Answer:
B
Explanation:
Intrinsic value of the stock using the constant growth DDM model = D1 / r - g
D1 = dividend in the following year
r = required return
g = growth rate
Since the growth rate and required rate and growth rate of both stocks are the same, the intrinsic value of both stocks would be equal to :
$7 / 0.12 - .06 = $116.7
Answer:
So yield to maturity will be 11.1 %
Explanation:
We have given final value FV = $1000
Current price = $900
Time is given t = 1 year
We have to find the rate of interest
Future value is given by
, here A is future value and P is current price
So 
r = 11.1 %
Answer:
The statement that is false about mortgage loans is Advertised rates are annual percentage rates.
Explanation:
Mortgage loan refers to a loan that uses real estate as collateral to receive cash upfront to be redeemed after the loan repayment is completed. if the loan is not remitted as at when due , the lender lays claim to the real estate property.
By increasing the number of payments per year you increase your effective borrowing rate.
When you use a spreadsheet to calculate your interest rates, it uses the periodic interest rate, not the annual percentage rate.
You can find a monthly payment by dividing the annual payment by 12.
However, advertised interest rate are not the same as your loan's annual percentage rate (APR) because other charges like mortgage insurance, closing costs, discount points and loan origination fees apply.
The option that will be best in this scenario would be a <span>Parallel test.
In a parallel test, same input will be entered in two different version of simulation. By doing this, we could create multiple simulations to test several possibilities and reducing the total time needed at the same time. The downside is that this test exposes the tester to a high risk of making a mistake.</span>
A blue-chip stock is the stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name.
