If a corporation retains all its profits and distributes none of the profit to owners, how can owners benefit?
A) If the retained earnings are expected to create future profits, the market price of the firm's stock will increase and create a capital gain for stockholders if the stock is sold.
B) Shares of stock can be converted into bonds so stockholders will be able to earn coupon payments.
C) Owners will only benefit if some profits are paid out in the form of dividends.
D) Owners will benefit by changing the board of directors.
Answer: A
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Suppose that Rosa is considering migration to another country. To move, she will have to spend $5000 on transportation and $4000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's explicit cost of migrating is:
A. $9,000 B. $500,000 C. $507,000 D. $5,000
In the United States, the typical woman earns about ________ of what the typical man earns
A) 90% B) 80% C) 70% D) 50%
The entry of new firms into a perfectly competitive market shifts the demand curve outward
a. True b. False Indicate whether the statement is true or false
Unemployment that occurs when there is deficient demand for the goods and services of an economy is called:
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. natural unemployment.