I guess the correct answer is $32.14
Zeta Corporation just paid a $2.00 dividend. Analysts believe that Zeta Corporation’s dividend will grow by 20% next year, and then settle into a constant growth regime at 5% per year into the future. If investors assign a required rate of return of 12% to Zeta’s stock, the stock sell for today is $32.14.
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
Answer:
B
Explanation:
Marketing strategies vary in effectiveness depending on what kind of customer you're trying to sell to. A product that is designed for the younger generation wouldn't sell that well in a newspaper, a medium that is mostly used by older consumers.
Answer:
The number of equivalent units of production in the June 30, Finishing Department inventory is 575 units.
Explanation:
In order to calculate the number of equivalent units of production in the June 30 Finishing Department inventory, we would have to use the following formula:
Equivalent unit of production = (Beginning WIP*percent completion)+Unit started and completed+(Ending WIP*percent completion)
5,200 = (1,500*75%+3,500)+X
5,200 = 4,625+X
X(Equivalent unit of ending WIP) = 5,200-4,625 = 575
The number of equivalent units of production in the June 30, Finishing Department inventory is 575 units
Answer:
1.25
Explanation:
1000*(1+x)^8 = 2203.76
(1+x)^8 = 2203.76/1000
(1+x)^8 = 2.20376
Taking root of both side
(1+x)^8^(1/8) = 2.20376^(1/8)
1 + x = 1.10381308235
x = 1.10381308235 - 1
x = 0.10381308235
x = 10.38%..............(Equ 1)
1000*((1+y)^5)*((1+x)^3) = 1990.76
1000*((1+y)^5)*1.344889 = 1990.76
((1+y)^5) = 1.48024
Taking root of both side
((1+y)^5)^(1/5) = 1.48024^(1/5)
1+y = 1.08159937381
y = 1.08159937381 - 1
y = 0.08159937381
y = 18.15995%...........(Equ ii)
J = (((1+y)^1/2)-1)*2
J = (((1+0.08159937381)^1/2) - 1)*2
J = (1.039999698947072 - 1)*2
J = .039999698947072 * 2
J = 0.079999397894144
J = 7.9999%
J = 8%
K = (((1+x)^1/4)-1)*4
K = (((1+0.10381308235 )^1/4)-1)*4
K = 10%
So K/J = 10/8 = 1.25
