Investments that are specific to a relationship (i.e. of lower value elsewhere) are considered risky and require:
a. an enforceable contract.
b. an efficient spot market.
c. high rates of return.
d. verbal commitments.
A
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A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to maturity of
A) 3 percent. B) 20 percent. C) 25 percent. D) 33.3 percent.
Cross-price elasticity of demand is a measure of the extent to which a change in the price of one good can shift the quantity demanded for another good
a. True b. False Indicate whether the statement is true or false
In the United States, Texas ranks number one in the amount of installed megawatts for wind power generation and Florida ranks number one in the number of beach vacations. These facts point out that
A) Texas has a comparative advantage in wind power generation. B) Texas definitely has an absolute advantage in wind power generation. C) Florida should produce more wind energy. D) Florida can produce wind energy at a lower opportunity cost than can Texas.
Equity holders are a corporation's ________. That means the corporation must pay all of its debt holders before it pays its equity holders
A) debtors B) brokers C) residual claimants D) underwriters