Answer:
Explanation:
1)
Stock’s current price:
= P/E Ratio×EPS
= 12×$3
= $36
2)
Price of Stock = Annual Dividend / Discount Rate
Price of Stock = $6.00 / 0.08
Price of Stock = $75.00
3)
Price of Bond = Quoted price * Par Value
$982.50 = Quoted price * $1,000
Quoted price = 98.25
5)
D1 = Dividend yield *price = 0.08 *25 = $ 2
D4 = D1(1+G)^N
D4 = 2(1+.06)^3
D4 = 2* 1.19102
D4 = $ 2.38 per share
The answer is Boxplot II. The standard deviation for the data associated with Boxplot II will likely have a larger standard deviation. Boxplot II has a greater spread than Boxplot I, as measured by the interquartile range, which is related directly to the standard deviation of a data set.
Answer:
D)The yield to maturity of a callable bond is calculated as if the bond were called at the earliest opportunity.
Explanation:
The callable bond should be trade at the less price so it would generate the high return as compared with the non-callable bond. Whenever it is low it generated the high return but it could not increase over and above to the call value at the time when the yield is less. Also prior to the call date the investors expected that the issuer would follow and the price of the bond represent the given strategy
but the yield to maturity should not be measured at the time when the bond can be called
Therefore d option should be considered
Answer:
Her debt to income ratio is classified as favorable
Explanation:
The given information are;
Elysha's gross monthly income = $3,000
The amount she pays as debt each month = $500
Therefore, her debt to in to income ratio, DTI, is given as follows;
DTI = (Amount payed as debt)/(Gross income) = $500/$3,000 ≈ 0.167
We multiply by 100 to express the result as a percentage, to get;
0.167 × 100 = 16.7%
Given that her debt to income ration is less than 35%, her debt to income ratio is classified as favorable and she has a manageable debt.
