Answer:
The stock price is 38.63
Explanation:
We use the gordon model to calculate the horizon value and with htat the value of the stock:
D1 = 2.60 x 1.04 = 2.704
rate of return 11% = 0.11
grow rate = 4% = 0.04
P0 = 38.62857143
The taxes should be ignored as the gordon model do not include them in the calculations
Not trying to be rude but that’s too much for too little amount of points
That’s technically an entire book page of reading
Answer:
See below.
Explanation:
A)
A US purchase of a European product will create demand for Euros as US authorities would have to use euros in the exchange for the airbus, meaning they would have sell US and buy Euros.
B)
The German firm needs to set up in US and thus would need the local currency to conduct its operations in Carolina, they will have to buy USD by selling euros and thus creating a euro supply.
C)
The college student will have to be using Euros and as such would need to exchange dollars for euros, crating a demand.
D)
As the products are shipped aboard a Liberian freighter, they would be paid by giving out euros in the foreign exchange market. This will create a supply of euros.
E)
When the US economy grows at a faster pace, European citizens will invest in US securities or in USA in general thus creating a supply of euros as they buy USD for investments.
F)
As the US government pays interest to a European bond holder, it will create a demand for Euros as more USD will be exchanged for Euros to be paid.
G)
More people will speculate and invest in dollars as they fear euro losing value, this will create more supply of euro in the market as people look to invest elsewhere.
Hope that helps.
Answer: monopoly and a perfectly competitive market
Because the market outcomes in a competitive oligopoly are between those of a monopoly and a perfectly competitive market, deadweight loss still exists, but it is lower than when there is collusion.
