If a stock is expected to pay a dividend of $40 for the current year, what is the approximate present value of this stock, given at discount rate of 5% and a dividend growth rate of 3%?
What will be an ideal response?
P = $40/(0.05 - 0.03 ) = $40/0.02 = $2,000
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Three basic decisions must be made by all economies. What are they?
a. How much will be produced, when it will be produced, and how much it will cost. b. What the price of each good will be, who will produce each good, and who will consume each good. c. What will be produced, how goods will be produced, and for whom goods will be produced. d. How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.
If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect
a. a smaller quantity of labor to be used. b. the supply of cars to increase. c. the firms' costs to fall. d. individual car manufacturers to move up and to the right along their individual supply curves.
Which of the following statements is true about productive inefficiency
What will be an ideal response?
Under the old Soviet version of communism in the U.S.S.R., the questions of 'What?', 'How?', and 'For whom?' were answered by
A. a democratically elected congress called the Duma. B. the law of supply and demand. C. the decisions of hundreds of millions of individual consumers. D. a government planning committee.