With a credit card, you’re only liable for up to $50 of unauthorized activity, no matter when you report it. If your card wasn’t present in the unauthorized transaction, you have zero liability. <span>With a debit card though, you have no liability if you report it stolen. If you report the loss within two days of learning about fraud or theft, you can be liable for up to $50. After that, however, your liability goes way up almost $500. </span>
Answer: E- create annual taxable income to individual bondholders
Explanation: Zero coupon bonds are bonds that are sold or bought by investors lower than the face value of the bond. they are long term bonds that do not generate interest throughout the life of the bonds.
These bond are usually issued by the US Treasury, Corporations, Local and state Government.
Bond owners can only make money on bond as the price in the market fluctuates against the face value. No payment is made on these bonds until maturity which is a long time say 10 to 15 years.
On these bond investors may have to pay income taxes on the interest that accrue on the bond yearly.
Based on the returns on Digital Cheese and Executive Fruit, the variance and standard deviation of each stock is:
Variance:
- Digital cheese = 56.8
- Executive fruit = 34.8
Standard deviation:
- Digital cheese = 7.5
- Executive fruit = 5.9
This means that Digital Cheese is riskier if held alone.
<h3 /><h3>What are the variances and standard deviations of the stock?</h3>
Using a spreadsheet, one can order the given returns and then find the variance using mathematical functions.
When this is done, the variances on Digital cheese and Executive fruit would be 56.8 and 34.8 respectively.
You can then take the square roots of these variances to find the standard deviations as 7.5 and 5.9 respectively.
Because Digital Fruit has a higher standard deviation, it is considered to be riskier in terms of returns.
Find out more on the standard deviation of returns at brainly.com/question/17191184.
#SPJ1
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
