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

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?