Answer:
P0 = $14.4683 rounded off to $14.47
Explanation:
To calculate the market price of the stock today, we will use the constant growth model of DDM. The constant growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 is the dividend today
- g is the constant growth rate
- r is the required rate of return on the stock
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.06 + 1.6 * (0.147 - 0.06)
r = 0.1992 or 19.92%
Using the price formula for DDM above, we can calculate the price today to be,
P0 = 1.9 * (1+0.06) / (0.1992 - 0.06)
P0 = $14.4683 rounded off to $14.47
Answer:
$2,000 biweekly; hourly rate 10 hours; overtime is 8 hour
Explanation:
Sorry if this is worng I pretty sure I am right. Sorry, I did this qustion last year and I may have got something worng above so use this anwser if you would like.
Answer:
- How much should be invested in each type of investment in order to maximize the return?
Invest Value Invested
Gov Bonds $40,000
Mutual F $40,000
Market F -
TOTAL $80,000
- What is the maximum return in the first year?
Invest Expected Ret. Portfolio
Gov Bonds 4,0%
Mutual F 7,0%
Market F 0,0%
TOTAL 11,0%
Explanation:
The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds.
As Mutual Funds have the higher returns, it means that it's necessary to invest as much as we can in these financial instruments.
If there is no requirement of invest something in the market funds, then to maximize yield, the best option is to invest 50/50 between Government Bonds and Mutual Funds.
Answer:
Semi-annual interest =$11,700
Explanation:
The semi annual interest = coupon rate × nominal value× 1/2
= 9% × 260,000× 1/2
=$11,700
The interest has to be pro rated into two to account for 6 months
Answer:
a. Identify a cost driver associated with each activity.
Explanation:
While setting up the new activity based costing system he presently completed the identification of the activities and the cost of overhead is associated with each kind of activity
Now the next step in the activity based costing is to have a identification of the cost driver that associated with each kind of activity
Here cost driver means number of machine hours, number of machine setups, etc
Therefore the first option is correct
