Answer:
Stock price is $68.65
Explanation:
The following image shows the stock price:
Answer:
however
Explanation:
The best of the transitional word or phrase would most efficiently increase the cohesiveness of the following sentences is ''however''
"The company recorded a 11 percent increase in domestic profits, however the company has not been able to establish much demand in foreign countries."
It shows that although the company is doing well domestically by growing its profits, it has not been able to do so internationally.
To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
Answer:
2.2
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
18% = 7% + Beta × 5%
18% - 7% = Beta × 5%
11% = Beta × 5%
So, the beta would be
= 2.2
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.
Answer:
4.16%
Explanation:
to calculate Singapore's economic growth rate we can use the future value formula (we could also use the rule of 72 but it is not very exact):
future value = present value x (1 + r) ⁿ
- future value = 900
- present value = 450
- n = 17
- r = ?
900 = 450 (1 + r)¹⁷
(1 + r)¹⁷ = 900 / 450 = 2
1 + r = ¹⁷√2 = 1.0416
r = 1.0416 - 1 = 0.0416 or 4.16%
