How Much Should You Pay for a Share of Stock

question 27

Multiple Choice

How much should you pay for a share of stock that offers a constant-growth rate of 10%,requires a 16% rate of return,and is expected to sell for $50 one year from now?

• A) $42.00
• B) $45.00
• C) $45.45
• D) $47.00

Understand specific inefficiencies caused by binding price ceilings and floors, like persistent shortages and surpluses.

Identify the conditions under which price controls (ceilings and floors) are considered binding.

Examine the effects of minimum wage policies on employment among skilled and unskilled workers.

Understand the process and implications of conception, including the role and quantity of sperm cells.