Answer:
The price of the stock today is $42.94
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate is calculated using the constant growth model of Dividend Discount model approach. It bases the price of the stock on the present value of the expected future dividends. The price today under this model is calculated as follows,
P0 = D0 * (1+g) / r - g
Where,
- D0 * (1+g) is the D1 or the dividend for the next year
- r is the required rate of return
- g is the growth rate in dividends
P0 = 4 * (1+0.052) / (0.15 - 0.052)
P0 = $42.938 rounded off to $42.94
Answer: The Consumer Credit Protection Act (CCPA)
Explanation:
In 1968, The Consumer Credit Protection Act was enacted was enacted so that people would only received fair credit practices and also to protect the consumers from harm
According to the CCPA, the total cost that is involved with regards to a loan must be disclosed. Therefore, the federal laws that protects you if you have a complaint regarding consumer credit is The Consumer Credit Protection Act (CCPA).
Answer:
A common market
Explanation:
A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.
A monetary union has all the features of a common market and participating countries have a common currency.
I hope my answer helps you.
Answer: B.) Higher inflation on Ed2020
Explanation:
higher inflation growth in production growth in consumer spending.
Answer:
Please kindly go through explanation for the answers.
Explanation:
A)The required return if Beta is 2 = 0.06+0.08*2 =0.22
B)Here Rf = 0.06
Expected return of the portfolio = 0.4*22% + 0.6*6% =12.4%
since beta of Rf = 0,the expected beta = 0.4*2 = 0.8
C)Beta is nothing but systematic risk of a security in comparing to the market. In this case stock z having beta of 1.5 which is less than beta of stockX i.e 2. and expected return is 15%.so stockz is offering lower return at lower risk. If the investor is a risk averse its a good buy.
D) let W be portion of stock X.
Then w*2 + (1-w)*0 = 1.5
W = 1.5/2 =0.75
to construct a portfolio which has a beta of 1.5 we have to invest 75% of our money in stock X and remaining in risk free asset
E) expected return = 0.22*.75 +0.25*0.06 = 16.5% + 1.5% = 18%
