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astraxan [27]
3 years ago
13

You originally required a risk premium of 6 percent in addition to the rate of return on safe assets before you would purchase s

hares of Techno Company stock. If you and other investors reduce the risk premium you require to 4 percent, the price of Techno Company stock will:
Business
2 answers:
konstantin123 [22]3 years ago
8 0

Answer:

increase

Explanation:

One of the most common ways to determine the price of stocks is by using the Gordon growth model:

  • stock price = dividends / (required rate of return - growth rate)

the require rate of return = risk free rate + risk premium

if the risk premium decreases, then the required rate of return will also decrease. If the RRR decreases, then the denominator in the equation will decrease, and when that happens the value of stocks increases.

shusha [124]3 years ago
4 0

Answer:

The price of Techno Company stock will Increase

Explanation:

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On December 1, Marzion Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $161.
Leni [432]

Answer:

$208

Explanation:

Using the FIFO Inventory method, inventory items are assumed to be sold in the order in which they were purchased from the earliest to the latest.

The order of purchase of the inventory items are.

Jun. 1, DVD Player 1012, $113

Nov. 1, DVD Player 1045, $95

Nov. 31, DVD Player 1056, $88

Therefore, if two of the three items are sold, the cost of goods sold is the cost of the first two items purchased

= 113 + 95 = $208.

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3 years ago
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What are the different elements of working capital and explain actions that Management of a business entity might take to reduce
faltersainse [42]

The different elements of working capital are <u>current current asset and current liabilities</u>. The management of a business entity might take <u>ratio analysis</u> to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

<h3>What is working capital management?</h3>

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

Therefore, learn more about working capital management: brainly.com/question/28287025

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4 0
1 year ago
When did Toronto​ pearson​Airport​(Canada) start​ using​ technology​ or​ scanner​
mote1985 [20]

Answer:

  1. Canada's busiest airport will soon start to use artificial intelligence- powered technology to detect weapons.
  2. The technology can detect both metallic and non-metallic weapons ranging from  guns and knives to explosives, according to Liberty Defense Holdings Ltd., a  Vancouver-based company which first marketed the technology.  Known as Hex wave, the technology works by capturing radar images, then using  artificial intelligence to analyze them for concealed weapons in bags or under clothing.  
  3. Liberty's CEO, Bill Riker explained, "radar essentially is emitting this form of energy,  it's reflecting off a person and it's identifying any items on a person's body that don't  belong on a body."
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7 0
3 years ago
Consider the futures contract written on the S&amp;P 500 index and maturing in one year. The interest rate is 4.2%, and the futu
Anarel [89]

Answer:

$1,534.372

Explanation:

The computation of the expected level of the index in one year is shown below:

= Current index level × 1 + expected rate of return on the market - expected future value of the dividend paid over the next year

= $1,433 × (1 + 8.4%) - $19

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= $1,534.372

We simply applied the above formula so that the expected level of the index in one year could come

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