Answer:
B. An online bank has lower operating costs than a retail bank
Answer:
$52
Explanation:
Data provided as per the question
Recent dividend = $2
Market rate of return = 8%
Growth Rate = 4%
(Its expected to increase so it will be (1 + 4%) = 1.4%
The computation of price is shown below:-
Price = Recent dividend × (1 + Growth rate ) ÷ (Cost of equity - Growth rate)
= ($2 × 1.04) ÷ (0.08 - 0.04)
= $2.08 ÷ 0.04
= $52
If the homeowner continues to default on the loan, the lender will foreclose on the house. ... A foreclosure sale / auction is typically the next thing that happens during the process. The lender wants to get the home off their hands as quickly as possible, so they'll usually price it to sell quickly
