This statement is true. This is because in any economy, as the population size increases, the capital per worker decreases correspondingly.
Answer:
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Answer:
Current market price (Po) = $50
Growth rate (g) = 7%
Dividend paid (Do) = $1
Required return (Ke) = ?
Po = Do<u>(1 + g)</u>
Ke - g
$50 = $1<u>( 1 + 0.07)</u>
ke - 0.07
$50 = <u> 1.07</u>
Ke - 0.07
$50(Ke - 0.07) = $1.07
50Ke - 3.5 = $1.07
50Ke = $1.07 + $3.5
50Ke = $4.57
Ke = 4.57/50
Ke = 0.0914 = 9.14%
Explanation:
The current market price of a stock equals current dividend paid, subject to growth rate, divided by the difference between required rate of return and growth rate. The current market price, growth rate and current dividend paid were provided in the question with the exception of the required return (Ke). Thus, the required return becomes the subject of the formula.
Answer:
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Explanation:
Relatively Fixed Individual Differences is the Intelligence, ability, personality, core self evaluations (self esteem, self efficiency...) managers have little impact on these.