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irga5000
13 days ago
9

You purchased a ticket to the musical Hamilton through a verified reseller for $457.00. When your ticket arrives, you see that t

he face value printed on it is $259.00.
Which of the following is correct?
a.The rate in the secondary market is below the equilibrium price because it falls below the face value.
b.The rate in the secondary market is above the equilibrium price because it exceeds the face value.
c.The face value is above the equilibrium price because the rate in the secondary market is below the face value.
d.The face value is below the equilibrium price because the rate in the secondary market exceeds the face value.
Business
1 answer:
Nady [2.9K]13 days ago
5 0
d. The face value is less than the equilibrium price, as the rate in the secondary market surpasses the face value.
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P14 = $55.69545045394 rounded to $55.70

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The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,

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