Approximate present value of the stock
Problem: If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%?
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Which of the following is an example of an adverse selection problem and which is a moral hazard incentive problem? In each case, give one method that the restaurant might use to reduce the problem
Problem: A firm that seeks to maximize its revenue is most likely to adhere to which of the following?
If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%?
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Problem: Which of the following cost relationships is not true? a. AFC = AC - MC b. TVC = TC - TFC c. the change in TVC/the change in Q = MC d. the change in TC/ the change in Q = MC
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