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I need clarification on what a "numerical solution" should be in the context of my economic question. Is it simply a number or numerical value, or is it a formula? I'm not looking for the answer to this problem. I am just making sure i understand the question.  See attached.

I need clarification on what a "numerical solution" should be in the context of my economic question. Is it simply a number or numerical value, or is it a formula? I'm not looking for the answer to this problem. I am just making sure i understand the question.  See attached.

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter31: Capital Markets
Section: Chapter Questions
Problem 2E
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I need clarification on what a "numerical solution" should be in the context of my economic question. Is it simply a number or numerical value, or is it a formula?

I'm not looking for the answer to this problem. I am just making sure i understand the question. 

See attached.

b. At the beginning of period t+5, a completely unexpected "government coup" occurs abroad, and the new government announces that the dividend restriction on international stock will 1last forever. More precisely, the restricted dividend payment schedule announced in the beginning of period t+5 is Ds = Dn = D = D = D = D10 =.... = Do = D' t+42 Dn42 = Dn43 t+6 =... = 0. t+5 t+7 t+8 t+9 t+10 Supposing that this announcement by the new government is believed by everybody, provide ONE equation for the period t+5 nominal price of international stock and ONE equation for the period t+5 nominal price of domestic stock, which should be written as =... t+5 =.. t+5 in which the pair of right-hand sides are for you to determine. (Note 1: As in part a, it is left to you to determine the most relevant steps of logic and/or mathematics and/or graphical analysis that support(s) the conclusion. The conclusion, even if correct, will be awarded ZERO points if there is no or very little support behind it or if the logic/explanation is not sufficiently clear.) (Note 2: The solution for Ss is a precise numerical solution; if your solution for Ss is not a t+5 t+5 precise numerical solution, you may be awarded ZERO points.)
Transcribed Image Text:b. At the beginning of period t+5, a completely unexpected "government coup" occurs abroad, and the new government announces that the dividend restriction on international stock will 1last forever. More precisely, the restricted dividend payment schedule announced in the beginning of period t+5 is Ds = Dn = D = D = D = D10 =.... = Do = D' t+42 Dn42 = Dn43 t+6 =... = 0. t+5 t+7 t+8 t+9 t+10 Supposing that this announcement by the new government is believed by everybody, provide ONE equation for the period t+5 nominal price of international stock and ONE equation for the period t+5 nominal price of domestic stock, which should be written as =... t+5 =.. t+5 in which the pair of right-hand sides are for you to determine. (Note 1: As in part a, it is left to you to determine the most relevant steps of logic and/or mathematics and/or graphical analysis that support(s) the conclusion. The conclusion, even if correct, will be awarded ZERO points if there is no or very little support behind it or if the logic/explanation is not sufficiently clear.) (Note 2: The solution for Ss is a precise numerical solution; if your solution for Ss is not a t+5 t+5 precise numerical solution, you may be awarded ZERO points.)
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