Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 8, Problem 2PA
To determine
Why companies promote workers to hold large number of stocks of their company but not workers.
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A company has announced a profit, but why is the price of stock still falling? Is the market inefficient? Explain.
Is maximizing a firm’s profits always identical to maximizing the firm’s stock market value?
Does owning a share of stock in a company makes you a major decision maker for that company?
Chapter 8 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
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- many people think that the interest rate on a bond tells them all they need to know about how well off they are as a result of owning it. Explain the statement.arrow_forwardSuppose that the initial dividend on a stock is £1. The interest rate is 3 percent and the growth rate of dividends is constant at 2 percent. What is the price of the stock?arrow_forwardThe price of a bond is.arrow_forward
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