Capital tends to flow into markets earning short-run profits and out of markets suffering short-term losses.
Answer the following statement true (T) or false (F)
True
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The United States produced approximately ________ worth of goods and services in 2011
A) $15 trillion B) $15 billion C) $150 trillion D) $150 billion E) $1,500 trillion
If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 14 percent, what is the most you can get for your old bond?
A) $903.51 B) $997.19 C) $1,000 D) $1,140
The price/earnings (PE) ratio of a stock is found by
a. dividing the most recent year's dividend by the current stock price b. dividing the current stock price by the after-tax profit per share c. dividing the most recent year's dividend by retained earnings d. dividing the current stock price by the Dow Jones Industrial Average e. dividing the current stock price by the present value of the firm
Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew $2,000 from her savings account, which was earning 3% interest, and borrowed an additional $4,000 from the bank at an interest rate of 7%. What is Gwen's annual opportunity cost of the financial capital that has been invested in the business?
a. $60 b. $280 c. $340 d. $660