Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0•(shares outstanding) = ??t=1 (? t ) / (1+ke)t + Real Option Value
a. Decrease the required rate of return (ke).
b. Decrease the stream of profits (?t).
c. Decrease the number of periods from ? to 10 periods.
d. Decrease the real option value.
e. All of the above.
a
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Figure 11-2
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In Figure 11-2, which movement would represent an improvement for all individuals?
A. A to B B. C to AC C. D to B D. A to D
If a nation merges its currency with another nation to create a single currency, what must it give up?
a. the ability to purchase currency in foreign exchange markets b. the ability to determine its own nationally-oriented monetary policy c. the ability to fight recessions and control inflations d. the ability to sell currency in foreign exchange markets
Consider a labor market that is initially in equilibrium. When the labor demand curve shifts to the left while the labor supply curve remains unchanged, the: a. equilibrium wage rate increases
b. price of the output that uses this labor resource increases. c. equilibrium number of workers hired increases. d. equilibrium wage rate falls.
Which of the following sequence of events follows an open market sale by the Fed?
A. r? ? I? ? AE? ? Y? B. r? ? I? ? AE? ? Y? C. r? ? I? ? AE? ? Y? D. r? ? I? ? AE? ? Y?