Answer: $50
Explanation:
We can use the Gordon Growth Model of Stock Valuation. The formula is thus,
P = D1 / r – g
D1 = the annual expected dividend of the next year
r = rate of return
g = the expected dividend growth rate (assumed to be constant)
There is no growth potential and dividends are expected to stay the same so no growth rate and D1 will be the same as D0.
Plugging that into the formula therefore will give us
P = D1/r
P= 4.5/0.09
= $50
Current Stock Price is $50.
Answer: Option (A) is correct.
Explanation:
Correct Option: Other assets can also be used to make transactions to buy goods and services.
M1 = Currency with public + check-able/Demand deposits + other deposits with RBI
It includes more than just currency with public because there are some other assets as well which are highly liquefied and helps people in buying goods and services.
Check able deposits is one of the component of M1, other than currency with public. People can withdraw these deposits at any point of time which people generally used make transactions for buying goods and services.
Answer:
a. 11.88%
b. -3.68%
Explanation:
Given that
Risk free rate = 6%
Beta = 1.4%
Market rate = 10.2%
Risk free rate = 6%
Alpha return = 8.2%
a. The computation of expected return of portfolio is given below:-
= Risk free rate + Beta (Market rate - Risk free rate)
= 6% + 1.4% (10.2% - 6%)
= 11.88%
b. The calculation of Alpha of portfolio is shown below:-
= Alpha return - Expected return
= 8.2% - 11.88%
= -3.68%
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called a<u>n act of waste</u>.
The diminishing value technique assumes that the cost of a depreciating asset decreases extra within the early years of its effective life.
Basically, you take the number 2 hundred and divide it by the object's effective existence. For instance, 10 years, and specific that as a percentage (two hundred/10 = 20% in this example). The depreciation price applies to the faded cost of the asset after it's been depreciated every 12 months.
In the diminishing value approach, depreciation is calculated on the e-book cost of the asset at the start of the year rather than the precept amount with constant percent. on this, the percentage is identical however depreciation quantity steadily decreases as it's far completed on book value.
Learn more about diminishing value here brainly.com/question/18633836
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