Answer:
Option (B) is correct.
Explanation:
Open market operations is a monetary policy instrument that is used by the Federal reserve for controlling the money supply in an economy. If there is a need to decrease the money supply in an economy then fed sells the government securities to the public and on the other hand if there is a need to increase the money supply in an economy then fed purchases the government securities from the public.
So, here the expansionary policy is to purchases the treasury bills from the public.
I'm pretty sure it is interest
Answer:
accrual method = $4000
cash method = $12000
Explanation:
given data
rent = $1000
time = 12 month
to find out
maximum amount of rent
solution
we know from 1 September mika start paying rent
so September to December = 4 months
so by accrual method
accrual method = rent × time
accrual method = 1000 × 4
accrual method = $4000
and
by cash method
cash method = rent × time
cash method = 1000 × 12
cash method = $12000
Answer:beta
Explanation:Beta is a measure of a stock's volatility in relation to the overall market.
Beta is a component of the capital asset pricing model (CAPM), which is used to calculate the cost of equity funding. The CAPM formula uses the total average market return and the beta value of the stock to determine the rate of return that shareholders might reasonably expect based on perceived investment risk. In this way, beta can impact a stock's expected rate of return and share valuation.
Beta is calculated using regression analysis. Numerically, it represents the tendency for a security's returns to respond to swings in the market. The formula for calculating beta is the covariance of the return of an asset with the return of the benchmark divided by the variance of the return of the benchmark over a certain period.
Answer:
$41.39
Explanation:
Data provided in the question:
Annul Dividend paid, D0 = $2.84 per share
Growth rate, g = 1.85% = 0.0185
Rate of return required, r = 10.4% = 0.104
Now,
Current price of the stock at year 11 = D12 ÷ [ r - g]
= [ $2.84 × (1 + g)¹²] ÷ [ r - g]
= [ $2.84 × (1 + 0.0185)¹²] ÷ [ 0.104 - 0.0185]
= 3.539 ÷ 0.0855
= $41.39