Answer:
D3 = $7.146096 rounded off to $7.15
Explanation:
The dividend growth projected for the stock expects the stock to grow at a constant rate of 6% each year over an indefinite period of time. This means that the $6 dividend paid by the stock in the current year will grow by 6% every year over its life. Thus, the expected dividend to be paid in 3 years will be calculated as follows,
Lets say that the dividend just paid is D0. Thus, the dividend to be paid in 3 years will be D3. So, D3 will be calculated as follows,
D3 = D0 * (1+g)^3
D3 = 6 * (1+0.06)^3
D3 = $7.146096 rounded off to $7.15
The combinations shown by the Production Possibilities Frontier are the combinations of output that an economy can produce.
<h3>What does the Production Possibilities Frontier?</h3>
This refers to an economic metric that allows a nation to see the quantities of goods that it is able to produce given its available resources.
Producing outside the PPF is not possible because it shows a quantity that the nation is unable to produce because it will not have the required resources.
Find out more on the Production Possibilities Frontier at brainly.com/question/25071524.
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Answer:
some firms will exit the industry
Explanation:
if the minimum possible price of constructing homes = $50 per square foot, it means that the marginal cost of building a square foot is $50. If the selling price is less than the marginal cost, then some firms will inevitably have to exit the industry. No firm can remain at an industry when its marginal costs are higher than its marginal revenue.
As supply lowers, the equilibrium price should increase, and some firms might return to the industry.
