City a Has a Total Population of 10 Million, of Which

question 74

Essay

City A has a total population of 10 million, of which 70 percent are adults. Assume that 20 percent of the adult population is not looking for a job and 60 percent of the remaining adult population is employed. Compute the following:
a. Labour-force participation rate
b. Unemployment rate

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Definitions:

Stock Repurchase Program

A plan initiated by a company to buy back its own shares from the marketplace, reducing the number of outstanding shares.

Special Dividend

A one-time, non-recurring dividend paid by a company to its shareholders, usually reflecting exceptionally good earnings.

2-for-1 Stock Split

A corporate action where a company divides its existing stock into two, reducing the price of each share for investors while maintaining the overall value of their investment.

Information Content Effect

The impact on a company's stock price when new information becomes available to market participants.