Ask question

Ask question

All categories

Thepotemich [5.8K]

3 years ago

13

While there is systematic risk within a nation, it may be ______ and diversifiableoutside the country after constructing a globa

l portfolio?

1 answer:

tresset_1 [31]3 years ago

3 0

<span>While there is systematic risk within a nation, outside the country it may be nonsystematic and diversifiable.</span>

You might be interested in

Indigo Ink Supply paid a dividend of $5 last year on its common stock. It is expected that this dividend will grow at a rate of

pychu [463]

Answer:

a.

1st $5.43

2nd $5.89

3rd $6.39

4th $6.93

5th $7.52

6th $7.81

b.

$75.85

Explanation:

Dividend is the payment to the stockholders out of earning of the company. Companies have a dividend policy which determine the future dividend payments.

Dividend of each year can be calculated by using the growth rate as a discount in the compounding formula.

Dividend Payment

First year = $5 x ( 1 + 8.5% )^1 = $5.43

Second year = $5 x ( 1 + 8.5% )^2 = $5.89

Third year = $5 x ( 1 + 8.5% )^3 = $6.39

Fourth year = $5 x ( 1 + 8.5% )^4 = $6.93

Fifth year =$5 x ( 1 + 8.5% )^5 = $7.52

Sixth year = $7.52 x ( 1 + 3.8% )^1 = $7.81

b.

Intrinsic value of the stock is the present value of all the associated dividends

We need to calculate the present value of all the dividend payment.

First year = $5.43 x ( 1 + 11.5% )^-1 = $4.87

Second year = $5.89 x ( 1 + 11.5% )^-2 = $4.74

Third year = $6.39 x ( 1 + 11.5% )^-3 = $4.61

Fourth year = $6.93 x ( 1 + 11.5% )^-4 = $4.48

Fifth year = $7.52 x ( 1 + 11.5% )^-5 = $4.36

After fifth year the dividend will be discounted as follow

PV of dividend after fifth year = [ $7.81 / (11.5% - 3.8%) ] x [ (1+11.5%)^-6 ] = $52.79

Intrinsic Value of Stock = Sum of PV of all dividends = $4.87 + $4.74 + $4.61 + $4.48 + $4.36 + $52.79 = $75.85

6 0

3 years ago

Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National

dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

<em>Update the Cash Book (Bank Column) Balance</em>

<u>Cash Book (Bank Column)</u>

Debit :

Balance as at August 31 $1,620

Rent collection $375

Total $1,995

Credit :

Service charge $9

Dishonored Checks $137

Printing Charge $20

Error : Understatement $252

Balance as per updated CB $1,577

Total $1,995

Step 2

<em>Prepare a Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement as at August 31</u>

Balance at Bank as per updated Cash Book $1,577

Add Unpresented Checks $756

Less Lodgements not yet credited ($1,695)

Balance as per Bank Statement $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0

3 years ago

When an individual invents a new product and patents it, a writer copyrights and publishes a book, or a company develops a symbo

horsena [70]

Answer:

A. Intangible assets

Explanation:

Intangible assets: They refers to assets that are not physical in nature. They are identifiable, non-monetary assets without physical substance such as brand recognition, intellectual property. Intellectual property includes patent right, copyright, and trademarks.

Intangible assets lice brand names are non physical in nature unlike tangible assets that are phsysical. Examples of tangible assets are building, vehicle, land, machineries and furnitures. They are assets that is expected to generate economic return in the future.

There are two classes of intangible assets

1. Identifiable intangible assets: These are intangible assets that can be separated from other assets such as copyright, trademarks and patent.

2. Unidentifiable intangible assets: They are assets that cannot be separated from other assets such as Goodwill.

5 0

3 years ago

What is valuable goods

tankabanditka [31]

Anything that is possessed with funds or luxury or heirloom items

4 0

3 years ago

When agent Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that:__________

laiz [17]

Answer:

Advertising a similar property can and does create interest in their property

Explanation:

In real estate agents need to effectively market properties in order to sell to consumers.

One way of doing this is by creating awareness in a given market about a particular property type.

When interest in a type of property is created it generates interest that will lead to more sales.

In the given scenario when Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that to capture a market they need to advertise even products that are similar.

As interest grows it will create a demand for that type of property

7 0

3 years ago