If the marginal product of capital is 3 percent;the real interest rate is 4 percent;and the capital depreciation rate is 10 percent,what is the equilibrium stock price?

Question

Quizplus · Accepted Answer

The equilibrium stock price cannot be determined with the given information because the marginal product of capital, real interest rate, and capital depreciation rate do not directly provide enough data to calculate stock prices. Additional information such as earnings, dividends, or cash flows would be needed.

If the Marginal Product of Capital Is 3 Percent;the Real