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If the marginal product of capital is 3 percent, the real interest rate is 4 percent, growth is 2.5 percent, and the capital depreciation rate
If the marginal product of capital is 3 percent, the real interest rate is 4 percent, growth is 2.5 percent, and the capital depreciation rate is 10 percent, what is the equilibrium stock price?
a. $166.67 d. $1.88
b. $500.00 e. $0.01
c. $0.40
I still detailed calculation about this, thanks!
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