Suppose Charles would like to use $4,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab-a practice known as finance. Buying a share of TouchTech stock would give Charles ▼ the firm. In the event that Touch Tech runs into financial difficulty, ▼ will be paid first.

Consider a company JuiceStop who issues stocks to the public for the first time in 2022. JuiceStop provides two shares. During 2022, JuiceStop sells one of the two shares to Emily for $21,000. Later in the same year, Emily sells the share to Janet for $25,000. The second share, at a market value of $24,000, is sold to Jerome. JuiceStop uses all the funds that are financed via selling stocks to Emily and Jerome to purchase cutting-edge juicer mathines produced in the U.S. The transactions just described contribute how much to GDP for 2022? Briefly explain your answer.

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Q4. An individual with the utility function u(x) = x² owns her wealth of $20,000. An expected profit maximizing company (or risk neutral company) facing the individual can make expected profit greater than $ 19,900. True or False? Explain it. If it is true, show

A bond has a Macaulay duration of 10.00 and is priced to yield 8.0​%. If interest rates go up so that the yield goes to 8.5%​, what will be the percentage change in the price of the​ bond? Now, if the yield on this bond goes down to 7.5​%, what will be the​ bond's percentage change in​ price? Comment on your findings. If interest rates go up to 8.5​%, the percentage change in the price of the bond is nothing​%. ​(Round to two decimal​ places.) If interest rates go down to 7.5​%, the percentage change in the price of the bond is nothing​%. ​(Round to two decimal​ places.) Comment on your findings.  ​(Select the best answer​ below.)     A. As interest rates​ decrease, the price of the bond decreases. As interest rates​ increase, the price of the bond increases.   B. As interest rates increase or​ decrease, the price of the bond will always increase.   C. As interest rates increase or​ decrease, the price of the bond remains the same.   D. As interest rates​…

Ben is a retired budget auditor who is currently looking for a new investment opportunity. He is considering two investments: Calzone Zone, a small restaurant specialising in calzone, and Icetown, a skating and curling rink. The projected cash flows of the two investments are shown below. Ben can only choose one projects, so he asks for your help and advice in reaching a decision on which investment to accept. He tells you he requires a 5% rate of return on his investment. Calzone Icetown Zone Cash flows £000 £000 Initial investment (885) 150 (300) 215 Cash flows year 1 Cash flows year 2 Cash flows year 3 Cash flows year 4 Cash flows year 5 195 215 200 230 265 215 215 (585) Assume the initial investment arises at the start of the first year of the project and all the subsequent cash flows occur at the end of the year. Question A. What are the economic factors reflected in the required rate of return? Discuss the likely effects of the economic shock brought by the COVID-19 pandemic on…