Answer:Expected return on stock = 10.64%
Explanation:
According to CAPM,Capital Asset Pricing Model CAPM, The expected
return on stock is given as
Er = Rf +β( Mr - Rf)
which means
Expected = Risk free rate + Beta x (Market rate - Risk free rate)
Therefore,
Expected return on stock = 2.4% + 0.88 x (12.1% - 2.4%)
=2.4% +0.88 (0.118)
=2.4% +0.10384
= 0.1064
10.64%
Expected return on stock = 10.64%
$2,000 is the amount of money that the Development associates may recover. When the Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000 then the price of the land on the agreed date is only $15,000. So the DA may recover the $2,000.
Answer:
Inventories refer to goods that have been produced but not yet sold.
Explanation:
Inventories or Stock refer to goods that have been produced but not yet sold. It also means goods that have been purchased by the company with the intention of selling them for profit. Once goods are sold, they are erased from the inventory records and transferred to the sales accounts, and only 'goods available for sale' will primarily classify as inventory.
Furthermore, there is also 'raw material inventory' which is the goods that have been bought to be used in production.
Answer:
a. will be higher than the present value of stock B
Explanation:
Use the formula for dividend discount model (DDM) to calculate the price of each stock;
<u>For Stock A</u>
Price = Div1 /(r-g)
where Div 1 = next year's expected dividend
r = required rate of return
g = dividend growth rate
Price = 4 / (0.10- 0.06)
Price = $100
<u>For Stock B</u>
Price = Div1 /(r-g)
Price = 4 / (0.10 - 0.05)
Price = $80
Therefore, the intrinsic value of stock A will be higher than the present value of stock B
Answer: The workers in another department do the programming needed to fix the problems
Explanation:
Every organization has job roles and task for which individuals where employed for and in most cases workers are not really permitted to do beyond their task unless they are asked to do so by the organization or they are asked by their colleagues to assist them, despite Andrew taking classes in software training, he would still need approval from the organization before he can carry out task in another department.
