Answer:
$ 75131
Explanation:
Given:
Amount inherited = $ 300000
Present amount of annuity = $ 300000
Interest rate, i = 8% = 0.08
number of years, n = 5
Now,
the formula for the present amount of annuity is given as:
Present amount of annuity = ![P[\frac{1-(1+i)^{-n}}{i}]](https://tex.z-dn.net/?f=P%5B%5Cfrac%7B1-%281%2Bi%29%5E%7B-n%7D%7D%7Bi%7D%5D)
where,
P is the periodic payment
n is the number of years
now, on substituting the values, we get
$ 300000 = ![P[\frac{1-(1+0.08)^{-5}}{0.08}]](https://tex.z-dn.net/?f=P%5B%5Cfrac%7B1-%281%2B0.08%29%5E%7B-5%7D%7D%7B0.08%7D%5D)
or
$ 300000 = P × 3.993
or
P = $ 75131.48 ≈ $ 75131
hence, the amount he can withdraw is $ 75131
Answer:
The correct answer is A. King John’s poor financial decisions and loss of territory
Explanation:
Answer:
Share price : $ 56.23
Explanation:
CAPM
risk free = 0.05
market rate = 0.11
premium market = (market rate - risk free) 0.06
beta(non diversifiable risk) = 1.64
Ke 0.14840
Now, we solve for the present value of the future dividends:
year dividend* present value**
1 2.91 2.53
2 3.31 2.51
3 3.78 2.49
4 4.31 2.48
4 80.38 46.22
TOTAL 56.23
*Dividends will be calculate as the previous year dividends tiems the grow rate
during the first four year is 14%
then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:

(4.31 x 1.09) / (0.1484 - 0.09) = 80.38
Then we discount eahc using the present value of a lump sum:
We discount using the CAPM COst of Capital of 14.84%
last we add them all to get the share price: $ 56.23
Answer:
Liquidity is the term which is stated as the degree to which the asset or the security of the company which can be quickly sold or bought in the market at the price which states its intrinsic value.
In general term, it is defined as ease of converting the asset or security into cash.
Explanation:
The most liquid asset is cash as it is universally accepted and considered to be the standard for liquidity because it is quickly and easily be convertible into other assets., while the other tangible assets like collectibles, real estate are all relatively illiquid.
Liquidity is of different types:
1. Market liquidity - Which refers to the extent of market like stock market, real estate market.
2. Accounting liquidity - It evaluates the ease with which the company or individual could meet or fulfill the financial obligations with the liquid assets which are available to them.
The accounting liquidity is measured with following ratios - Cash ratio, Quick ratio and Current ratio.