External link to Question : Multiple Choice Questions 31. A firm expected to generate $1.5 million in : 1284358

Question : Multiple Choice Questions 31. A firm expected to generate $1.5 million in : 1284358

  Multiple Choice Questions   31. A firm is expected to generate $1.5 million in operating income and pay $250,000 in interest. Ignoring taxes, this will generate $12.50 earnings per share. What will happen to EPS if operating income increases to $2.0 million?  A. EPS increase to $15.63. B. EPS increase to $16.67. C. EPS increase to $17.50. D. EPS increase to $20.00. 32. A firm issues 100,000 equity shares with […]

External link to Question : 31) The marginal cost incurred by the entire society to : 1238652

Question : 31) The marginal cost incurred by the entire society to : 1238652

  31) The marginal cost incurred by the entire society to produce a good or service is the A) marginal external cost. B) marginal private cost. C) marginal social cost. D) marginal social benefit. E) marginal private benefit. 32) Marginal social cost is equal to A) the amount people who buy a product pay for another unit. B) whatever producers have to pay to produce […]

External link to Question : 31) The purchase by a foreign government of an airplane : 1266889

Question : 31) The purchase by a foreign government of an airplane : 1266889

  31) The purchase by a foreign government of an airplane produced in the United States is included in U.S. A) consumption expenditures. B) investment expenditures. C) government purchases. D) net exports. 32) In 2011, Kendall Ford, an automobile dealership, spent $20,000 on a new car lift for its repair shop, $2,000 on a new copy machine for its sales division, and $600,000 on Ford […]

External link to Question : 31) During the past two decades, the world economic environment : 1353266

Question : 31) During the past two decades, the world economic environment : 1353266

  31) During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become “uncoupled” from employment. C) the world economy dominates the scene. D) the struggle between capitalism and […]

External link to Question : 11) In the above table, for Mary the opportunity cost : 1238971

Question : 11) In the above table, for Mary the opportunity cost : 1238971

  11) In the above table, for Mary the opportunity cost of producing a dress is ________, and the opportunity cost for Mark of producing a dress is ________. A) 1 1/2 jackets; 2/3 of a jacket B) 1 1/2 jackets; 2 1/2 jackets C) 1 1/4 jackets; 1/2 of a jacket D) 1 jacket; 1 jacket E) 1 dress; 1 dress 12) A country […]

External link to Question : 71) OPEC can be considered as a “cartel” which a : 1353314

Question : 71) OPEC can be considered as a “cartel” which a : 1353314

  71) OPEC can be considered as a “cartel” which is a group of separate companies that collectively: A) sets prices, controls output, or takes other actions to maximize profits. B) dictates how other countries should use their products. C) produces more products in order to beat the competition. D) conducts activities that are considered illegal in the United States. E) works on forming a […]

External link to Question : 41.Wheneverthepriceofanassetrisesabovewhatappearstobeitsfundamentalvalue,themarketissaidtobeexperiencinga a.conjecturalmistake. b.fundamentalmishap. c.speculativebubble. : 1261875

Question : 41.Wheneverthepriceofanassetrisesabovewhatappearstobeitsfundamentalvalue,themarketissaidtobeexperiencinga a.conjecturalmistake. b.fundamentalmishap. c.speculativebubble. : 1261875

  41.Wheneverthepriceofanassetrisesabovewhatappearstobeitsfundamentalvalue,themarketissaidtobeexperiencinga a.conjecturalmistake. b.fundamentalmishap. c.speculativebubble. d.temporaryinefficiency. 42.Whichofthefollowingtermsisusedtodescribeasituationinwhichthepriceofanassetrisesabovewhatappearstobeitsfundamentalvalue? a.“randomwalk” b.“randombubble” c.“speculativebubble” d.“speculativehedge” 43.Anassetmarketissaidtoexperienceaspeculativebubblewhen a.thepriceoftheassetrisesabovewhatappearstobeitsfundamentalvalue. b.thepriceoftheassetappearstofollowarandomwalk. c.themarketcannotestablishanequilibriumpricefortheasset. d.theassetisanaturalresourceanditssupplyismanipulatedbyforeignnationsandforeignfirms. 44.Thepossibilityofspeculativebubblesinthestockmarketarisesinpartbecause a.stockpricesmaynotdependatallonpsychologicalfactors. b.fundamentalanalysismaybethecorrectwaytoevaluatethevalueofstocks. c.futurestreamsofdividendpaymentsareveryhardtoestimate. d.thevalueofsharesofstockdependsnotonlyonthefuturestreamofdividendpaymentsbutalsoonthepriceatwhichthestockwillbesold. 45.Ifassetmarketsaredrivenbythe“animalspirits”ofinvestors,then a.thosemarketsreflectrationalbehavior. b.thosemarketsreflectirrationalbehavior. c.theefficientmarketshypothesisiscorrect. d.thestockmarketexhibitsinformationalefficiency. 46.Diversification a.increasesthelikelyfluctuationinaportfolio’sreturn.Thus,thelikelystandarddeviationoftheportfolio’sreturnishigher. b.increasesthelikelyfluctuationinaportfolio’sreturn.Thus,thelikelystandarddeviationoftheportfolio’sreturnislower. c.reducesthelikelyfluctuationinaportfolio’sreturn.Thus,thelikelystandarddeviationoftheportfolio’sreturnishigher. d.reducesthelikelyfluctuationinaportfolio’sreturn.Thus,thelikelystandarddeviationoftheportfolio’sreturnislower. 47.Thevalueofastockisbasedonthe a.presentvaluesofthedividendstreamandfinalprice.Asaresult,thevalueofastockriseswheninterestratesrise. b.presentvaluesofthedividendstreamandfinalprice.Asaresult,thevalueofastockfallswheninterestratesrise. c.futurevaluesofthedividendstreamandfinalprice.Asaresult,thevalueofastockriseswheninterestratesrises. d.futurevaluesofthedividendstreamandfinalprice.Asaresult,thevalueofastockfallswheninterestratesrise. 48.Supposethatanincreasedriskofmortgagedefaultslowerstheexpectedprofitabilityofbanks.Thenwewouldexpecttosee a.thedemandforbankstocksrisewhichwouldraisethepricesofbankstocks. b.thedemandforbankstocksrisewhichwouldreducethepricesofbankstocks. c.thedemandforbankstocksfallwhichwouldraisethepricesofbankstocks. d.thedemandforbankstocksfallwhichwouldreducethepricesofbankstocks. 49.Anautomobilemanufacturerunexpectedlyannouncesthatithashiredanewchiefexecutiveofficer.Itiswidelybelievedthatthepresenceofthisindividualwillraisetheprofitabilityofthecorporation.Atthesametimeinterestratesunexpectedlyrise.Whichoftheabovewouldtendtomakethepriceofthestockrise? a.theannouncementandtheriseininterestrates b.theannouncementbutnottheriseininterestrates c.theriseininterestrates,butnottheannouncement d.neithertheannouncementnortheriseininterestrates 50.Theefficientmarketshypothesisimplies a.thatallstocksarefairlyvaluedallthetimeandthatnostockisabetterbuythananyother. b.thatallstocksarefairlyvaluedallthetime,butthatsomestocksmaybebetterbuysthanother. c.thatsomestocksmaybebetterbuysthanothersandstockexpertscandeterminewhichones. d.thatnostockisefficientlyvalued.    

External link to Question : 61) If the Fed lowers the federal funds rate, eventually : 1228022

Question : 61) If the Fed lowers the federal funds rate, eventually : 1228022

    61) If the Fed lowers the federal funds rate, eventually the A) AD curve shifts leftward, decreasing real GDP and raising the price level. B) AS curve shifts leftward, decreasing real GDP and raising the price level. C) AD curve shifts rightward, increasing real GDP and raising the price level. D) AD curve shifts leftward, decreasing real GDP and lowering the price level. […]

External link to Question : 51) The monetary base the sum of A) Federal Reserve notes : 1240445

Question : 51) The monetary base the sum of A) Federal Reserve notes : 1240445

    51) The monetary base is the sum of A) Federal Reserve notes and banks’ reserves at the Fed. B) coins, Federal Reserve notes, and individuals’ deposits at the Fed. C) Federal Reserve notes, Treasury deposits at the Fed, banks’ reserves at the Fed, and coins. D) coins, Federal Reserve notes, and banks’ reserves at the Fed. E) coins, Federal Reserve notes, and gold […]

External link to Question : EXERCISES 153.APC Service’s copy department, which does almost all of the : 1302774

Question : EXERCISES 153.APC Service’s copy department, which does almost all of the : 1302774

  EXERCISES   153.APC Service’s copy department, which does almost all of the photocopying for the sales and administrative departments, budgets the following costs for the year, based on the expected activity of 4,000,000 copies:   Salaries              $90,000 Employee benefits for salaried employees              10,000 Depreciation of copy machines              10,000 Utilities (fixed)              5,000 Paper (variable, 1 cent per copy)              40,000 Toner (variable, 1 cent per copy)              […]

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