Answer:
Explanation:
a.)
Dividend discount model(DDM) is used to determine the price of a stock.
The formula is as follows;
Price ;P0 = D1 /(r-g)
D1 = Dividend in year 1
r = capitalization rate or required rate of return
g = dividend growth rate
P0 = 8/( 0.10-0.05)
P0 = 160.
The price of the Fi corporation's stock is therefore $160.
b.)
Use the formula that shows the relationship between ROE , retention rate and growth rate. It's as follows;
g = ROE *b
g = growth rate
b = retention rate
Given Earnings per Share (EPS) = $12 and dividend = $8, find dividend payout ratio first.
retention ratio = (1 -dividend payout ratio)
dividend payout ratio = 8/12 = 0.667 or 66.7%
retention ratio ; b = (1 -0.667)
b = 0.333 or 33.3%
Plug it in the formula;
0.05 = ROE * 0.333
ROE = 0.05/0.333
ROE = 0.15 or 15%
c.)
This question is asking for the Present Value of Growth Opportunity (PVGO)
The formula is as follows;
PVGO = Price - EPS1 /r
Price = $160 (from part a)
Expected earnings per share (EPS) = $12
required rate of return(capitalization rate) ; r = 10% or 0.10 as a decimal
PVGO = 160 - 12/0.10
PVGO = 160 -120
PVGO = $40
Therefore, the market is paying $40 per share for growth opportunities.
First you need to find out the amount of insurance coverage needed:
80% of the home value.
(312,500 X .80)
Find that row in the table. Then look in the first column for the amount.
Answer:
American Society of Mechanical Engineers
I think the answer is B: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years.
Answer:
<em>d. high negative affect</em>
Explanation:
Negative affectivity is <em>a wide trait of personality, referring to the stable inclination to suffer negative emotions. </em>
<em>People high in Negative affectivity are much more reluctant to experience negative levels of affective mood over time and irrespective of circumstance. </em>
Same with Jane, she started her new job but experiences emotions of negativity because of the campaign.
They often report further dissociative symptoms and focus on negative stimulation or possibly dangerous situations.
