The Stevensons because having the option to return could create a situation where The Pattersons have contradictory options. Contradictory options create discomfort according to cognitive dissonance.
The required return on the stock is 9.9%.
Stock:
- A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
- Stocks represent ownership in a publicly traded company. You take a stake in a firm when you purchase its shares. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company.
- Stocks are not actual assets; they are financial assets. Paper assets that are easily convertible to cash are referred to as financial assets. Real assets have inherent worth because they are tangible.
- The required return on the stock=dividend yield + Growth rate
- which is equal to' =(4.3+5.6)
- =9.9%
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Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Year A B
0 -$6000
1 -$500
2 -$1000
3 -$1500
4 -$2000
5 -$2500
-$6000 -$7500
We don´t have enough information to determine which project is the best. We need the cash flow of Project B.
But, I can provide with the Net Present Value (NPV) formula and calculate the NPV of project A. The project with the higher NPV is more profitable.
To calculate the Net present value, we need to discount the cash flows.
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Project A:
NPV= -6,000 + 500/1.09 + 1,000/1.09^2 + 1,500/1.09^3 + 2,000/1.09^4 + 2,500/1.09^5
NPV= -$499.65
Answer:
Physics
Explanation:
Opportunity Cost
When an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice.
Since Arshad is concerned about his mid-career salary, Physics has the highest mid-career salary among the options, therefore opportunity cost of choosing to major in communications would be Physics
Answer:
Explanation:
Option A temporary is the correct answer