Answer:
The price of this stock today is $4.275
Explanation:
The constant growth model of the DDM approach will be used to calculate the price of this stock today. However, as the dividends are falling by a consatnt percentage every year, the growth rate taken will be negative i.e. -5%.
The formula for the price of a stock using this model is,
P0 = D0 * (1+g) / r - g
Thus,
P0 = 0.9 * (1 - 0.05) / 0.15 +0.05
P0 = $4.275
Answer:
Higher unemployment, lower wage share of output, and higher Gini coefficient in the long run.
Explanation:
Since less labor will be used, total unemployment will increase. Besides less labor being used, more capital will be used, so the share of labor in total output will decrease. Labor efficiency increases, since you need less labor to produce the same or even a larger amount of output.
New technologies tend to increase the wages of high skilled labor and management. Since the Gini coefficient measures income inequality, then higher wages for a few will increase inequality.
This is an example of what is happening in the US, where highly trained labor is getting paid better every time while unskilled labor is getting paid the same as many years ago or their wage has even decreased with time. This shows how important a college education is, and the difference will only keep increasing.
Answer;
Advantage: Working in a new industry will give you the opportunity to get to know a whole different crowd of people and expand your career network.
Disadvantage: Because there are so many career opportunities available, you may be tempted to change job roles too frequently. This can have a negative effect in the long-term; as employers may worry that you won’t stay in any new role for very long.
Answer:
False
Explanation:
Buyers and Sellers do not physically see each other