If a stock's dividend is expected to grow at a constant rate of 4 percent in the future
and it has just paid a dividend of $6.00 per share, and you have an alternative investment of equal risk that will earn a 7 percent rate of return, what would you be willing to pay per share for this stock?
A) $6.66 B) $54.55 C) $200.00 D) $208.00
D
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is greater than one:
A) retailers in the U.S. should buy the toys from Chinese suppliers. B) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
Many firms use odd pricing—charging prices such as $.99 instead of $1.00 and $9.99 instead of $10.00
One reason for this pricing strategy is that consumers will somehow believe that the difference in price appears to be greater than it actually is. Researchers conducted consumer surveys to determine whether this is actually the case. What was the result of these surveys? A) The survey results were inconclusive because most consumers gave unreliable responses to the survey questions. B) Although the results were not conclusive, there is some evidence that odd pricing makes economic sense. C) The surveys found indifference regarding this strategy among most consumers, but hostility among other consumers. The latter group resented what they viewed as an attempt to fool them into buying products with odd prices. Researchers concluded that odd pricing is counterproductive. D) The surveys found that small differences in price cause small differences in quantity demanded. There is no evidence that odd pricing makes economic sense.
Empirical evidence indicates that
a. changes in the earth's cloud cover will clearly enhance the warming effects of carbon dioxide. b. the increase in carbon dioxide, over thousands of years, is clearly the cause of global warming. c. if global warming continues for another century, as most models forecast, the sea levels will clearly rise substantially, imposing costs much larger than the cost of preventing the warming. d. the earth has warmed a little more than one degree Fahrenheit in the past century.
Which of the following would cause the demand for computer programmers to increase?
a. a decline in the productivity of computer programmers b. an increase in the productivity of computer programmers c. an increase in the wages of computer programmers due to legislative action (that is, the establishment of a price floor for computer programmers) d. a reduction in the price of a competitive input that can be substituted for computer programmers