For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then a. the expected future return must be less than the most recent past realized return. b. the past realized return must be equal to the expected return during the same period. c. the expected future returns must be equal to the required return. d. the required return must equal the realized return in all periods. e. the expected return must be equal to both the required future return and the past realized return.

Experienced problem solvers always consider both the value and units of their answer to a problem. why?

Greentel, a telecom giant, has been using the service of orpheus inc. for training its employees. according to a deal signed by the two companies, orpheus inc. is not only responsible for training greentel's employees but also for providing comprehensive administrative services to the telecom giant. in this instance, greentel engages in

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.