Answer:
C
Explanation:
Cost=10000
Accumulated depreciation=3000
Sales price=9000
Net value=10000-3000=7000
Gain=9000-7000=2000
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Answer:
The correct answer is option a.
Explanation:
The bureau of labor statistics calculates the data regarding the unemployment rate in the US economy. It calculates the unemployment rate as the ratio of total unemployed to the total labor force.
Those people who are having a job or business and are working for profit or those who are currently unemployed and looking for jobs are included in the labor force. Students, retirees, and discouraged workers are not included in the labor force.
Here, Christopher is neither working for profit nor looking for work so he will not be considered unemployed or in labor force.
