According to the Gordon-Growth model, what will be the percentage change in the value of a stock of a company whose current dividend is $10.00 and whose dividends had been expected to grow by 3% but now are expected to grow by 4% per year?
A) 4.0%
B) 17.8%
C) 25.0%
D) 33.3%
B
You might also like to view...
Movie theaters often charge different people different prices for admission. Why don't theaters charge different prices for popcorn and other food items?
A) It is difficult to limit the resale of food items from those who pay low prices to those who would have to pay high prices from the concession stand. B) Once people are in the theater, concession stands have monopoly power and can charge everyone the same high prices for food. C) Although the elasticity of demand for admission differs among customers, most people have the same the elasticity of demand for food items. D) Concession stand personnel are too busy to ensure that different people pay different prices for food items.
The above figure shows the payoff to two airlines, A and B, of serving a particular route
If the two airlines must decide simultaneously, and the government imposes a $20 per firm tax on firms that service this route, which of the following maximizes the firms' joint profits? A) Neither firm services the route. B) Firm A offers firm B $20 to not enter. C) Both firms will service this route. D) Firm B offers firm A $30 to not enter.
The aim of supply-side economics is to: a. increase government spending to stimulate aggregate supply
b. stimulate exports to increase the balance of payments. c. decrease wages to make production cheaper. d. lower taxes to increase the supply of resources. e. reduce both the inflation and unemployment problems through increases in taxes.
Who formulated the theory that government borrowing may function like an increase in taxes in the sense of reducing current consumption and business expenditures?
A. David Ricardo B. John Maynard Keynes C. Jean Baptiste Say D. Adam Smith