Assume perfect capital markets. kay industries currently has $ 100 million invested in short-term treasury securities paying 7 %, and it pays out the interest payments on these securities as a dividend. the board is considering selling the treasury securities and paying out the proceeds as a one-time dividend payment. a. if the board went ahead with this plan, what would happen to the value of kay stock upon the announcement of a change in policy? b. what would happen to the value of kay stock on the ex-dividend date of the one-time dividend? c. given these price reactions, will this decision benefit investors?

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms. a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Select all that apply. select the ways that labor unions can increase wages. collective bargaining reducing the labor supply increasing the demand for labor creating monopolies

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent