A negative externality exists if
A) there are quantity controls in a market.
B) the marginal social cost of producing a good or service exceeds the private cost.
C) there are price controls in a market.
D) the marginal private cost of producing a good or service exceeds the social cost.
Question 2
If a stock's dividend is expected to grow at a constant rate of 4 percent in the future and it has just paid a dividend of 6.00 per share,
and you have an alternative investment of equal risk that will earn a 7 percent rate of return, what would you be willing to pay per share for this stock?
A) 6.66 B) 54.55 C) 200.00 D) 208.00