Question 1-2
What is a stock said to be equilibrium? Why might a stock at any point in time not be equilibrium?
A stock is in equilibrium when a stock’s actual market price is equal to its intrinsic value. A stock at any point in time not be equilibrium, because there is a change in the stock’s price.
Question 1-3
Suppose three honest individuals gave you their estimates of stock X’s intrinsic value. One person is your current roommate, the second person is a professional security analyst with an excellent reputation on Wall Street, and the third person is Company X’s CFO. If the three estimates differed, in which one would you have the most confidence? Why?
I would have the most confidence with the third person in Company X’s CFO, because Chief Financial officer in charge of accounting, finance, credit policy and investor
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Proprietorships have three advantages: they are easy and inexpensive to form, subject to few regulations, and no corporate income taxes. The disadvantages are difficult to raise capital, unlimited liability and limited life. Partnership are similar to proprietorships in that they can be stablished relatively easily and inexpensively. The partners are generally subject to unlimited personal liability, this makes it difficult for partnerships to raise large amount of capital. Corporation also have unlimited lives, and easy transfer of ownership, limited liability and ease of raising capital to operate larger businesses. The disadvantages are double taxation, the corporation’s earnings are taxed; and then when its after-tax earnings are paid out as dividends, those earnings are taxed again as personal income to the stockholders. Limited liability reduces the risks endure by investors; and other things held constant, the lower the firm’s risk, the higher its
This is where the quantity demanded and the quantity supplied are equal. The corresponding price is the equilibrium price and the quantity is the equilibrium quantity.
I graduated high school back in 1994. I was engaged to be married in just two years, and even though I joined the Pennsylvania Air National Guard right after graduation it was only one weekend a month and two weeks out of the year. So I needed a full-time job. A friend of the family knew a guy who was opening a second store, and was going to need a store manager. I took the job and got started. What I didn’t know was the guy I was just hired to work for was a little confused as to what he wanted. I hung onto the job for a little over a year hoping it would turn around but, no dice.
Responsiveness to Identified Needs: Standard is met when FPO assists in negotiating or clarifying appropriate performance and operational goals, as demonstrated in LMI grant activities such as, but not limited to, the following:
Since she has problems skipping a question and forgetting to check back over the test, I have personally gone back over my tests as many times as I’ve had time for. I’ve quadruple-checked several math tests because I have a fresh outlook when I come back to the question. Sometimes I check for mistakes and other times, my inspiration kicks in and I’m not stumped anymore. She should depend on her Sequence still, but perhaps lean towards one of its other characteristics, organizational objectives. Before she even goes into a test, take some breaths and break down in her head of what she’s going to do if she gets stumped. Go in with a game plan.
If a structure is in static equilibrium, then any portion or segment of it must also be in static equilibrium. With this
So when demand increases and a supply doesn’t change, a shift in price will happen. This shift will move to the right causing a new Equilibrium.
The meaning of static equilibrium can be explored by first examining the definition of equilibrium. Equilibrium means that an object is at rest or that the objects center of mass moves at constant velocity relative to the observer.
Principle states that if a changed is placed on a system at equilibrium, the position of equilibrium will shift in the opposite direction. It will shift in a direction to reduce the change. Concentration, temperature, and pressure all affect equilibrium. When concentration is is changed, the equilibrium constant, k, will not change, however the equilibrium position will shift. For example, if a component (reactant or product) is added to a reaction system at equilibrium,
The stock market works by increasing the value of stocks based upon multiple factors. One of the factors is company performance. The better the company is doing the more stocks will increase and vice versa. Another factor is the demand. The more demand the bigger the price and also vice versa. So to maximize the amount of money you get from a stock you need many people buying that stock and having the company do well.
Equilibrium is a state in a reaction in which both the reactants and the products are present in concentrations that are both constant, and will not change over time. This state results when the forward reaction is proceeding at the same rate as the reverse reaction. An example of this can be seen in the dissolution of Sodium Chloride in water. If the equilibrium equation NaCl(s) NaCl (aq) is used, we can see that the compound in the solid form is re-crystalizing at the same rate as the aqueous form is dissolving. There are 3 main disturbances that can alter equilibrium, a change in concentration of reactants or products, a change in temperature or a change in pressure. According to Le Chatelier’s principle, if any of these three is disturbed, the system compensates by shifting the equilibrium to either the left or the right. This can be seen in the equilibrium reactions associated with sea water. In the dissolution process of CO2 discussed before, not all of the CO2 molecules remain dissolved. A small amount react with the water to form carbonic acid (H2CO3), which can be seen in the equation CO2 (aq) + H2O H2CO3 (aq). As carbonic acid is a weak acid, it can dissociate to bicarbonate or carbonate. These two equations respectfully are H2CO3 (aq H+ (aq) + HCO3- (aq),
Equilibrium is when a reaction ratio becomes unbalanced. In the reaction, it does not affect the outcome if the reactants like chromate & hydrogen chloride are not equal to the product water, dichromate, and chloride ion. As long as the reaction maintains the same ratio it won't matter if it's a forward or reverse reaction.
Chemical equilibrium is the state in which the forward rate of an reaction equals the backward rate of the reaction. Le Chateliers principle is an observation about the chemical equilibrium of reversible reactions. This law states that changes in temperature, pressure or volume will result in opposite changes to system to achieve a new equilibrium state.
One example that he gives is that of student ratios at Harvard University. Schelling discusses how men and women distribute themselves between dining halls that contain different ratios of sexes. He explains that if the women were spread equally between each room, the men would naturally create a 50:50 ratio. As men continually arrive, a 40:35 ratio quickly escalates into one overcrowded dining hall and one practically empty hall. This extreme escalation occurs due to the comfort found in equilibria. “The room with more men is always more attractive, even though both become less attractive as men migrate to the more attractive ratio” (38). This example proves the neutrality of equilibrium. A state of equal numbers in each dining hall doesn’t make eating better or worse. The choice that each student made to reach, or in this case destroy, equilibria, was for personal pleasure, not for the benefit of the whole. Through this example, Schelling demonstrates how events naturally fall to an impartial
Dynamic Equilibrium: Two offsetting processes occur at equal rates, producing a state of balance where no net changes is observed.
According to Nellis & Parker (2006), the short run equilibrium occurs when profits are maximised. This may occur when the market price equates the quantity demanded to the total quantity supplied by the given number of organisations in the industry. It can also be further defined as the output associated with the condition that marginal revenue equals marginal cost, i.e. MR = MC. (Nellis and Parker 2006)