Owners of a corporation share in the profits of the firm
A) through dividend payments on shares of that firm's stock.
B) by raising the interest rate on bonds.
C) through coupon payments on that firm's bonds.
D) by selling any bonds or stocks owned and realizing a capital gain.
A
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Mutual funds, pension plans, and life insurance policies:
A. are all forms of savings. B. differ regarding when you can have access to the asset's worth. C. all entrust a professional to decide which financial assets are the best for the saver to hold. D. All of these are true.
Assuming that investment, government expenditures, and net exports are all autonomous, the marginal propensity to consume for the economy represented in Figure 9.9 is
A. 0.25. B. 1.0 since aggregate expenditure is a straight line. C. 0.5. D. Indeterminate since there is no consumption function.
When playing a game, a mixed strategy refers to
A) randomly selecting a strategy. B) consistently alternating between two strategies each time a game is played. C) never playing the same strategy twice in a row. D) never playing the same strategy more than once.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is the market price in the Nash equilibrium?
A. $80 B. $86.67 C. $100 D. $93.34