Assume that you plan to buy a share of ABC stock today and t…

Assume that you plan to buy a share of ABC stock today and to hold it for 3 years.  Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.25 at the end of Year 2 and $10 at end of Year 3.  In addition, you expect to sell the stock for $150 at the end of Year 3.  If your expected rate of return is 10 percent, how much should you be willing to pay for this stock today?

Given the scenario in the previous question (each tax return…

Given the scenario in the previous question (each tax return is worth approximately $20, employees are paid approximately $10 per hour worth of benefits), what if you were more productive and could complete 5 tax returns per hour. What is the most (in terms of cash wage) can the employer pay you, assuming everything else is the same? 

A manager wants to do a market study before launching a new…

A manager wants to do a market study before launching a new product. The research study will take three months to complete. Just two weeks before starting the study, she learns that one of her company’s competitors is about to launch a product that will compete directly with her company’s new product. Based on this new information, she decides to cancel the research study and launch the product immediately. Which of the following is most likely the reason for cancelling the study?