please answer the question correct:
Explain fully, with examples, what dollar cost averaging is. What will happen (1) if the price of an investment trends down overtime; (2) trends up; (3) trends down then up; and (4) in real life? Use excel to model and graph the result.
In: Finance
If a firm starts losing money due to increase in competitive market pressure and the business outlook remains grim, then should it always shut down to stop further losses? Explain the answer in detail. What condition must be true for the firm to be always forced to shut down in the short run?
In: Economics
In: Economics
In terms of supply and demand in economics how does the Public Option under the Affordable Care Act affect the markets of healthcare?
Does supply go down and demand go up if more people become insured? Will costs go down if the Public Option strives to lower costs?
In: Economics
3. Dividend policy
A firm’s value depends on its expected free cash flow and its cost of capital. Distributions made in the form of dividends or stock repurchases impact the firm’s value and the investors in different ways.
Suppose a firm generates a lot of cash but has limited investment opportunities. Is this stock more likely to be a utility stock or a technology stock? In addition, is the stock more likely to provide a high or low dividend yield?
A utility stock that has a high dividend yield
A utility stock that has a low dividend yield
A technology stock that has a low dividend yield
A technology stock that has a high dividend yield
Modigliani and Miller argued that each shareholder can construct his or her own dividend policy. This statement is:
False
True
Modigliani and Miller also pointed out that many institutional investors do not pay taxes and can buy and sell stocks with very low transaction costs. For these investors, dividend policy is relevant than it is for an individual investor.
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon.
In some cases, analysts notice that groups of similar investors tend to flock to stocks that have dividend policies consistent with their needs. This circumstance is an illustration of:
The clientele effect
The information content effect
In: Finance
Hello, Im having trouble understanding the graphing/chart section of this lesson. Is there anyone who can help me understand?
| Goods | A | B | C | D | E | F |
| Capital | 5 | 4 | 3 | 2 | 1 | 0 |
| Consumer | 0 | 5 | 9 | 12 | 14 | 15 |
(presentation as a table rather than as a graph)
1. Using the above PPTable, if the economy is producing at alternative D, the opportunity cost of producing one more unit of capital is
|
A. 1 unit of consumer goods. |
|
|
B. |
2 units of consumer goods |
|
C |
3 units of consumer goods |
|
D |
none of the above |
2. Compared to alternative D in the above table, the choice of alternative C would
|
A |
increase future economic growth. |
|
B |
not affect future economic growth. |
|
C |
decrease future economic growth |
|
D |
none of the above |
3. A total output of 3 units of capital and 4 units of consumer goods in the above table
|
A |
is not possible. |
|
B |
results in maximum possible production for the economy |
|
C |
is an inefficient use of available resources and technology |
|
D |
none of the above. |
4. In the above table, for the economy to produce a total output of 3 units of capital goods and 13 units of consumer goods, it must
|
A |
use the available resources and technology more efficiently. |
|
B |
have additional resources or higher level of technology. |
|
C |
reach full employment. |
|
D |
none of the above. |
In: Economics
Long-run economic growth is generally positive rather than negative because long-run changes in output are driven by changes in the:
| LRAS, including changes in consumption, investment and net exports. | |
| LRAS, including changes in labour, capital, and technology. | |
| aggregate demand, including changes in labour, capital, and technology. | |
| SRAS, including changes in labour, capital, and technology. |
When consumer confidence falls, in the short run:
| aggregate supply will shift to the left, reducing equilibrium GDP and price level; but in the long run, the lower price level resulting from reduced aggregate supply will lower costs, increasing aggregate demand and shifting it to the right. | |
| aggregate demand will shift to the right, increasing equilibrium GDP and price level; but in the long run, the higher price level resulting from increased aggregate demand will increase costs, decreasing aggregate supply and shifting it to the left. | |
| aggregate supply will shift to the right, increasing equilibrium GDP and price level; but in the long run, the higher price level resulting from increased aggregate supply will increase costs, decreasing aggregate demand and shifting it to the left. | |
| aggregate demand will shift to the left, reducing equilibrium GDP and price level; but in the long run, the lower price level resulting from reduced aggregate demand will lower costs, increasing aggregate supply and shifting it to the right. |
In: Economics
1) As a Team answer the following questions:
One of the new key behaviours at Ace Technology is to ‘Work as a team with a high degree of mutual respect and collaboration’. Using what you’ve learned about groups and teamwork:Part of your grade will also be assessed on your ability to work as members of a team. This will allow you to build on learnings from this and previous courses. Include a brief team assessment section which details who did what. In other words, quantify each team member’s contribution to the project. Describe how you worked as a team. Also, include the research that each team member contributed.
I just need introduction and conclusion well organized full page for each. please and thank you.!
In: Accounting
PowerAir Inc., a subsidiary of a successful multinational manufacturing firm, supplies a key component in the assembly of residential air conditioning units. At this current stage, there are only five suppliers of this particular component, with these suppliers accounting for close to 80 percent of worldwide industry sales. On the retail side of the equation, well-known residential air conditioning units like Carrier and Trane retain a strong foothold in terms of retail sales. However, some newer Asian manufacturers have signaled an interest in more aggressively pursuing the lucrative international market. PowerAir Inc. is presently considering a $300 million dollar investment in a new plant, which will create a component that is much quieter, more efficient, and is likely to satisfy future regulatory standards. While the core technology for the new component is very old, PowerAir’s engineering and design skills have allowed them to retain their low cost advantage, even though the component will represent a significant improvement over products currently provided by its competition.
Question 2. PowerAir Inc. have also asked that you develop an argument as to why PowerAir should hold back and be a second mover with the new technology (ie. not to proceed with the investment, waiting to see if other competitors in the marketplace develop this new technology). Again, provide at least three reasons to PowerAir, arguing that it might be better to wait. Explain your reasoning in full.
In: Accounting
PowerAir Inc., a subsidiary of a successful multinational manufacturing firm, supplies a key component in the assembly of residential air conditioning units. At this current stage, there are only five suppliers of this particular component, with these suppliers accounting for close to 80 percent of worldwide industry sales. On the retail side of the equation, well-known residential air conditioning units like Carrier and Trane retain a strong foothold in terms of retail sales. However, some newer Asian manufacturers have signaled an interest in more aggressively pursuing the lucrative international market. PowerAir Inc. is presently considering a $300 million dollar investment in a new plant, which will create a component that is much quieter, more efficient, and is likely to satisfy future regulatory standards. While the core technology for the new component is very old, PowerAir’s engineering and design skills have allowed them to retain their low cost advantage, even though the component will represent a significant improvement over products currently provided by its competition.
Question 2.
PowerAir Inc. have also asked that you develop an argument as to why PowerAir should hold back and be a second mover with the new technology (ie. not to proceed with the investment, waiting to see if other competitors in the marketplace develop this new technology). Again, provide at least three reasons to PowerAir, arguing that it might be better to wait. Explain your reasoning in full.
In: Accounting