Using the Gordon growth model, a stock's current price will increase if
A) the dividend growth rate increases.
B) the growth rate of dividends falls.
C) the required rate of return on equity rises.
D) the expected sales price rises.
A
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What's the most common way for a central bank to reduce the money supply?
A) Collect higher taxes B) Sell bonds to the public C) Buy bonds from the government D) Buy bonds from the public
How much labor does a firm require to produce q = 1000 when capital is fixed at 5 and they have a production function equal to q = 200L0.5K0.5?
A) L = 5 B) L = 2.5 C) L = 200 D) L = 2.25
What is the expected outcome when trade occurs in a monopolistically competitive industry if the nations have similar tastes, technology, products, and costs?
a. No trade is possible. b. Consumers are left with no choices. c. Each firm has a larger market in which to sell, and consumers have more choices of sellers and products. d. Transportation costs become the driving factor.
Suppose that Victoria and her friends are running a fundraiser by selling donuts. They want to know what will happen to their revenue if they increase the price of each donut from $0.80 to $1. What concept do they need to apply to find out their expected revenue?
A. price elasticity of supply B. price elasticity of demand C. cross elasticity of demand D. income elasticity of demand