Answer: $32.05
Explanation:
Beta = 0.7
Dividend = $1.25
Growth rate = 4%
Risk free rate = 3%
Market return = 10%
Since, Required return = risk free rate + beta × (market rate - risk free rate)
We will then slot in the values and.this will be:
= 3% + 0.7 × (10% - 3%)
= 3% + (0.7 × 7%)
= 3% + 4.9%
=7.9%
The price of the stock will then be:
= D1/(Required return-Growth rate)
=1.25 / (0.079 - 0.04)
= 1.25 / 0.039
= $32.05
Answer:
time period
Explanation:
In accounting, the time period principle states that a firm must report its financial statements for specific periods of time. For example, the Securities and exchange Commission (SEC) requires public corporations to submit their financial reports every quarter. This is done in order for accounting periods to be comparable, e.g. comparing a quarterly report vs an annual report is not correct.
Payment is a type of annuity that comprises of equal financial flows that happen at regular periods and last forever.
Describe an annuity.
The goal of nationwide annuities is to increase your retirement income. They are long-term agreements with an insurance provider where you put money. You receive income in the form of recurring payments as compensation for your investment.
many annuity types
There are several different annuity product categories to pick from. Your financial professional can design a strategy to fit your unique objectives, whether you're searching for income possibilities, tools for legacy planning, or spousal protection.
to know more about annuity
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Answer:
I'm hereeeeeeeeee☻︎ eyy how are you?
Paying rent, paying for food, maintaining health care.
