Answer:
marginal investor
equal
less
infinite
Explanation:
the value of a stock depends on the sum of the value of the dividend yield and capital gains yield
dividend yield = dividend / price of the stock
capital gains yield is a change in the value of the stock as a result of appreciation in the value of the stock.
The intrinsic value of a stock can be calculated using various dividend models. some of them include :
- The Gordon constant growth dividend model
- The two stage dividend growth model
- The H-model
- The three stage dividend growth model
The market is in equilibrium when price equal intrinsic value
a stock is undervalued when the price of the stock is less than its intrinsic value
A stock is overvalued when the price of the stock is greater than its intrinsic value.
An investor would want to purchase a stock that is undervalued so that they can take advantage of increase in the value of the stock
Th dividend used to calculate the intrinsic value is infinite. This is because dividends are paid infinitely as long as the investor holds the stock and the company exists
Answer:
Explanation:
The government needs to be on top of these situations because each of these factors plays a huge role in the wellness and size of a population. A market economy needs a certain healthy and large population in order to function correctly. The population needs to produce the products and services while at the same time purchasing those products and services from one another in order for the market cycle to function. If such factors as disease and pollution make people sick it will severely cripple the market economy.
Higher prices will lead to more products being supplied, whereas lower prices will lead to less products being supplied. A change in a non-price determinant of supply is the only factor that can affect whether a good's supply rises or falls.
The cost of the good or service is the determinant of supply that is the most evident. When all other factors are equal, a product's supply grows if its relative price is higher. It's easy to understand why. A business sells products or services to make money, and as prices grow, so do profits.
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