working hours are removed such that keeping other factors constant, the total number of hours worked increases. This will cause the total output to increase.  

But the workers will not be able to work efficiently for longer hours. This will cause productivity to decline.  

This happens because working for long hours will make the workers tired. Their health is negatively impacted so their productivity will decline.

3 0
3 years ago
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