All categories

3 years ago

What is another name for a closely held corporation?

1 answer:

3 0

What is a 'Closely Held Corporation<span>' A </span>closely held corporation<span> is any company that has only a limited number of shareholders; its stock is publicly traded on occasion but not on a regular basis. These entities differ from privately owned firms that issue stock that is not publicly traded.

Hope this helps!

</span>

You might be interested in

What is globalisation

Irina-Kira [14]

Globalization is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information

3 0

2 years ago

Assume that you own an investment that will pay you $15,000 per year for 12 years, with the first payment today. You need money

vlabodo [156]

Answer:

the rate of return is 8.41%

Explanation:

given data

Present value = $120,000

Future value = $0

PMT = $15,000

NPER =12 years

solution

We will applied the rate formula that is.

The NPER reflects the time period.

and formula is that

NPER = Rate(NPER;PMT;-PV;FV;type)

so we get here

the rate of return is 8.41%

8 0

3 years ago

stock that has a current price of $25.00, a beta of 1.25, and a dividend yield of 6%. If the Treasury bill yield is 5% and the m

photoshop1234 [79]

Answer:

$30.2067

Explanation:

From the given question, using the dividend discount model

$V_0 = \dfrac{D_1}{r - g}$

where:

r is the Expected return on stock and be calculated as:

Expected return on stock = Risk free rate + Beta × (Expected Market Return - Risk free rate)

Expected return on stock = 5% + 1.25 × (14% - 5%) = 16.25%

However, the current price in this process will b used as the dividend price for all future expenses.

Dividend Yield = Current Dividend/The Share Price

Current dividend D0 = 6% × $25.00 = $1.50

D₁ = D₀ × (1 + g)

D₁ = 1.5 × (1 + g)

Thus, we can now employ the use of the growth dividend model (constant) to determine the value of g as follows:

$25 = \dfrac{1.5 \times (1 + g)}{0.1625 - g}$

By cross multiply, we have:

4.0625 - 25g = 1.5 + 1.5g

collect like terms, we have:

4.0625 - 1.5 = 1.5g + 25g

2.5625 = 26.5g

Divide both sides by 26.5, we have:

2.5625/26.5 = 26.5g/26.5

g = 9.67%

Similarly, suppose the value for the second year-end to be Y₂;

Then the constant growth dividend model can be computed as:

$Y_2 = \dfrac{D_3}{r - g}$

where;

D₃ = D₂ × (1 + g)

D₂ × (1 + g) = D₁ × (1 + g) × (1 + g)

D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g)

D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g) = D₀ × (1 + g) × 3

D₃ = 1.5 × (1 + 9.67%) × 3

D₃ = $1.9876

Finally:

$Y_2 = \dfrac{D_3}{r - g}$

$Y_2 = \dfrac{1.9876}{0.1625 - 0.0967}$

Y₂ = $30.2067

7 0

3 years ago

The utility created by making a product available at a location where customers wish to purchase it is called _________ utility

Vaselesa [24]

Place utility is created by making a product available at a location where customers wish to purchase it.

6 0

3 years ago

A customer buys 100 shares of DEFF stock at $150 per share. During the first year of owning the stock, the customer receives $45

Vlad [161]

Answer:

The total return on investment for the holding period is 10.5%.

Explanation:

If the consumer bought 100 shares for a value of $ 150, obtaining after a year $ 450 total for dividends and seeing his shares go to a value of $ 161.25, to obtain the total return on investment we must perform the following calculations:

On the one hand, we have a return of $ 450 in dividends, which were paid by the total set of 100 shares, with which each share paid $ 4.50 in that concept.

In addition, we have the increase in the value of the shares, which went from $ 150 to $ 161.25, that is, an increase of $ 11.25 per share, which multiplied by the total of 100 shares gives a total sum of $ 1,125.

Thus, adding the dividends to the improvement in the value of the shares, we have a total profit of $ 1,575. Now, to determine the percentage of return that said sum represents, we must perform a cross multiplication:

15,000 = 100

1,575 = X

(1,575 x 100) / 15,000 = X

10.5 = X

So, the rate of return on this investment is 10.5% of the starting value.

4 0

3 years ago