Compute the current value of this stock

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1. Which of the following statements is true of the U.S. economy?

In the second half of the 1960s, the output gap was mostly negative while in the first half of the 1990s, the output gap was mostly positive

In the second half of the 1960s, the output gap was mostly positive while in the first half of the 1990s, the output gap was mostly negative

In the second half of the 1960s and the first half of the 1990s, the output gap was mostly negative

In the second half of the 1960s and the first half of the 1990s, the output gap was mostly positive.

2. The misery index is the sum of the

unemployment rate and the output gap

unemployment gap and the output gap

unemployment gap and the inflation gap

unemployment rate and the inflation rate

3. A firm does not pay a dividend. It is expected to pay its first dividend of $0.55 per share in 2 years. This dividend will grow at 11 percent indefinitely. Using a 13 percent discount rate, compute the current value of this stock.

$27.50

$24.89

$24.34

$28.05

Reference no: EM132071572

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