When she is not fired annually

Assignment Help Financial Management

Reference no: EM131190709

Your professor is paid only nine months out of the year (really!!). Suppose that she were fired each spring and rehired each fall, and thereby be eligible for unemployment insurance benefits. (After all, all those students going away for the summer creates economic hardship for your university!)

Do you think that would affect her consumption smoothing over the year, relative to what she does right now, when she is not fired annually? Explain your answer.

Reference no: EM131190709

Questions Cloud

Effect evidence of inefficient markets : (1) The momentum effect is one of the puzzling phenomena in empirical finance; (2) Fama and French argue that this effect can be explained as a manifestation of risk premium; and, (3) However, others disagree and argue that this effect evidence of..

Why government mandate individuals to purchase insurance : Why does the government mandate individuals to purchase their own insurance in some cases-such as automobile liability insurance-but directly provide insurance to people in other situations- such as health insurance?

Difference between capital structure and capital budgeting : What is the difference between capital structure and capital budgeting? Explain and give an example of a capital structure decision and an example of a capital budgeting decision.

Journal entries to record the exchange on the books : Larkspur Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for similar equipment used in the operations of Cullumber Company. Prepare the journal entries to record the exchange on the books of both companies. Assume..

When she is not fired annually : Do you think that would affect her consumption smoothing over the year, relative to what she does right now, when she is not fired annually?

What is the maximum price : What is the maximum price you should be willing to pay for rental property you expect to be worth $1,000,000 in 10 years and generates rental income of $90,000 annually (at the end of each year)? Your cost of funds is 15%.

Annuity with a guaranteed return : Meg's pension plan is an annuity with a guaranteed return of 3% per year (compounded quarterly). She would like to retire with a pension of $50,000 per quarter for 10 years. If she works 26 years before retiring, how much money must she and her em..

Share are issued in exchange for land and buildings : Below are transactions related to Wildhorse Company. (a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be $77,750. (b) 13,000 shares of common stock with a par value of $52 pe..

Estimate the stock price : Evermoon, Inc. stock is expected to pay dividends totaling $12 per year for five years and be sold for $150 at the end of the fifth year. Estimate the stock's price

User Account

All Pages