Did you win or lose?

One way in which international trade results in a higher standard of living?

Whitepunk [10]

I will will engage with this "The more a nation engages in International Trade, the better its Standard of Living will be, because no nation can make everything."

3 0

3 years ago

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea

AleksAgata [21]

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.

Year Workings Present value(PV)

1 $1 × (1.22) × 1.11^(-1) = 1.10

2 $1 × (1.22)^2 ×(1.11)^(-2) = 1.21

3 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend = 21.35 × 1.11^(-2)

= 17.33 (see notes)

The value of the stock = $1.10+ $1.21 + 17.3

= $19.64

Notes:

Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.

The value of the stock = $19.64

8 0

2 years ago

The current price of the common stock of Internet Enterprises is $100. Over the course of a year, the stock's price will either

KATRIN_1 [288]

Answer:

Current value of this newly issued option on Internet Enterprises= $25

Explanation:

Risk free rate for 6 month or period 1= (1000-909.09)/909.09=10%

Risk free rate for 1 year= (1000-826.45)/826.45=21%

Hence, risk free rate for period 2= (1+21%)/(1+10%)-1=10%

Now, Risk free rate factor for period 1 (R1)=1+10%=1.1

Risk Free rate factor for period 2 (R2)=1+10%=1.1

Upward price factor for a period(u)=(1+100%)^(1/2)=1.414

Downward price factor for a period(d)=(1-50%)^(1/2)=0.707

Probability of upward price= (R-d)/(u-d)=(1.1-0.707)/(1.414-0.707)=0.55

Probability of downward price= 1-0.55=0.45

After period 1: Upward price=100*1.414=141.4 with probability 55%

Downward price =100*0.707=70.7 with probability 45%

After period 2:

Upward Price will be =141.4*1.414=200 with probability= 55%*55%=30.25%

Downward price will be=70.7*0.707=50 with probability=45%*45%=20.25%

Mid price will be = 141.4*0.707 or 70.7*1.414=100 with probability =2*45%*55%=49.5%

Now, the highest price the stock can go is $200 with probability 30.25% and it was issued at $100

Hence, expected payoff of the option=30.25%*(200-100)=$30.25

So, current value of the newly issued option= 30.25/(1+21%)=$25

4 0

3 years ago

A difference in quantity of materials used on two comparable jobs may be caused by a.employee carelessness b.poor quality materi

Elodia [21]

Answer: d.All of these choices are correct.

Explanation:

All the above can result in different quantities of materials being used for comparable jobs.

Employee Carelessness can cause more material to be used if they fail to adequately measure the Requirements of a job. If they are also careless in the usage of the material, there will be wastage and therefore a larger use of materials.

Poor Quality Materials can also result in different quantities being used because for instance, more material could be required to do something that a stronger material could have easily done.

Inadequately trained Employees is a major reason for Material Wastage. If employees are not trained by seasoned people who know how to reduce wastage, that knowledge could take time to come to them. If they were adequately trained however, they can master the tricks on wastage avoidance and limit discrepancies in the amount of materials used per comparable jobs.

7 0

3 years ago

A step-wise variable cost can be separated into a fixed component and a variable component.a. Trueb. False

jeka94

Answer:

The correct answer is FALSE

7 0

3 years ago