Which of the following would increase the value of a firm's stock?
a. a decrease in the firm's present profit
b. a decrease in the anticipated growth rate of future profits
c. an increase in the perceived riskiness of future profits
d. a fall in the interest rate
e. an anticipated increase in the interest rate
D
You might also like to view...
When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to make any loans but to hold excess reserves instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $1 million. B) the liabilities of the bank decrease by $1 million. C) reserves increase by $200,000. D) liabilities increase by $200,000.
Public choice analysis
a. assumes individuals in the public sector act in their own self-interests. b. assumes individuals seek to serve the public interest rather than their own personal interests. c. is the study of decision making in the formation and operation of private organizations. d. assumes the government is a corrective device that takes the necessary action to offset economic inefficiency arising from market failure.