Afirm has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. the growth rate in dividends has been 5 percent. the cost of the firm's common stock equity is

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

When a market is in equilibrium, the buyers are those with the willingness to pay and the sellers are those with the costs.