Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 5.10, Problem 2ST
To determine
The speculators and the
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Gordon Dividend Growth Model
I downloaded some data about 3M (ticker MMM).
Company
3M
Ticker
MMM
Dividends Per Share
2017
$4.70
2018
$5.44
2019
$5.76
2020
$5.88
2021
$5.92
2022
$5.96
4. The dividend payment in 2022 was $5.96 per share.
Based on the five-year history, we see that dividends per share grew at a compound annual
growth rate of 4.86%
$5.96 (1/5)
CAGR =
$4.70
− 1 = (1.2681)0.20 − 1 = 1.0486 - 1 = 0.0486 = 4.86%
-
-
What should be the 2023 dividend based on these values?
4. The data set BWGHT.DTA contains data on births to women in the United States. Two variables of
interest are the dependent variable, infant birth weight in ounces (bwght), and an explanatory variable,
average number of cigarettes the mother smoked per day during pregnancy (cigs). The following simple
regression was estimated using data on n=1,388 births:
bwght=119.77 - .514 cigs
(i) What is the predicted birth weight when cigs = 0? What about when cigs=20 (one pack per day)?
Comment on the difference.
(ii) Does this simple regression necessarily capture a causal relationship between the child's birth weight
and the mother's smoking habits? Explain.
(iii) To predict a birth weight of 125 ounces, what would cigs have to be? Comment.
(iv) The proportion of women in the sample who do not smoke while pregnant is about .85. Does this
help reconcile your finding from part (iii)?
Given the demand equation Q
following table (using Excel):
=
1,500 200P, calculate all the numbers necessary to fill in the
Elasticity
P
Q Point Arc
Total
Revenue Revenue
Marginal
$7.00
6.50
6.00
5.50
5.00
4.50
4.00
3.50
3.00
2.50
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1STCh. 5.1 - Prob. 2STCh. 5.2 - Prob. 1STCh. 5.2 - Prob. 2STCh. 5.3 - Suppose college students are given two options....Ch. 5.3 - Prob. 2STCh. 5.4 - Prob. 1STCh. 5.4 - Prob. 2STCh. 5.5 - Prob. 1STCh. 5.5 - Prob. 2ST
Ch. 5.6 - Give an example to illustrate that someone may pay...Ch. 5.6 - Prob. 2STCh. 5.7 - Prob. 1STCh. 5.7 - Prob. 2STCh. 5.8 - Prob. 1STCh. 5.8 - Prob. 2STCh. 5.9 - Prob. 1STCh. 5.9 - Prob. 2STCh. 5.10 - Prob. 1STCh. 5.10 - Prob. 2STCh. 5.11 - Prob. 1STCh. 5.11 - Prob. 2STCh. 5.12 - Prob. 1STCh. 5.12 - Prob. 2STCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Prob. 3QPCh. 5 - Prob. 4QPCh. 5 - Prob. 5QPCh. 5 - Prob. 6QPCh. 5 - Prob. 7QPCh. 5 - Prob. 8QPCh. 5 - Prob. 9QPCh. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Prob. 13QPCh. 5 - Prob. 14QPCh. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Prob. 1WNGCh. 5 - Prob. 2WNGCh. 5 - Prob. 3WNGCh. 5 - Prob. 4WNGCh. 5 - Prob. 5WNGCh. 5 - Prob. 6WNG
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