Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. The number of labor hours required to produce one unit of Good X in Country A is ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. 1.
B. 0.5.
C. 2.
D. 1.43.
Answer: A
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Suppose 3M pays a dividend of $2 per share which the investor is expected to receive immediately. The dividend is expected to grow by 5% per year and the investor has a required rate of return of 8%
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