Answer:
5.47%
Explanation:
The computation of yield to maturity is shown in the attachment:
Given that
FV = $1000
PV = ($980)
PMT = 5% ÷ 2 × 1,000 = $25
Number of years = 5 years × 2 = 10 Years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the yield to maturity is
= 2.73 × 2
= 5.46%
Therefore with the help of spreadsheets (as attached), we could explain in a better manner.
Answer:
None of the options are correct as the price today will be $26.786
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach (DDM). The DDM bases the value of a stock on the present value of the future expected dividends from the stock.
The formula for price under constant growth model is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected for the next period
- r is the required rate of return or cost of equity
- g is the growth rate in dividends
However, as the constant growth rate in dividends is to be applied from Year 2 onwards, we will use the D2 to calculate the price at Year 1 and we will then discount this further for one year to calculate the price today.
P1 or Year1 price = 2 * (1+0.05) / (0.12 - 0.05)
P1 or Year 1 price = $30
The price of the stock today or P0 will be,
P0 = 30 / (1+0.12)
P0 = $26.786
Answer: The correct answer is "B. social class".
Explanation: Those who exhibit similarities in occupations, education, and income level, and have similar tastes in style and activities are members of a <u>social class.</u>
In a society the general range of people can be defined as the social class. Within these classes people tend to be similar in terms of occupation, income level, tastes, education, etc.
Answer:
Money multiplier= 1 / reserve requirement
a. Reserve requirement = 0.09
Money multiplier = 1 / 0.09
Money multiplier = 11.11
b. Reserve requirement = 0.25
Money multiplier = 1 / 0.25
Money multiplier = 4
c. Reserve requirement = 0.12
Money multiplier = 1 / 0.12
Money multiplier = 8.33
d. Reserve requirement = 0.04
Money multiplier = 1 / 0.04
Money multiplier = 25
