Answer:
C. life estate
Explanation:
A life estate is an estate interest in land that lasts for the life time of the life tenant. The holder of a life estate has a full right to possess the property during their life. A life estate is restrictive in that it prevents the beneficiary from selling the property that produces the income before the beneficiary's death. But the estate cannot continue beyond the life of the beneficiary. A major benefit of a life estate deed is that it can be used to pass property upon the life tenant's death without it being part of the life tenant’s estate.
Answer and Explanation:
The formula to compute the required rate of return using the CAPM and constant growth model is as follows
Under CAPM
The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
Constant growth model = Dividend ÷ Price + Growth rate
For Estee lauder,
Under CAPM = 4% + 0.74 × (10% - 4%)
= 4% + 0.74 × 6%
= 4% + 4.44%
= 8.44%
Under the Constant growth model
= $1.70 ÷ $50 + 16.50%
= 19.90%
For Kimco realty,
Under CAPM = 4% + 1.51 × (10% - 4%)
= 4% + 1.51 × 6%
= 4% + 9.06%
= 13.06%
Under the Constant growth model
= $1.68 ÷ $82 + 11%
= 13.05%
For Estee lauder,
Under CAPM = 4% + 1.02× (10% - 4%)
= 4% + 1.02 × 6%
= 4% + 6.12%
= 10.12%
Under the Constant growth model
= $0.60 ÷ $10 + 13%
= 19.00%
That statement is False
If we change units in one of the variables the value increase, decrease, or stay the same
The value of the correlation is the result of the interractions of all the units in that variable, so changing onle one of the variables does not necessarily change the end result of the value.
