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Explain what will happen while the government imposes a minimum price that is below the market equilibrium price. Why is this true?The minimum price will comprise no impact on the market. This is true since the price floor will just only have an impact when the market equilibrium price is below it. Companies and consumers will otherwise not change their behavior.
What is Creative accounting Creative accounting (also termed as aggressive accounting or earnings management) distorts financial analysis of company accounts. Creative accounti
Defined Contribution Plans In defined contribution plans, the contributions made by or on behalf of the employee are accumulated and paid on retirement along with such return a
a-ii, should i calculate the co-variance of the 30 securities?
The ability of a firm to satisfy its debt obligations can be assessed using three sets of ratios: Short-term solvency ratios Capitalization
What happens to the riskiness of a portfolio if assets with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk reli
What risks are associated with direct foreign investment? How do these risks differ from those encountered in domestic investment?
Deterministic Model After the macroeconomic, industrial and business analysis of the company chosen is done First of all a point estimate for all the input variables in a valua
Question : (a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Proj
What are the financial management problems Traditional approach was challenged was that the treatment was built too closely around episodic events, like incorporation, promotio
Normally, floater coupon rate moves in the same direction as the reference rate. That is, with an increase in the reference rate, the floater coupon rate also increases
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