Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

We considered a model of stock price determination that leads to the conclusion that the price of a stock in the current time period is equal to the present value of the stream of future dividends. The model is based on the following assumption : s (t) = [d(t+1)+s(t+1)] / 1+rExplain in words what the above assumption says and explain the economic reasoning that is used to justify the assumption.

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91518557

Have any Question?


Related Questions in Microeconomics

Question using a supply-and-demand graph and assuming

Question: Using a supply-and-demand graph and assuming competitive markets, show and explain the effect on equilibrium price and quantity of the following: A technological change that reduces the cost of producing X-rays ...

Question suppose the european union eu is investigating a

Question: Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists' definition of the relevant market, the two firms prop ...

Question coke is manufactured by a publicly held company

Question: Coke is manufactured by a publicly held company. For this product predict the following: Where is the product manufactured? Given the suggested retail price of the company and using a 50% markup on price at ret ...

Question give an original concise but thorough answer to

Question: Give an original concise but thorough answer to the following questions. a. Compare the shareholder and stakeholder models of corporate governance. Which one seems to predominate today? What implications does t ...

Discussion wilderness backpacking expeditionsfor this

Discussion: Wilderness Backpacking Expeditions For this discussion imagine that you and some friends want to start a business to take tourists on wilderness backpacking expeditions. You have to use your own money to star ...

Question in 1980 the inflation rate in the us was 125 at

Question: In 1980, the inflation rate in the US was 12.5%. At that time, the consensus outlook claimed inflation could not decline by more than 1% per year. That turned out to be incorrect, as it fell to 3.8% in 1982 and ...

Question from earlier chapters you will recall that

Question: From earlier chapters you will recall that technological change shifts the average cost curves. Draw a graph showing how technological change could influence intra-industry trade. The response must be typed, si ...

Hello could you please explain how to calculate this

Hello, Could you please explain how to calculate this problem? If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes ...

Question assume that you were a small country what would

Question: Assume that you were a small country, what would you rather have a comparative or absolute advantage with trading? Explain your reasoning. The response must be typed, single spaced, must be in times new roman f ...

Question drug law enforcers can concentrate their efforts

Question: Drug law enforcers can concentrate their efforts on reducing supply or demand, removing suppliers or removing demanders. a. Assuming that your goal is to raise the price of drugs to a prohibitive level, should ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved