Answer:
15.7 years
Explanation:
We employ a mathematical approach to solve this;
Present value (PV) of $10 per year at start of year, for n years = $100 (lifetime subscription, life = n years)
Now, we need to get the equivalent amount at the end of each year. This is obtainable from the cost of capital. Which is 7% and that is same as 0.07.
Therefore, we are expecting a value of 1+0.07 = 1.07 and this brings the equivalent amount at the end of each year = 10*1.07
Now, this equivalent amount at the end of each year will give;
(10*1.07)(1.07^n - 1)/(0.07*1.07^n) = 100
Where n is the number of years
n = 15.7 years
Answer:
a. True
Explanation:
from the CAPM formula we can derive the statemeent as true.
risk free = 0.05
market rate = 0.12
premium market = (market rate - risk free) 0.07
beta(non diversifiable risk) = 0
Ke 0.05000
As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility
Answer:
Which of the following issues can be offered to the public under the 1933 Act?
1. An exempt security.
2. A security registered under the Act.
Explanation:
The security's act of 1933 was formulated and passed into law in 1933 to protect investors after the stock market crash of 1929. The law had two major objectives; to enable transparency especially in the financial statements so that investors can make decisions after considering all aspects and also to provide regulations against misrepresentation to discourage cases of fraud in the securities markets.
The security's act of 1933 provided legislation on the sale of securities which was initially governed by the state laws. The law required the companies to register with the Securities and Exchange Commission (SEC) for full disclosure to potential investors. The information is provided to SEC and the potential investors in the form of a prospectus and a statement of registration.
The following issues are including in what can be offered to the public under this act, namely;
1. An exempt security.
2. A security registered under the Act.
However, the SEC does not approve a prospectus therefor issue number three is not true.
Answer:
E) Lateral
Explanation:
Lateral communication ican be regarded as one of the type of communication that involves the imparting as well as exchange of information/ideas among individual in a particular community. This community could be unit of organization that are at
same hierarchical level. It should be noted that the Communication that takes place among members of work groups at the same level is known as Lateral communication