If a stock's dividend is expected to grow at a constant rate of 6 percent in the future
and it has just paid a dividend of $2.50 a share, and you have an alternative investment of equal risk that will earn a 8 percent rate of return, what would you be willing to pay per share for this stock?
A) $2.86 B) $33.13 C) $132.50 D) $200.00
C
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Cable television companies must pay increased charges by the networks for the programs the cable companies carry. As a result, the price of cable television rises. Thus
A) the demand curve for cable television service shifts rightward. B) the demand curve for cable television service shifts leftward. C) there is a movement down the demand curve for cable television to a higher quantity demanded. D) there is a movement up the demand curve for cable television to a smaller quantity demanded.
The money supply contracts when the Fed: a. replaces worn and ripped Federal Reserve notes. b. sells government securities
c. borrows from the U.S. Treasury. d. purchases equities in major U.S. corporations.
Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.
Given the above, Robin Smith is probably going to negotiate a salary of ________ per week, ________ of which is economic rent.
A. $500, $500 B. $400, $0 C. $475, $75 D. $500, $100
ItemBillions of DollarsCheckable Deposits$597Small Time Deposits818Currency639Money-Market Mutual Funds Held by Businesses1,045Savings Deposits, Including Money-Market Deposit Accounts2,866Money-Market Mutual Funds Held by Individuals979 Refer to the above table. The size of the M2 money supply is:
A. $2696 billion. B. $2054 billion. C. $5899 billion. D. $6792 billion.