When the stock price is 20 and the present value of dividends is 2, which of the following is the recommended way of constructing a tree?
A. Draw a tree for an initial stock price of 20 and subtract the present value of future dividends at each node
B. Draw a tree for an initial stock price of 22 and subtract the present value of future dividends at each node
C. Draw a tree with an initial stock price of 18 and add the present value of future dividends at each node
D. Draw a tree with an initial stock price of 18 and add 2 at each node
C
We first subtract the present value of dividends from the initial stock price. We then draw the tree and then add back the present value of future dividends at each node
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Which of the following was a disadvantage of suing employers for negligence under common law?
A) Employees never won such cases. B) It was a time-consuming process that strained the employment relationship. C) Employees always won such cases as the common law was biased against employers. D) Heirs of deceased workers could not sue the employers.
________ are good for stable demand with no pronounced behavioral patterns
A) Longer-period moving averages B) Shorter-period moving averages C) Moving averages D) Weighted moving averages