Justin cement company has had the following pattern of earnings per share over the last five years: year earnings per share 20x1 $ 10.00; 20x2 10.50; 20x3 11.03; 20x4 11.58; 20x5 12.16. the earnings per share have grown at a constant rate (on a rounded basis) and will continue to do so in the future. dividends represent 40 percent of earnings. a. project earnings and dividends for the next year (2011). round intermediate and final answers to 2 decimal placesb. if the required rate of return (ke) is 13%, what is the anticipated stock price (po) at the beginning of 2011? round your intermediate and final answers 2 decimal places.

Suppose an economy has only two sectors: goods and services. each year, goods sells 80% of its outputs to services and keeps the rest, while services sells 62% of its output to goods and retains the rest. find equilibrium prices for the annual outputs of the goods and services sectors that make each sector's income match its expenditures.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less