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Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand.If the demand for bananas rises, a shortage is made at the original equilibrium price. The meaning of this is that there will be upward pressure on price. Since as price rises, quantity demanded falls and quantity supplied raises until the two are equal.
DQ #1: Discuss the challenges of VaR approaches in valuing risk. How does portfolio risk assessment differ from a single asset’s risk assessment? How do managers typically load ba
Q. Example On modigliani and miller approach? The subsequent is the data regarding two companies X and Y belonging to the same risk class: Company X
Generally, an interest rate or an interest rate index is used as a reference rate for However, through financial engineering, issuers have been able to construct
The minimum value is the lower limit for the market value of a convertible bond. It is equal to the greater of the conversion value and the straight value. We can
Define the concept of a real option. Discuss some real options a firm can be confronted with when investing in real projects. A positive APV project is accepted under the supposi
What are some of the factors that common stockholders consider when deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Gene
given just the sales and profit values, how is the break-even sales calculated?
need to understand some basics of changes in working capital
Trade credit is free credit. Do you agree or disagree with this statement? Explain. Trade credit isn't free. It has a value. Who bears that cost depends on the conditions o
ON THE BASIS OF FLEXIBILITY • Fixed budget: this is designed to stay unchanged irrespective of the volume of output or turnover attained. The budget remains unchanged over
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