When the required rate of return for such stocks is 20 percent, the current price of the stock is 15.63.
<h3>What is stock?</h3>
Stock in finance refers to all of the shares that make up a corporation's or company's ownership. A single share of stock represents fractional ownership of the corporation based on the total number of shares. A stock is a broad term that refers to any company's ownership certificates.
The price will be calculated thus:
D1 = 1.25
D2 = 1.25 × (11+.40)
D3 = 1.25 × (1+.40) × (1+.20)
D4 = 1.25 × (1+.40) × (1+.20)^2
P4 = 1.25 × (1+.40) × (1+.20)^2 × (1+.08)/(.20 - .08)
Note that d is the dividend.
Current Stock Price = 1.25/(1+.20)^1 + 1.25*(1+.40)/(1+.20)^2 + 1.25*(1+.40)*(1+.20)/(1+.20)^3 + 1.25*(1+.40)*(1+.20)^2/(1+.20)^4 + 1.25*(1+.40)*(1+.20)^2*(1+.08)/(.20 - .08)*(1+.20)^4 = 15.625 or 15.63
Therefore, the current price is 15.63.
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Crusoe's opportunity cost for producing a pound of berries would be 0.4 pounds of fish.
<h3>What is the opportunity cost of the fish?</h3>
This can be found as:
= Change in quantity of fish / Change in quantity of berries
Solving gives:
= (30 - 26) / 52 - 42
= 4 / 10
= 0.4 pounds of fish
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Answer:
Integrity
Explanation:
Computer Security
The security of computer systems are very important for any organizations. There is the need to secure the physical location of computer technology from outside threats. That is necessary actions are to be taken to preserve computer systems from losses.
CIA Triad
This is known to be the industry standard for computer security since the development of the mainframe. The standard is based on three characteristics that describe the utility of information: they are :
1. Confidentiality
2. Integrity,
3. Availability.
Integrity
This is simply refered to as a quality or an attribute of information that states or explain how data is whole, complete, and uncorrupted.
Answer:
We are going to pay $892.137 or less for the bonds.
Explanation:
We need to calculate the present value of the bond at 11% interet rate
Cashflow from the bond:
Principal x interest = interest service
1,000 x 9.5% = 95
Present value of annuity of 95 during 15 year at 11%
Present value of the interest service 683,1326097
Second we have to calculate the present value of the 1,000 principal in 15 years
209.0043467
Finally we add both together for the present value fothe bond at our rate
209.0043467+ 683,1326097 = 892.1369564 = 892.137