Correspondence principle means

Assignment Help Financial Management
Reference no: EM131075780

Correspondence principle means:

A. That the jurisdiction extent of a government making decisions about an activity should match the geographic extent of benefits spillover from that activity.

B. That you should write your parents if you expect them to send you money.

C. That legislators spending state money ought to raise that money from current taxes.

D. That new public debt will burden future economic activity in an amount exactly equal to its current cost.

Reference no: EM131075780

Questions Cloud

Discuss the legal issues raised by ians situation : Discuss the legal issues raised by Ian's situation. Ians sister is requesting information from counselor - What are the implications of these legal issues regarding the choices.
Perform two-parameter sensitivity analysis : An investment of $1.5 million is made at time zero with annual revenues of $600,000 in year 1, growing at a rate of 15% annually over a seven-year horizon. There is uncertainty about the estimates of the revenues and the salvage therefore you are ask..
Determining the actual and prospective costs : A financial measure that evaluates the efficiency of an investment by determining the actual and prospective costs and benefits over time
Correspondence principle means : Correspondence principle means:
What price will the stock reach equilibrium : A share of stock with a beta of .81 now sells for $69. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 4%, and the market risk premium is 7%. Suppose investors believe the stock will sell for $71 at year-end. Is the st..
Current status of hrm through : A tool for organizations to diagnose the current status of HRM through assessing HR policies and the degree to which they fit organizational strategies.
Definition of genocide under international law : The topic is The definition of genocide under international law: ambiguity surrounding the interpretations of the legal duty to ''prevent''
Zero-coupon currency bond maturing at time : The variable S is an investment asset providing income at the rate q measured in currency A and it follows the process: dS = mu(subscript S)Sdt + sigma(subscript S)Sdz In the real world. Defining new variables as necessary, give the process followed ..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the return on the bond

The price of a bond with 4% annual coupon and $100 face value in year T is $90. Is the yield to maturity greater than, the same, or less than to the annual coupon rate? Explain in one sentence. Calculate the current yield in period T. Calculate the r..

  Dividend growth model

This week's readings introduce a method of valuing a company's stock called the Dividend Growth model, which bases a company's valuation on several factors, starting with a company's expected dividend payout and growth rate. What does a company's div..

  Calculate the call value of owens corning warrants

When Owens Corning emerged from bankruptcy in 2006, the debt holders became the sole owners of the company. But the old stockholders were not left entirely empty handed. They were given warrants to buy the new common stock at any point in the next se..

  Capital budgeting is one of the main analysis

Capital budgeting is one of the main analysis that is done by companies to introduce a new product into the market. For example, Porsche was one of the last manufacturers to enter the sports utility vehicle market. Why one would company decide to pro..

  Does put-call parity mean the put and the call option

Does put-call parity mean the put and the call option (of the same stock, with same expiration, with same strike price) have the same value/price? A European call option and a European put option on a stock both have the same strike price of $45 and ..

  Strategy-market-competitive technology and regulatory

Financial analysis of your chosen company AMAZON selected in Module 2. Following the nine-step assessment process introduced below and detailed in Assessing a Company’s Future Financial Health: Analysis of fundamentals: goals, strategy, market, compe..

  Which is closest to its capitalized cost

A new machine costs $30,000, and as operating costs of $5,000 per year. Its salvage value after its 7-year life is $8,000. Assuming an interest rate of 10% per year, which of the following is closest to its capitalized cost?

  Net new investment in operating capital-no interest expense

Juicers Inc. is thinking of acquiring Fast Fruit Company. Juicers expects Fast Fruit's NOPAT to be $9 million the first year, with no net new investment in operating capital and no interest expense. For the second year, Fast Fruit is expected to have..

  Explain process for calculating beta and the inputs

As of early September 2010, Wal-Mart's (WMT) beta is 0.33 and Target Stores (TGT) beta is 1.02. Discuss the meaning of these two betas, analytically, by briefly setting forth the process for calculating beta and the inputs to the calculations wher..

  Conventional departmental organization by function

Production starts in the drilling department, where each fitting requires an average of one minute on a CNC machine. Because of the length of time required to set up a CNC machine to produce a certain model, the fittings are produced in batches of 2,..

  What is pretax cost of debt for firm-aftertax cost of debt

The weighted-average cost of capital for a firm with a 65/35 debt/equity split, 8% pre-tax cost of debt, 15% cost of equity, and a 35% tax rate would be: What is the pretax cost of debt for a firm in the 35% tax bracket that has a 10% aftertax cost o..

  Company imports computer motherboards

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2855 S$/US$. You have just placed an order for 24,000 motherboards at a cost to you of 231.00 Singapore dollars each. You will pay for the shipment wh..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd