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Stock valuation
Microsoft Inc. paid $2 dividend last week. You expect the dividend to grow steadily at a rate of 5 percent per year. If the discount rate for the stock is 12 percent, at what price will the stock sell?
As we know about the own-price elasticity for good x.
Compute the marginal cost in the given case. Illustrate what is the marginal cost with 8 workers to two decimal places.
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
Briefly elucidate how knowledge of price elasticity between different groups of customers
Illustrate what other business decisions are impacted as well, and how. Explain.
What is the difference between the real interest rate and the nominal interest rate? How would not knowing the difference effect perceptions of the economy and affect people's decisions?
Illustrtae what should the arbitrageur do. Suppose that the cost of storing gold is zero and that gold provides no income.
Use our discussion of price discrimination to justify this argument. What problems do you envisage in implementing the policy?
Write an equation that expresses the money supply multiplier (for M1) in terms of its three determinants.
A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer
To best serve customers interested in buying cars over Internet, Smart Motors, hire Nora Jones to respond to customer inquiries.
What elasticity of demand did the Village Administrator seem to assume here in his prediction for 1970- 1971? Compute the approximate elasticity of demand (round off, two decimal places is close enough).
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