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Benefits accruing to firm and regulator if regulator commits to fixed regulated price over number of years when firm not producing output at minimum cost?
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How can you know that the benefits to the economy from free trade are greater than the benefits accruing to the domestic industry that is protected from foreign competition?
You don't. China's GDP has been growing 10% every year for the last fifty years, while America's economy is crumbling. Free trade is like letting a bunch of kids drive a car.
Does inflation rob you of your savings?
Yes and no. If your "savings" are not in a savings account, then technically yes. This is because your savings will slowly lose its purchasing power as inflation happens (emphasis on slowly, you will only "lose" 1-5% annually unless inflation spikes in a bad way). If your savings is in a savings account and is accruing interest, then no. This is because the interest will make up for the inflation.
What is the explanation for the principle of maximum social advantage?
fghmarginal sacrifice are equal atg pointffh gfto point M, the social gain from public expenditure is gredgfaterghf hwhy is public financghhghe required than gfrom tfghaxes is greater than ghthe gain ghfrom public The theory of maximum social advantage is the fgSocial hprincipghlfhof maximum social ahdvantage pfggfhossesfdhses thghhe In other words, maximum fhfresult ghof two codhfghfghfghhfgfntragghfgdictory fd Different fh It is not be possible to compare the which tries to incrhfgjeasehgf it throughfgghexpenditure and the marginal benefits accruing to people in ghjghone area from a otheg hr which tries to decrease it through taxation. Thus social given public expenjtuhreghd with hfgthefgby persons who are taxed in some other area. public expenditure are npar e jgfgfthe advantage to the commu- 3. Differences in Standard of Livinghfghrevenue from shopkeeper and ajh gjhfgovernment employee. taxation to public expenditure by the state should continue up 4. Vague and abstract. The terms "benefit" and "sacrificefgthe vague andfgabhstract. It is not pofgle gfeasy. As put by Prof. Buchanan, than the sacrifice undergone by taxation. On the contrary, injhj "To matchf them is a function for the 'fiscal brain' or expenditure less tgan this point, the gaiggghfghfghfhnhg in utility would be computer." greater than the sacrifice from taxation. But the social advantage will not be g expenddhiture is increased to the 6. hj. There is the problem of calculating social point where the MU from a given publijhgjhjc expenditure equals the benefits from public expenditure on short period and lhgjhjhjgong marginal ghThis principle of maximum social advantage is explained periods. This is not an easy task. graphically in Fig. 1 in terms of Prof. Musgrave's diagram. Amounts of public hmarginal benefit along the horizontal axis, the marginal social benefit is mea- fromh0 upwards and tfghe marginal taxation, the resources are required to be divided into social fifice is measured below 0 on the vertgical axis. The smaller units. But it is not possible because of the lack of curve EE measures marginal social benefit to the society from divisibility of public ehjgjhjxpenditure and ftaxes to the government. The differ- consideration the sacrifice on the part of direct tax ghfdh-tax revenues. Non-tax revenues like fines, because EE is the gain to society from public expenditure and 1 fees, market borrowings, profits of public undertakings, etc. IT is the cost to society in the form of taxes paid. The net 1 are equally important as sources of revenue and in their sghjgfjhgjhghjgfjhghjocial advantagfghfge is shown by the NNghjj) curve. The marginal social effects on h,hgf the principle of maximum social hvantage is gfhthe best system of public finance", achjghjghjghcording to Dalton. 4. Objective Tests ofghmmunity against internal disorders and external attacks. The financial operations of the state to preserve the society in this jto Dalton, this can be achieved by improvements in g? hahaha you are stuffed up now
Is there a difference between corporate profit maximization and maximization of shareholder wealth?
Sure, profit maximization relates to profits *only* while shareholder wealth also involves total company equity, debt ratios and any of 15 other financial performance measure ratios. Management could focus on profit maximization over a longer period of time, say, 40 years (Toyota), while the shareholder would rather see stock values and corporate total value increase immediately (get in and get out) (90% of American manufacturers). If management focused on short-term profit maximization, say at the expense of long term sales revenues, then shareholder wealth (stock price) could actually decrease as a result of the loss of market share. The conflict of interests between shareholders and executives is an example of the "principle-agent problem."
Evolution of The field of Finance?
Today's Finance is still in its infancy as a science. The domain of what we know pales in comparison to what we actually know we don't know. For example, we know that our understanding of the basic mechanisms of asset valuation (stocks, real estate, gold) is limited, confused and non-operationalfor the most part. Who can tell and predict the value of stocks today? Investors are offered conflicting views (rational vs. irrational), quick recipes, and voodoo advice. The "pseudo" scientific mathematical models that are offered today, far from resolving real-world problems do revel in their own complexity in exchange for minor incremental learning. Below, I am addressing several outstanding issues in Finance. Let me give you a few examples of major unresolved issues:· The CAPM dead or alive? Over the last few decades one of the most prominent model of Finance called the CAPM has been under attack, not because its logical foundations are wrong or limited, but rather since it does not explain returns, the way it was intended to: higher contribution to systematic risk leads to higher returns. Noteworthy, is the French-Fama (1992) paper showing that price to book is a better predictor of stock returns than beta. Now, we can accept that an essentially static model created about 40 years ago can fall short of explaining reality. Maybe the reason is that we are not capturing expected returns properly. Recently, there have been new attempts to validate the model (for example showing that a form of inflation illusionhas an effect on the Beta-expected return relationship (Cohen, Polk and Vuolteenaho (2004)), or that the French-Fama result can be explained by incorporating leverage as a factor, thus rendering the beta effective again (Ferguson and Shockley (2003)). These results may be incrementally informative but it is important to know if the stream of new insights about CAPM is fundamental enough to repair the model.· Beta only a measure of risk? Beta measures the contribution of a single stock to market volatility. One of the confusing piece of language about it is that it is supposed to represent risk. However, in some instances it may rather represent growth. For example, since the stock market moves upward in the long-run, and market returns are positively serially correlated (low frequency data), then a high beta stock may in fact capture a boost to the average market return due to faster than normal growth (in earnings). The extra premium is not for risk but for growth. Here are some new views about redefining the standard CAPM model in terms of beta linked to downside risk (Kaplansky (2004) or Post and Van Vliet (2004)).· What about those macro-finance models? Since the static model has not done so well, what about the dynamic models? These have not fared better since the middle of the 1970's (essentially since the works of Merton (1973) and Lucas (1978). Both are Nobel laureates in Economics).· Valuation of stocks, anyone? The standard dividend discount model taught in our schools (and many variations on it) has not borne its fruits. Stock prices MUST be based on the present value of expected future cash flows accruing to investors (Warren Buffett concurs). The questions are: 1) Are these cash flows adequately represented by forecast dividends or proxies? 2) How do we account for expected price appreciation independently of future dividend proxies? 3) How can we narrow the choices for the right discount rate(s) and other inputs to apply to these models? Still, it appears that demand often forces prices to temporarily diverge from a present value calculation due possibly to "irrational exuberance", then 4) How fast does the reversion mechanism to fair value operate (if any)?· Is the stock market rational or irrational? This is a very confusing issue since the latest conventional wisdom is that the stock market is mostly irrational (Shiller 2001). In fact, it is probably a mixture: an undercurrent of fundamental value plus superimposed short-term deviations due to irrational behavior and/or news. Let us be careful though, one reason why markets are seen as irrational is that Finance has been unable to provide a logical/mathematical foundation to valuation since the current models have fallen short. Thus, our definition of "rational" is contained within the rationality of the models we have so far developed. The core guiding principle of investors' decisions may very well be founded on economic laws (systematic and reproducible) left to be discovered…· What are we (investors) to do? If markets are irrational what is there to learn about investing in stocks? Are we investors supposed to throw in the towel when there is no solid ground on which to make a stock investing decision? Maybe some investors can capitalize on the irrationality of other investors? (Contrarian trading: Am I irrational or is she?). On the other hand, you'll say there is always the motto of Value Investing: buy companies for which you understand the business model, scrutinize the financial statements, do they have a good cash position, low PEG, etc… There is no argument that these factors can contribute to good stock selection. More to the point though: an entire industry has sprung-up not necessarily caring about how stocks are truly valued. Yes, I'm talking about the mutual fund industry. How so? The industry creates portfolios with particular flavors: Growth oriented, Large caps, Small caps, Blends etc... The game in town is product differentiation and finding a market niche. A marketinggame! Since no one truly understands the pricing of stocks, mutual fund managers attract investors by promising to replicate 'good' past records, or to generate great returns based on the fund's investment style (an oxymoron). Since portfolios are turned over to dump losers and buy winners (often late), these outfits are not in the business of fully understanding stock valuation but rather in the business of maintaining or growing their fund participation by minimizing quarterly losses and riding the growth endemic to a capitalistic economy.· The (in)famous Equity Premium puzzle. The Equity Premium (EP) is the difference between the stock market return and a Treasury yield (also referred to as risk free rate). Now, if there were an equivalent to the speed of light in E = MC2, as applied to the valuation of most assets, this would be the EP. However, the EP is typically not constant over time. It is what economists call counter-cyclical: it rises during recessions and lowers during booms. Now, since stocks are riskier than bonds in the short-term, following the CAPM logic they should pay a higher return. Thus, the EP should be explained by risk avoidance. However, the current macro-economic and finance models are unable to confirm this intuition, since (not to bore you too much) the size of actual equity premium does not reconcile with what the models need to assume for the level of risk aversion in the economy. Recently, Bansal and Yaron (1994) have had some success in reconciling our economic models with the ctual size of the premium. However, their solution is a bit strange: in order for their result to hold investors have to be worried about minute variations in long-term GDP growth, by an order of few basis points (1% of 1%)!· Stock returns that compound faster than economic growth? No kidding! Current theories accept that compound equity returns have been around 11% nominal in the long-run. This far outpaces the nominal GDP growth of the US economy about 6.5%. Imagine a savings account paying 11% when the bank's profits only grow at 6.5%… Why are current theories endorsing this result? Well, the key to this gap is that the equity compounded return calculation assumes that dividends are fully reinvested period after period. A single investor may be able to do this for a while as he/she can increase their market share, but since aggregate stock wealth cannot grow faster than GDP in the long-run, all investors at large cannot do that. The pricing of stocks must incorporate a relationship to feasible wealth compounding. Right now, the current theories do not link returns to GDP growth in a convincing manner.· Loving or fighting the Fed model. The Fed model (Orphanides and al. (1997)) is highly controversial. Many practitioners love it (see Dr. Yardeni's page); academic pundits hate it (Asness (2003)). The Fed model is the result of a discovery that the SP 500 forward earnings yield is highly correlated with the 10- year Treasury yield, since the 1970s. This is the best working model we have for the SP 500. Academics believe the model is logically flawed, based on thinking that the earnings yield is a real rate of return. Yes sure, how can you compare a real rate to a nominal yield? Since the Fed model is flawed, the observed correlation must be a fluke and since reality violates our current accepted theories, then reality must be wrong! (This is an actual quotation!) Well, try to tell that to practitioners! We must attempt to better understand why the Fed model works.We need to view ourselves much more like engineers or physicians, in our capacity as social scientists. We are living in exciting times, the science is young, the questions are still open, novel thinking and scientific breakthroughs await us.Dr. Christophe Faugere is an Associate Professor of Finance at University at Albany School of Business Chair of the Finance Department. His research attempts at solving some of the challenging issues presented above. Please visit his website at wwww.albany.edu/~faugere.
When can you stop paying interest on back child support?
If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.If interest is accruing that means there must be arrears. The interest will stop accruing when the arrears are paid off.
What if someone bought you stocks and you didnt know about it?
You have assets, the rights, benefits accruing to you, and reponsbililties for which you would not even know exist, but still can be liable for.
Discuss the benefits accruing to a company that is traded in the public securities market?
There are financial benefits gained by a company that is traded in the public securities market because capital is raised from investors. Also, a company gains more public awareness from being traded in the public securities markets.
Number of cycles accruing in 1 second is known as what?
hertz
What does the word cummulative mean?
adding up; increasing, growing; accruing
How can you know that the benefits to the economy from free trade are greater than the benefits accruing to the domestic industry that is protected from foreign competition?
You don't. China's GDP has been growing 10% every year for the last fifty years, while America's economy is crumbling. Free trade is like letting a bunch of kids drive a car.
Can you still be ethical after deffering and accruing many expenses?
One has nothing to do with the other.
Boil or cyst Re accruing why?
Cysts will often reoccur if the entire duct was not removed.
What are the benefits of reducing your credit card debt?
The most obvious benefit of reducing your credit card debt is saving money. Interest rates on credit cards grow very quickly. Every time you pay down your card, you save yourself additional accruing interest.
What process is accruing your body sweats to cool off so its temperature doesn't get to high?
Homeostasis
What does the word accrual mean?
1. the act or process of accruing. 2. something accrued; accretion.
Decased was your sister your niece was named benficiary there was no will your niece was named beneficiary on work benefits form before the marriage you only found out about marriage 10 mths before?
The way you describe it, your sister died "intestate" (without a will or a named heir). Your state's laws now come into play to dispose of and allocate her estate WITH THE EXCEPTION OF any benefits accruing from insurance policies or other benefits which your sister assigned by legal documents (during her life) to a named person. These cannot be challenged.
