Capitulo 8
Páginas: 2 (450 palabras)
Publicado: 23 de abril de 2011
1. Explain why being a residual claimant makes stock ownership risky.
If the company runs into financial trouble, only after all other creditors have been paid what they are owed, the stockholderswill receive what is left.
2. Check the business section of a recent newspaper (or the Internet) to find the current level of each of the following indexes, along with their percentage change OVERTHE LAST 12 MONTHS.
a) Dow Jones Industrial Average
Current level: 11,118.49
Year to date increase: +6.62%
b) Standard & Poor's 500 Index
Current level: 11,083.26
Year to date increase: +6.11%c) Nasdaq Composite
Current level: 2,507.41
Year to date: +10.50%
d) Wilshire 5000
Current level: 12,489.09
Year to date: +8.14%
Where did you find this information?
www.cnnmoney.com
1)What are the four serious deficits facing the USA today?
Budget, Leadership, Savings and trade deficit.
2) In what year was the federal debt at zero?
1835
3) What President passed the modern incometax law and help organize the Federal Reserve? In what year did this take place?
It was Woodrow Willson in 1913.
4) What two key factors led to a serious economic downtown in the 1970's? How isthat similar in today's economy?
War and social spending.
We are fighting two wars now and discretionary spending is as high as it was during the same period if not higher.
5) Robert Rubin,secretary of the treasury from 1995-1999, discusses two tradeoff decisions in making sound fiscal policy. What are they and what are your thoughts on these trade offs?
The trade offs are spending on socialprograms and having tax cuts. The decision is what programs you want to keep and finding revenue to pay for them. I think that we can’t have tax increases during a recovery and we can’t continuespending without tax increases.
6) How many budget deficits have we experienced in our economy over the last 40 years?
On the last 40 years we had 35 budget deficits and only 5 surpluses.
7) Why...
If the company runs into financial trouble, only after all other creditors have been paid what they are owed, the stockholderswill receive what is left.
2. Check the business section of a recent newspaper (or the Internet) to find the current level of each of the following indexes, along with their percentage change OVERTHE LAST 12 MONTHS.
a) Dow Jones Industrial Average
Current level: 11,118.49
Year to date increase: +6.62%
b) Standard & Poor's 500 Index
Current level: 11,083.26
Year to date increase: +6.11%c) Nasdaq Composite
Current level: 2,507.41
Year to date: +10.50%
d) Wilshire 5000
Current level: 12,489.09
Year to date: +8.14%
Where did you find this information?
www.cnnmoney.com
1)What are the four serious deficits facing the USA today?
Budget, Leadership, Savings and trade deficit.
2) In what year was the federal debt at zero?
1835
3) What President passed the modern incometax law and help organize the Federal Reserve? In what year did this take place?
It was Woodrow Willson in 1913.
4) What two key factors led to a serious economic downtown in the 1970's? How isthat similar in today's economy?
War and social spending.
We are fighting two wars now and discretionary spending is as high as it was during the same period if not higher.
5) Robert Rubin,secretary of the treasury from 1995-1999, discusses two tradeoff decisions in making sound fiscal policy. What are they and what are your thoughts on these trade offs?
The trade offs are spending on socialprograms and having tax cuts. The decision is what programs you want to keep and finding revenue to pay for them. I think that we can’t have tax increases during a recovery and we can’t continuespending without tax increases.
6) How many budget deficits have we experienced in our economy over the last 40 years?
On the last 40 years we had 35 budget deficits and only 5 surpluses.
7) Why...
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