Figure 10-7 -In Figure 10-7, Through Which Point Must a Horizontal Demand

question 58

Multiple Choice

Figure 10-7

-In Figure 10-7, through which point must a horizontal demand curve pass to yield a long-run equilibrium?

• A)A
• B)B
• C)C
• D)All of the above is correct.

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Definitions:

Constant-Growth DDM

A version of the dividend discount model that assumes dividends grow at a constant rate indefinitely.

Dividend

Funds disbursed by a corporation to its owners, often from the company's profits, as a profit sharing.

Expected Growth Rate

The predicted percentage increase in the value of an investment, asset, or economy over a certain period of time.

Required Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.