Which of the following is correct?
a. Joan takes some of her income and buys mutual fund shares. Joan's purchase will be included in the investment category of GDP.
b. If a share of stock in Virtual Pizza Corporation sells for $77, the earnings per share are $5, and the dividend per share is $2, then the P/E ratio is 11.
c. In order to use equity finance, a firm must sell about equal values of stocks and bonds.
d. None of the above is correct.
d
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Consumer equilibrium occurs at:
a. any point of intersection between the budget line and an indifference curve. b. a point of tangency between the budget line and an indifference curve. c. the point where the slope of the indifference curve equals the ratio of the quantities. d. a point where the budget line cuts the curve from below.
According to the quantity theory of money, if velocity of money is constant, a 5 percent increase in money supply will lead to a 0.25 percent increase in nominal GDP
a. True b. False Indicate whether the statement is true or false
Other things being equal, the increase in rents that occurs after rent controls are abolished is smaller when:
A.rented homes and owned homes are substitutes. B. rented homes and owned homes are complements. C. the own price elasticity of demand for rental homes is price inelastic. D. the own price elasticity of demand for rental homes is price elastic. E. the own price elasticity of demand for rental homes has unitary price elasticity.
A 10-year Treasury note as a face value of $1,000, price of $1,200, and a 7.5% coupon rate. Based on this information, we know the:
A. coupon payment on this bond is equal to $90. B. current yield is equal to 8.33%. C. present value is greater than its price. D. coupon payment on this bond is equal to $75.