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A tall Starbucks coffee costs $1.85 in 2017. If the bank's quoted interest rate is 6% per annum, compounded daily, and if the Starbucks price
- A tall Starbucks coffee costs $1.85 in 2017. If the bank's quoted interest rate is 6% per annum, compounded daily, and if the Starbucks price never changed, what would an endless, inheritable free subscription to one Starbucks coffee per day be worth today?
- Do more or fewer firms pay dividends in the 21st century than in the 20th century? What is the trend?
- In an efficient market, when should the stock price react to the value consequences of a dividend change? Discuss the effect both on the total return and on the capital gain. Which should be larger?
If each of these can be answered with at least one hundred words and with any references it would be highly appreciated :)
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