If the present value equation used to calculate the price of a stock you are considering buying is "[$7 / (0.04 - 0.03)]," which of the following is correct, assuming that dividends will grow at a constant rate?
A) The stock price is $7, the dividend growth rate is 3 percent, and the interest rate is 1 percent.
B) The stock price is $700, the dividend growth rate is 3 percent, and the interest rate is 4 percent.
C) The dividend is $7 per share, the dividend growth rate is 1 percent, and the interest rate is 4 percent.
D) The dividend is $7 per share, the dividend growth rate is 4 percent, and the interest rate is 3 percent.
B
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Which of the following is true?
A. Competitive markets that are free of government interference will efficiently price externalities. B. Nonmarket economies have historically created less environmental damage than market economies. C. Externalities are rare and in practice are not relevant to policy makers. D. Public institutions, private firms, and consumers all create externalities.
Which of the following does NOT represent a way in which financial intermediaries take advantage of economies of scale?
A) paying lower brokerage fees per dollar invested B) paying lower legal fees per dollar invested C) purchasing sophisticated computer systems D) paying lower taxes per dollar invested
In the United States during the 1980s, there was a movement toward deregulation of industry
a. True b. False Indicate whether the statement is true or false
Each governor of the Federal Reserve is
A) appointed by the President to a 4-year term. B) appointed by the President to a 14-year term. C) appointed by the President for life. D) elected by the Presidents of banks and savings institutions.