According to the Gordon-Growth model, what is the value of a stock with a dividend of $2, required return on equity of 8% and expected growth rate of dividends of 4%?
A) $25
B) $26
C) $50
D) $52
D
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All of the following are true regarding tacit collusion except which one?
A) It harms buyers. B) It is more likely when firms' costs are closely related and their products are close substitutes. C) It is more likely when barriers to entry are low. D) It is an informal, unstated agreement.
People from which nation in Europe were most likely to come to colonial North America as redemptioners?
a. Italy. b. Holland. c. Germany. d. France.
Firms with internal labor markets have more flexibility in deciding the level and time profile of wages because
A. individuals tend to base their employment decisions on their entire career earnings. B. compensating wage differentials do not have to be paid in internal job markets. C. they have to pay the wage rate that equals the marginal revenue product of labor. D. firm-specific human capital is less costly than general human capital.
Assume that the share of population employed in all countries is 50 percent. Based on the information in the table, which country has the highest real GDP per capita? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. Country B B. Country A C. Country D D. Country E