Answer:
Explanation:
1. What is the partial effect of expendA on voteA?
ΔvoteAΔexpendA=β2+β4expendB→0.0382809+−6.63e−6expendB
2. Is the expected sign for b4 obvious?
Yes because the expendB alone is a negative and expendA is a positive leaving B4 to be a negative number .
Answer:
The current price of Hubbard's common stock is <u>$25.50</u>.
Explanation:
This can be calculated using the Gordon growth model (GGM) formula that assumes growth is dividend will be constant as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price = ?
D1 = Next dividend = D0 * (1 + g) = $1.50 * (1 + 2%) = $1.53
r = required return = 8%, or 0.08
g = growth rate = 2%, or 0.02
Substituting the values into equation (1), we have:
P = $1.53 / (0.08 - 0.02) = $25.50
Therefore, the current price of Hubbard's common stock is <u>$25.50</u>.
Answer:
You should pay $84.42 today for the bond.
Explanation:
bond price = value of bond/[(1 + interest rate)^number of years]
= $100/[(1 + 1.9%)^9]
= $100/(1.185)
= $84.42
Therefore, You should pay $84.42 today for the bond.
Answer:
C. Jobs argument
Explanation:
The job preservation argument is brought up by unions to look out for union jobs.
