a stock is expected to pay an annual dividend of $20 this year‚ what is the approximate present value of the stock‚ given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year? Answer: a. P = D/k = 20/.05 = $400 b. P = 20/.08 = $250 c. P = D1/(k - g) = 20/(.08 - .02) = $333.33 2) 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
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CHAPTER 20 Supply and Demand: Elasticities and Government-set Prices A. Short-Answer‚ Essays‚ and Problems New 1. The president of a toy company asks you for advice about whether the company should cut the price of its best-selling doll this year based on the following information: last year the company cut the price of its best-selling doll by 10% and the total revenues from doll sales increased by 10%. New 2. The owner of a health club asks you for advice about whether the company
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filling machines. The machine is designed to discharge a mean amount of 12 ounces per box‚ and the manufacturer wants to detect any departure from this setting. This quality study calls for randomly sampling 100 boxes from today’s production run and determining whether the mean fill for the run is 12 ounces per box. Set up a test of hypothesis for this study‚ using an alpha level of .01 Since the manufacturer is interested in any departure (more than 12 or less than 12) from a mean of 12 ounces
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billions of dollars on prescription drugs every year. Tiny amounts of pharmaceuticals including antibiotics‚ hormones‚ mood stabilizers‚ and other drugs are in our drinking water supplies‚ in soils‚ surface waters and groundwaters. People have been flushing down unwanted medicines in the toilet for a long time and this is affecting the rivers and even the water that we drink. After being taken these medicines are eventually eliminated from the body and flushed into the water supply. Many people also
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When it comes to the topic of prescription drugs being regulated‚ most of us will readily agree that this is a big concern for many Americans. Where this argument usually ends‚ however‚ is on the question of why do Americans pay some of the highest prices for prescription drugs compared to other countries. Whereas some are convinced that these high costs are set solely for the fact of the amount of money spent on producing these drugs‚ others maintain that there is an opportunity for medication prices
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cannot afford to live in other areas of the city‚ (2) they prefer to live with people of their own ethnic group‚ or (3) there is discrimination against them in other areas of the city. Rents paid are a very high percent of peoples’ incomes. (a) Would the demand for apartments in this area be relatively inelastic or relatively elastic? State why. (b) Would the supply of apartments in this area be relatively inelastic or relatively elastic? State why. 1 (c) Draw the demand and supply curves as you have
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1. Select two companies whose product(s) you use in your daily life. You may choose any firms you wish‚ as long as their information is publicly available (as to their products and financial information) and they are known to the average person. Dell computer & Lukoil a. Dell computers cover needs pertaining to strategy and deployment‚ IT and business consulting‚ managed services and all around expert advice and world-class support. Dell products can be used within organizations to use business
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Prescription Drugs A pharmacist is a person who is professionally qualified to prepare and dispense medicinal drugs. Pharmacists work in a hospital‚ clinic or community drug store. Pharmacist duties include constantly studying and learning about the properties and side effects of new drugs and communicating this information to doctors and patients. According to Mike Johnston in "The Pharmacy Technician Foundation and Practices" book pharmacy is the art and science of preparing and dispensing
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Pharmeuticals How do you feel about some prescription drugs? Do they harm us while supposed to be helping us with our health problems? Prescription drugs are supposed to treat and cure diseases when some harm and kill us because they are not being used right or they are being used too much. Most drugs are becoming an addiction‚ and there are more overdoses occurring for over prescription drug use. Pharmeuticals drugs are being used the wrong way and being taken too
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Supply and Demand Simulation ECO/365 Supply and Demand Simulation In the supply and demand simulation a neighborhood called Atlantis is given for the setting. Atlantis is a small city with open spaces‚ low population‚ and a low crime rate. There are plenty of sidewalks and street systems for easy access to the highway. The housing in Atlantis is detached homes and apartments. The supply and demand simulation consists of microeconomics and macroeconomics. The simulation presents shifts in the
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