How expectations are formed is important because expectations influence

A) the demand for assets.
B) bond prices.
C) the risk structure of interest rates.
D) the term structure of interest rates.
E) all of the above.


E

Business

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The tendency of a group to settle on a decision that is "good enough" is called   

A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. pseudo-optimization.

Business

Which of the following is/are true about holding gains on assets?

a. U.S. GAAP recognizes the holding gain on the assets for the increase in values. b. IFRS permits recognition of the holding gains under certain circumstances. c. Under IFRS, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period. d. Under U.S. GAAP, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period. e. all of the above

Business

To eliminate minority interests, which of the following are sometimes used to take a publicly held corporation private?

a. Conversion. b. Domestication. c. Cash-out combinations. d. All of these.

Business

Last year Wei Guan Inc. had $625 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets?

A. $316.35 B. $302.88 C. $289.42 D. $400.48 E. $336.54

Business