Suppose a country using the United States' system of calculating official unemployment statistics has 100 million people, of who
m 50 million are working age. Of these 50 million, 20 million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million do not want jobs at all. Q1: Refer to the information above. The labor force is
Q2: Refer to the information above. The labor force participation rate is
Q3: Refer to the information above. The official unemployment rate is
The expected rate of return on this stock is 10.31%
Explanation:
The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,