Answer: $76.92
Explanation:
From the question, Zylo inc preferred stock pays a 7.50 annual dividend, the maximum price that will be willing to be paid for one share of this stock today if the required return is 9.75% will be calculated as:
= Dividend / Required return
= $7.50 / 9.75%
= $7.50/0.0975
= $76.92
The maximum price willing to be paid is $76.92.
You should invest your money to save for future projects or maybe you need it for a life emergency.
Answer: Option D
Explanation: Theory stating that the price level of goods and services directly proportional to the amount of money circulated in the economy is called quantity theory of money.
A. The relation is between GDP and money supply.
B. The statement shows inverse relation between money supply and GDP.
C. Again it shows relation between money supply and GDP.
D. The statement shows positive relation between supply and price level hence it shows quantity theory of money.
Hello!!
A "balance brought forward" is an amount of the money one has from the earlier bill period.
The person who filled out this deposit received $721.50 (from the book).
Good luck :)
Answer:
P0 = $18.5225 rounded off to $18.52
Explanation:
Using the dividend discount model, we can calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+g) / (r - g)] / (1+r)^n
Where,
- D1 is the dividend expected in year 1
- r is the required rate of return
- g is the constant growth rate in dividends
As the dividends will decline after 3 at a constant rate, the g will be -2%.
P0 = 1.33 / (1+0.08) + 1.23 / (1+0.08)^2 + 1.18 / (1+0.08)^3 +
[1.18 * (1-0.02) / (0.08 - 0.02)] / (1+0.08)^3
P0 = $18.5225 rounded off to $18.52