Figure 4-4 -Refer to Figure 4-4.Which of the Following Would Cause the Following

question 387

Multiple Choice

Figure 4-4

-Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

• A) a freeze in Florida
• B) a technological advance that allows oranges to ripen faster
• C) a decrease in the price of apples
• D) an announcement by the FDA that oranges prevent heart disease

Understand the concept of retained earnings, including restrictions and adjustments.

Comprehend the mechanisms of net income, net loss, and their effects on retained earnings.

Identify and record various types of stock dividends and their impact on financial statements.

Grasp the implications of stock splits on a corporation’s books.

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Definitions:

Zero Coupon Bonds

Bonds that do not pay periodic interest payments and are instead sold at a discount from their face value and redeemed at maturity for the full face value.

Coupon Payments

Periodic interest payments made to bondholders, usually on an annual or semi-annual basis, as compensation for investing in the bond.

Maturity Risk Premium

The additional return that investors demand for bearing the risk associated with holding a longer-term debt instrument.

Yield Curve

A graphical representation showing the relationship between the interest rates of bonds of identical quality but different maturity dates.