Answer:
Gordon's Pretax return is 13.015%
Explanation:
Dividend yield of Gordon =2.9% =0.029
Tax rate = 35% =0.35
Gordon's after-tax return = Gecko's after-tax return =12
% (This is because the capital gains tax is zero)
Using the formulae
After-tax return of Gordon= Capital gains yield + Dividend yield x (1-tax rate)
0.12 = Capital gains yield + (0.029 x ( 1 - 0.35)
0.12 = Capital gains yield + (0.029 X 0.65)
0.12 = Capital gains yield + 0.01885
Capital gains yield= 0.12 -0.01885 =0.101155
Pretax return is given as
Capital gains yield + Dividend yield
= 0.101155+ 0.029 =0.13015 x 100=13.015%
Therefore, Gordon's Pretax return is 13.015%
The U.S. Treasury is responsible for printing the money.
Answer: –0.0130
Explanation:
Correlation given the variance and the standard deviation of the two returns can be calculated by;
Correlation coefficient = Covariance of returns on investment A and B / (Standard deviation of return on investment A * Standard deviation of return on investment B).
Rearranging the formula, Covariance becomes;
Covariance of returns on investment A and B = Correlation coefficient * (Standard deviation of return on investment A * Standard deviation of return on investment B)
Covariance of returns on investment A and B = -0.260 * 0.25 * 0.20
Covariance of returns on investment A and B = –0.0130
Answer:
Following are the two reasons for why someone looking at a career in the Energy cluster might want to focus on new technology, such as energy-efficient products or sustainable energy;
- Energy efficient technologies are now found in most energy conversion chains. For example from production of primary energy resources to power generations.
- Technology helps to improve the conversion of energy better. For example the conversion of wasted energy released in the form of heat.
Following are the two examples of careers that may work with these new energy technologies;
- A career in renewable energies which use high end technologies.
- A career in generating energy from natural resources like the solar energy from the sun.
Answer:
13 years
Explanation:
As for the provided information, we have
Present value annuity factor required = 
Now provided interest rate = 6%
With this interest rate as in the future values for a series of same amount , we see that for 13 years the value = 8.8526
This can even be calculated as follows:
As with this we can confirm our answer.
Therefore, number of years = 13 years.
