User Account

All Pages

What is the maximum market price you will pay

Assignment Help Microeconomics
Reference no: EM13698919

Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppose you require a minimum return of 8% on this investment; what is the maximum market price you will pay?

Reference no: EM13698919

Questions Cloud

Additional ads would generate similar response rates : The first national bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent as in similar advertising campaign in Massachusetts Business, a regional ..
About the solow growth model-dynamic growth model : After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological chang..
Calculate the optimal quantities of barley and corn : The utility function of a consumer is given by U = log(b) + log(c) where b and c are the consumption levels of barley and corn. Assume that the price for both goods is $1 and that the consumer has an income of $100. Assume that the government introdu..
Describe the harrod-domar growth model : Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the “knife’s edge model”?
What is the maximum market price you will pay : Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..
What property tax rate will be necessary to fund : Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..
How much money will be raised by the property tax rate : Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..
Firm reinvest in advertising to maximize profits : A monopolist estimated that the own-price elasticity of demand for its product is -4.5 and its advertising elasticity of demand is 1.5. Assuming these elasticities are constant, what fraction of the firm's revenues should the firm "reinvest" in adver..
Tissue plasminogen activator : Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Government decides to charge cola consumers a tax

Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25,000 cases of cola were sold every week at a price of $7 per case. After the tax, 18,000 cases of cola are sold every week; consumers pay $8 per case (includin..

  Consider monopolistically competitive market with n firms

Consider a monopolistically competitive market with N firms. Each firm’s business opportunities are described by the following equations:

  Write productivity factors which may describe the

list the productivity factors that may explain the differences in pay between men and women in similar occupations. do

  Description of monopolist

Discuss why a monopolist should lower its quantity relative to the perfectly competitive market to maximize profits. Make sure to elaborate employ examples.

  The expenditure multiplier for the economy

At the equilibrium level of output, the aggregate consumption level is: At the equilibrium level of output, the aggregate savings level is: The MPC and MPS for the economy is respectively: The expenditure multiplier for the economy is:

  I 300 words or more give your response to above

apple new straits times 1997. the article is included in the required readings list. facing tough anti-trust scrutiny

  Identify at least three limitations of gdp as a measure

Go to the Bureau of Economic Analysis website, www.bea.gov, and access the BEA interactively by selecting "National Accounts" and then "National Income and Product Account Tables."

  Compute the depreciation amount

An asset for drilling was purchased and placed in service by a petroleum production company. it cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years.

  1 price elasticity of demand is an important tool for

1. price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on

  Describe the linear programming problem

Interpret the components of mathematical equations that explain the linear programming problem for each of the following:

  Assume government reduces public expenditure on goods and

1. consider a simple keynesian income-spending model of an economy described by the following equationsc 210 0.75yd

  What does gdp measure

First, what does GDP measure? Even if we prefect the measure by correcting for price increase

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd