Strikes Are More Likely and of Longer Duration in Periods

question 26

Essay

Strikes are more likely and of longer duration in periods of relative prosperity.Use the Hicks Bargaining Model to account for this empirical observation.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, considered the cost of equity capital.

Security Market Line

A representation in financial models that shows the relationship between the risk of an investment and its expected return.

Dividend Payout Ratio

A metric that measures the portion of a company's earnings paid out to shareholders as dividends.

Market Rate of Return

The average return investors expect to earn from an investment in the general market.