Assume that investors expect a return of rE= 10%for holding stocks. Consider two stocks. The first pays currently a dividend ofD1= 10,which is expected to grow at5%,the second payscurrentlyD2= 100,which is expected to grow at6%.According to the Gordon model which of the two stocks is expected to generate a higher rate of return?

Cindy recently played in a softball game in which she misplayed a ground ball for an error. later, in the same game, she made a great catch on a very difficult play. according to the self-serving bias, she would attribute her error to and her good catch to her

Match the different financial task to their corresponding financial life cycle phases

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?