A firm is considered a dividend aristocract if it has been increasing its dividend consistently for the past 25 years or longer. Consider such a firm that has increased its dividend an average of 1.5% per year for over 25 years and is expected to continue to do so in the future. If the most recent dividend paid by this firm is $2.10 and the required rate of return for investing in the firm is 12.3% what is the fair value of the firm stock

answer; /// the above statement is (true);

answerthe above statement is (true);

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.