Suppose that macroeconomic forecasters predict that the


1. Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?

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 rate of 3%?

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Microeconomics: Suppose that macroeconomic forecasters predict that the
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