A firm might issue stock to
A. to increase its debt.
B. decrease the number of owners.
C. employ more people.
D. finance a capital project.
Answer: D
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Latin America has more trade agreements than any other region, and it has some of the oldest as well
Indicate whether the statement is true or false
Tombstones are produced in a monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600 . Its total variable cost is $2,000 . Its demand curve is downward sloping. Given this information, we know that
a. new firms will enter the market b. Rolling Stones loses $2,000 a week c. Rolling Stones makes an economic profit of $400 d. Rolling Stones makes an accounting profit of $100 e. Rolling Stones should increase production because with a downward-sloping demand curve, it will increase its economic profit
If the nominal interest rate is 4 percent and the expected inflation rate is 1 percent, the real interest rate is
A) 3 percent. B) 5 percent. C) 4 percent. D) 1.50 percent. E) 0.25 percent.
Suppose that Cambodia becomes the next popular tourist destination. You notice that hotels, restaurants, and other services cost much less there than in the United States. From the perspective of the U.S. dollar, what would be the real exchange rate of the Cambodian riel?
a) The real exchange rate would be 0. b) The real exchange rate would be 1. c) The real exchange rate would be greater than 1. d) The real exchange rate would be less than 1.