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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Without specialization, individuals might spend time producing ________ goods.
A. unwanted B. low cost C. high cost D. general
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