Answer: $62.50
Explanation:
The stock price of Locked-In Real Estate (LIRE) will be calculated thus:
Stock price = D /ke - g
where,
D = Dividend paid per share = $7.50
Ke = expected rate of return on equity = 12% = 0.12
g is growth rate of dividend = 0
Stock price = $7.50/0.12
Stock price = $62.5
Therefore, the stock price is $62.50
Answer:
Option A, “the substitution effect dominates the income effect” is correct.
Explanation:
If the real wage increases then the opportunity cost for leisure will also increase. Therefore, an increase in real wages and a rise in the opportunity cost of leisure induce labor to supply more workforce or labor force. This is known as the substitution effect. Moreover, when this substitution effect is greater than the income effect then the supply curve for labor is upward sloping.
The benefits from eating one more bowl of ice cream to how much one more bowl of ice cream costs.
The appropriate response is A. Henry Ford also then sued the Chicago Tribune for criticizing the grounds that it called him an uninformed revolutionary. In court, the guard lawyer has chosen to show Ford's obliviousness and absence of patriotism by posting essential American history inquiries. The vehicle head honcho reliably missed these inquiries, and court transcripts of his nonsense wound up plainly well known perusing at the time.
