A key point made by the Gordon-Growth model is that the
A) value of a stock depends on investor's expectations about the future profitability of a firm.
B) past trends in a stock's behavior indicate future price trends.
C) dividends have little to do with a stock's value.
D) risk has little effect on a stock's value.
A
You might also like to view...
What is the difference between nominal exchange rates and real exchange rates?
What will be an ideal response?
One reason that economists encourage free trade is that
A) it encourages a more rapid spread of technology. B) it allows us to exploit the workers of less developed countries. C) we can sell more goods. D) it increases our capital stock.
Using the point method the price elasticity of demand for the demand curve P = 20 - 2Q, when P = 30 is
A. 0.08. B. 0.33. C. 12. D. 3.
Suppose the interest rate falls and the quantity of money borrowed (and lent) increases. Which of the following could have caused this to occur?
A. An increase in the demand for loans B. A decrease in the supply of loans C. An increase in the supply of loans D. A decrease in the demand for loans