Suppose your bank account pays a 5% interest rate. You are considering purchasing a share of stock in DH Corporation for $250 . The stock will pay you a $10 dividend at the end of years 1, 2, 3, 4, and 5 . You expect to be able to sell the stock at the end of year 5 for $300 . Is DH a good investment? Provide evidence to support your answer
The present value of the investment in DH Corporation is $278.35, so DH would be a good investment.
Economics
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Which of the following product pairs would NOT be good candidates for price discrimination through tying?
A) Razors and razor blades B) Ink-jet printers and ink cartridges C) Pencils and paper D) Cellular telephones and cell phone service
Economics
If two goods are substitutes, the cross-price elasticity of demand must be
A) negative. B) positive. C) zero. D) infinite.
Economics