Answer: D) Daily Compounding
Explanation:To earn as much interest as possible, Anthony should open a savings account that earns compound interest and has the highest interest rate.
Daily compounding is compounded every day, hence Anthony will get the best rate of return on his interest with this.
Answer:
Option B.
Statement B because demand and supply intersect; they do not exceed each other
Explanation:
This is because in statement A equilibrium is not attained as demand exceeds supply and supply may also exceed demand. In statement B, changes in supply and demand is causing changes in prices. Thus , new equilibrium will be attained and prices adjusting to attain equilibrium and remove excess demand or excess supply.
While one grows, you start to mature and when you mature you "change".
Answer:
The correct choice is C)
The most logical thing to do would be to calculate the value of the stock in 5 years time.
Explanation:
This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.
The formula for the DDM, which assumes constant growth in dividends, is provided below.
P0 = D1/(r-g)
Where,
P0 = intrinsic value of stock
D1 = dividend payment one year from today
r = discount rate
g = growth rate
Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:
t0 = $0
t1 = $0
t2 = $0
t3 = $0
t4 = $0
t5 = $0.20
t6 = $0.20 * 1.035
Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.
Based on the information above, we are able to prove that the answer is '5'.
Cheers!
The right answer for the question that is being asked and shown above is that: "c could no longer speculate on stock." In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers <span>c could no longer speculate on stock.</span>