Answer:
So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1
Explanation:
<em>To determine which project to be selected, we will compute the present value (PV) of the two projects and select the one with a higher PV.</em>
Present value is the today worth of the future cash inflows from a project. The higher the present value the more wealth is been created. So a project with a higher PV is better if two are been compared.
So when comparing two projects, the one with a higher PV is better.
<em>PV of Poject 1 </em>
PV = 52,000 × 1-(1.015)^(-6)
$196,793.10
<em>PV of Project 2</em>
PV = 48,000 × 1- (1.015)^(-8)
$215,391.43
So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1
Answer:
Growth rate is 6%
Explanation:
Po = 
P = 0.3 / (0.1 - 0.06)
P = $75
Dividend growth model is used to calculate the stock price based on the dividend growth.
Find the answers in the explanation below
Explanation:
Cash dividend: Cash dividend is dividend that is paid in cash to shareholders in the event that the company or firm does not need the money for any kind of operation. This means that the company is giving economic value to its shareholders. This transfer of economic value to shareholder means that the shares price of the company will drop. An example is a company having a share dividend of 5%. That means that the price of the company shares will fall by 5%.
Stock dividend: Stock dividend unlike cash dividend is increase stock dividend as well as help stockholders to avoid tax. This subsequently does not increase the value of the company. For example, if stock dividend of a company is 5% and as much as 1 million shares, when stock dividends are declared the stockholder gets extra of 50,000 shares. The stock holder can either keep the shares or sell it to create his own
Cheers
It should be noted that Personal selling requires that sales associates be friendly, knowledgeable, and helpful.
<h3>What is Personal selling all about?</h3>
Personal selling can be regarded as face-to-face selling where someone who is the salesman tries to convince the customer in buying a product.
It serves as a promotional method by which the salesperson uses his or her skills to sell goods.
Learn more about Personal selling at;
brainly.com/question/7156426
Answer:
C. A portfolio consisting of about three randomly selected stocks from different sectors
Explanation:
Standard deviation helps measure risks. It determines market volatility or the spread of asset price from their average price. When the volatility of prices are rapid, standard deviation becomes high which in turn means investment is risky and vice versa. Diversification of investment tend to reduce risk. A portfolio containing a diversified randomly selected stock from three sectors would have a lower standard deviation (risk) than the other portfolios stated in the question.
Diversification is a form of risk management.
