You believe that a corporation's dividends will grow 5% on average into the foreseeable future. If the company's last dividend payment was $5 what should be the current price of the stock assuming a 12% required return?
What will be an ideal response?
Use the Gordon Growth Model.
$5(1 + .05 )/(.12 - .05 ) = $75
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The ________ curve shows a(n) ________ relationship between the real wage and the number of workers who are willing to work
A) labor demand; direct B) labor demand; positive C) labor supply; inverse D) labor supply; positive
In the above table, if the firm produces 2 units of output, it will
A) make an economic profit of $9. B) make an economic profit of $60. C) incur an economic loss of $9. D) incur an economic loss of $60.
In most developed economies, unemployment insurance benefits
a) are nonexistent b) paid for by insurance companies c) initially replace 100% of lost wages d) replace an increasing percentage of lost earnings as the duration of unemployment becomes prolonged e) become less generous as the duration of unemployment is prolonged
Without specialization, individuals might spend time producing ________ goods.
A. unwanted B. low cost C. high cost D. general