Among the disadvantages of financing through stock is that
a. the issuance of bonds or commercial paper provides a predictable fixed cost for repayment in contrast to stocks, which represent a stake in the company's future profits
b. the costs associated with issuing stocks and all ancillary activities can make issuing common stock more inexpensive than issuing preferred stocks or debt instruments
c. all investors see issuing new stock as a negative sign that the company has to sell more of itself in order to survive
d. all of these
e. none of these
d. all of these
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What makes a tax "efficient"? Describe the efficiency properties of a lump sum tax
Under what conditions might a regular unit tax approximate a lump-sum tax? List one trade-off facing policymakers in attempting to minimized the excess burden of taxation.
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at 200 units; the firm is earning $400 profit. e. Stay at 200 units; the firm is minimizing losses of $200.
Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely
a. have no impact on the level of real GDP per person. b. immediately and permanently decrease the level of real GDP per person. c. immediately and permanently increase the level of real GDP person. d. gradually raise the level of real GDP per person.
Refer to the graph below, where Sd and Dd are the domestic supply and demand for a product. The world price of the product is $6. What would be the difference in the total revenue received by foreign producers after a quota of 20 units is imposed compared with the total revenue received by foreign producers when a $4 per unit tariff is imposed?
A. $0 revenue difference
B. $80 more revenue with a quota than with a tariff
C. $200 more revenue with a quota than with a tariff
D. $120 more revenue with a tariff than with a quota