Answer: the steady-state amount of investment can be thought of as a break-even amount of investment because: the quantity of investment just equals the amount of: "B) capital needed to replace depreciated capital and to equip new workers."
Explanation: According to the Solow growth model an economy is in a steady state when it makes the most efficient use of its resources. That is, the state in which the saving or investment is equal to the depreciation of capital.
Answer:
Explanation:"C": Spreading risk by investing your money in a variety of funds and investment options.
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Answer and Explanation:
As per the data given in the question,
1)
Fair value per share = $20.4
Number of Share = 2 million
Fair value of award = Fair value per share ×Number of Share
= $20.4 × 2 million
= $40.8 million
2) No Entry
3)
Compensation expense($40.8 million÷4 years) $10.2 million
To Paid in capital - restricted stock($20.4-$10.2) $10.2 million
(Being the compensation expense is recorded)
4)
Fair value per share = $20.4
Share granted = 2 million
(100%-10%) forfeiture rate = 90%
fair value of award = $20.4×2×90%
= $36.72 million
Answer:
$30.80
Explanation:
Intrinsic value
V0=D1/1+k +D2/(1+k)^2 +DH+PH/(1 +k)^H
Let plug in the formula
First step
V0=$1 × 1.2/(1+0.085) +($1 × 1.2)^2/(1+0.085)^2 +($1 × 1.2)^2*1.04/(0.085-0.04)*(1+0.085)^2
Second step
V0=1.2/1.085+1.44/1.007225+1.44*1.04/0.045*1.177225
Third step
V0=1.2/1.085+1.44/1.007225+1.4976/0.052975
Fourth step
V0=1.10599+1.42967+28.26993
V0=$30.80
Therefore the intrinsic value of its stock will be $30.80
