The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

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Answer 1

Question

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

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Answer 2

Question

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

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Answer 3

Question

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

Answer 6

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

Answer 7

Chapter 21, Problem 1P

To determine

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Answer 8

Expert Solution & Answer

Explanation of Solution

The share prices are likely to fall when consumers or businesses are pessimistic about economic conditions. So,if there is a situation where consumers or businessmen are pessimistic, the firms should issue a larger number of stocks to raise some funds. Likewise, these firms are apt to spend in new capital or new expenditure when economic conditions are not in support of them.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Stock:

The ownership on a company's assets and earnings in form of share is known as stock. The person having share can claim ownership for that part.

Answer 12

Ch. 21 - Prob. 1P Ch. 21 - Prob. 2P Ch. 21 - Prob. 3P Ch. 21 - Prob. 4P Ch. 21 - Prob. 5P Ch. 21 - Prob. 6P Ch. 21 - Prob. 7P Ch. 21 - Prob. 8P Ch. 21 - Prob. 9P Ch. 21 - Prob. 10P

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

To explain: The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.

Explanation of Solution

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Chapter 21 Solutions

To explain:

The reasons for firms do not want to issue new shares of stock when consumers or businesses are negative about the economic conditions.