Answer: 35.29%
Explanation:
Municipal Bonds are attractive in that they give the tax benefit of being tax exempt whereas a corporate bond is liable for taxation. The tax rate that will therefore make an investor indifferent between the two bonds is the one that will equate the Corporate bond's yield net of tax to the yield on the Municipal bond.
5.5% = 8.5% * ( 1 - x)
5.5% = 8.5% - 0.085x
0.085x = 8.5% - 5.5%
0.085x = 3%
x = 35.29%
Callaway golf company conducted a one-time survey of golfers and asked them about their attitudes, preferences, and intentions regarding buying custom clubs. this is an example of a(n) "cross-sectional study".
<h3>What is cross-sectional study?</h3>
A cross-sectional study examines data from a group of people at one point in time. Participants throughout this type of research are chosen based on certain variables of interest.
Some key features of cross-sectional study are-
- Cross-sectional studies are common in psychology, but they are also employed in many other fields, such as social science and innovation.
- Cross-sectional studies is observational in nature but are classified as descriptive research rather than causal or relational research, which means they cannot be used to pinpoint the source about something, such as a sickness.
- Researchers collect information from a population, yet they do not change variables.
- This strategy is frequently used to draw conclusions about potential links or to collect early data to enable additional research and experimentation.
To know more about the cross-sectional study, here
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Answer:
Yes
Explanation:
The Desses would have had a stronger argument if the contract was silent in this way because it would have been less likely that there was a designated class of third-party beneficiaries under the contract.
Cheers
Answer:
Share price : $ 56.23
Explanation:
CAPM
risk free = 0.05
market rate = 0.11
premium market = (market rate - risk free) 0.06
beta(non diversifiable risk) = 1.64
Ke 0.14840
Now, we solve for the present value of the future dividends:
year dividend* present value**
1 2.91 2.53
2 3.31 2.51
3 3.78 2.49
4 4.31 2.48
4 80.38 46.22
TOTAL 56.23
*Dividends will be calculate as the previous year dividends tiems the grow rate
during the first four year is 14%
then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:

(4.31 x 1.09) / (0.1484 - 0.09) = 80.38
Then we discount eahc using the present value of a lump sum:
We discount using the CAPM COst of Capital of 14.84%
last we add them all to get the share price: $ 56.23