Suppose you buy a stock that sells for $20. It's expected annual dividend is $2 and you expect its price to be $25 in one year. What is your expected rate of return on the stock?

What will be an ideal response?

The expected rate of return is $2/$20 + ($25 - $20)/$20 = 35%.

Economics

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The "most favored nation principle" means:

a. that member countries can enter into exclusive favorable agreements with some countries. b. that member countries are barred from forming agreements outside their geographic vicinity. c. that member countries must apply the same low tariffs to all WTO member countries. d. that member countries must apply differential tariffs on imports from non-WTO countries.

Economics

From 1980 through 2010, the debt-to-GDP ratio in the United States

A) is considered high by U.S. historical standards. B) has more than quadrupled. C) has slowly declined. D) has remained about average compared to countries in the OECD.

Economics