Which of the following is true?
a. Most stockholders own stock because they want to run the business.
b. The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future.
c. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
d. Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
D
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The price for tickets of a sold-out event increase by 30% but quantity sold remains unchanged. The price elasticity of demand equals
A) 0. B) 1. C) infinity. D) Cannot be determined.
Which of the following statements describes the most likely effect of cutting taxes?
a. Cutting taxes would effectively raise the hourly wage, so it would encourage people to work more. b. Cutting taxes would effectively lower the hourly wage, so it would require people to work more to maintain their standard of living. c. People work either 20 hours or 40 hours per week, regardless of hourly wage, so cutting taxes would have no effect. d. Some people might work more hours, but others will not or will not be able to.
When British soldiers in German prisoner of war camps during World War I smoked the best cigarettes and used the low-quality ones as money, they were obeying
a. Gresham's law that says bad money drives out good money b. Gresham's law that says good money drives out bad money c. the classical law that says bad money drives out good money d. the classical law that says velocity affects money e. Weldon's law that says velocity affects money
Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to the dollar. In this situation, the dollar has _________________, making Japanese goods __________ expensive for Americans
A) appreciated; less B) appreciated; more C) depreciated; less D) depreciated; more