Using present value to calculate stock prices is ________ than using present value to calculate bond prices because ________
A) less accurate; coupon payments for bonds are known with certainty but dividend payments for stocks are not
B) more accurate; coupon payments for bonds are known with certainty but dividend payments for stocks are not
C) less accurate; dividend payments for stocks are known with certainty but coupon payments for bonds are not
D) more accurate; dividend payments for stocks are known with certainty but coupon payments for bonds are not
A
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What economic impact would the closing of a nearby military base have on a town? Would people and businesses that did not directly deal with the military personnel be affected?
What will be an ideal response?
All else constant, as the price elasticity of demand for a good at the equilibrium price decreases, the amount of consumer surplus derived from purchasing the equilibrium quantity of the good increases
Indicate whether the statement is true or false
When an economy is in long run equilibrium,
a. it will be impossible to sustain the current rate of output in the future. b. the interest rate will decline. c. the foreign exchange value of the dollar will tend to appreciate. d. the actual and natural rates of unemployment will be equal.
Firms that operate in competitive product markets and choose to practice discrimination in hiring workers
a. will survive if they increase production and garner a larger market share. b. will eventually earn zero economic profits. c. will survive as long as they are willing to have a smaller market share. d. are likely to eventually go out of business.