the answer is b:) because high interest rates mean increased cost for all the others since it is not a fixed cost for them
Answer:
The value of its common stock is $29.41
Explanation:
As the Dividend payment is for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Cash flow / Required Rate of return
In this case the present value of perpetuity is the value of stock cash flows is The dividend payment.
Value of Stock = Dividend / Required Rate of return
Value of Stock = $2.5 / 8.5%
Value of Stock = $29.41
Answer:
$8,770.00
Explanation:
In this question we use the present value formula i.e shown in the attachment below:
Data provided in the question
Future value = $0
Rate of interest = 0.48%
NPER = 4 years × 12 months = 48 months
PMT = $205
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $8,770.00
Answer:
b. it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
Explanation:
This is generally what the federal reserve does, and they try to stop both deflation and inflation
