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Case 8: (PNC) Operating Leverage, Financial Leverage
Case 8: (PNC) Operating Leverage, Financial Leverage

... Inc. was formed and the president of Router is Frank Garcia, who has been recently pushing for a spin-off. Frank believes that a spin-off will allow it to grow and increase chances of success. Currently, PNC owns all of Router’s stock, but the plan is for Router to finalize its operating plan and ca ...
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Non-Keynesian Fiscal Policy effects
Non-Keynesian Fiscal Policy effects

... economy along with private consumption since Government expenditures are considered to be constant over time. So, any imbalances observed with respect to public spending and taxes are cancelled out in the future which basically means that economic agents do not respond to fluctuations regarding to F ...
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How taxes on firms reduce the risk of after-tax cash... Abstract

... [email protected] July 17, 2012 ...
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Slide - MyWeb

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Exercise 6 (+additional question) in Mankiw:

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Aggregate Disturbances, Monetary Policy, and the Macroeconomy: The FRB/US Perspective

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The role of the natural rate of interest in monetary policy

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CHAPTER 8 Introduction to Economic Growth and

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... China, Hong Kong, and Singapore – on average have a higher national saving rate than do other regions.  Some analysts have attributed this to East Asian’s cultural factors, while others attributed it to the “East-Asian growth model” which includes various policies designed to promote growth through ...
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Proposal on stock prediction return of Pakistan

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Collection of Practice Problems

... a. Suppose α=1/3, s=0.2, n=1%, g=1%, δ=4%. What are the steady state value of the capital-labor ratio, output per efficiency unit, and consumption per efficiency unit? For parts b-e, assume the economy starts in the steady state derived in (a). b. Suppose an earthquake destroys 10% of the capital st ...
< 1 ... 67 68 69 70 71 72 73 74 75 ... 371 >

Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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