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Economics

problem about Present value of the stock

1. The demand for salt is relatively price inelastic, while the demand for pretzels is relatively price elastic. How can you best describe why?

2. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M926058

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