Suppose you are considering buying shares of a stock to hold for one year. The stock has an expected annual dividend of $2 and an expected price at the end of the year of $25
If your required rate of return is 10%, what is the most that you should be willing to pay for the stock? Round off to the nearest cent.
The present value of the stock is $27/1.1 = $24.55. You should pay no more than $24.55 for a share of the stock.
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A) cost; price; supply B) cost; demand; price C) demand; price; cost D) supply; cost; price
Creating market power through the use of tariffs or quotas can
A) drive price to the monopoly level. B) increase the world price of the good that is targeted. C) increase government revenue. D) All of the above.
Empirical evidence on the U.S. economy suggests that household spending and income have an inverse relationship
a. True b. False Indicate whether the statement is true or false
Differentiate between a change in quantity demanded and a change in demand