This topic contains a solution. Click here to go to the answer

Author Question: A share of stock will pay a dividend of 20 in one year, and will be sold for an expected price of ... (Read 84 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
A share of stock will pay a dividend of 20 in one year, and will be sold for an expected price of 500 at that time. If the current one-year interest rate is 5, the current price of the stock will be approximately equal to
 
  A) 100.
  B) 495.
  C) 500.
  D) 525.
  E) none of the above

Question 2

Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve. Which of the following is true for this economy?
 
  A) Production does not equal demand.
  B) The money supply does not equal money demand.
  C) The quantity supplied of bonds does not equal the quantity demanded of bonds.
  D) Financial markets are not in equilibrium.
  E) all of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

voltaire123

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

B

Answer to Question 2

E




tuffie

  • Member
  • Posts: 534
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


softEldritch

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Excellent

 

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

For a complete list of videos, visit our video library