Answer:
it would become worthless
Explanation:
if they keep printing loads of money then the individual Zook dollar would decrease in worth
Answer:
Intrinsic value: $ 45.19290274
The stock is undervalued as is selling for less.
Explanation:
We use the gordon model to solve for the intrinsic value of the share.
we must solve for the grow rate like it was an interest rate:
<u>grow rate: </u>
![2.00 \times (1+g)^{10} = 3.16\\\sqrt[10]{\frac{3.16}{2.00}} -1 = g](https://tex.z-dn.net/?f=2.00%20%5Ctimes%20%281%2Bg%29%5E%7B10%7D%20%3D%203.16%5C%5C%5Csqrt%5B10%5D%7B%5Cfrac%7B3.16%7D%7B2.00%7D%7D%20-1%20%3D%20g)
g = 0.046804808
<u>dividends one year from now:</u>
3.16 x (1 + 0.046804808) = 3.307903193
Now we calculate the instrinsic value:
Value: $ 45.19290274
The stock is undervalued as is selling for less.
For the given question, the summation that represents the money in account is:
The principal amount if compounded annually, the formula that represents the amount to be received after n years is:
where A is the amount received after compounding, P is the principal, r is the rate of interest and t is the tenure.
<h3>Solution:</h3>
Given:
Annual interest rate(r) is 5.5%
Principal is(P) $300
Tenure is(t) 10 years
On substituting the values in the formula
The amount received after compounding at the end of 1 year will be:
Similarly, the amount to be received after 2 years will be:
The amount received after 10 years will be:
upto 10 years
Therefore the summation that represents the money in account after 10 years is:
Learn more about compound interest here:
brainly.com/question/25857212
The correct option is (d); All of the above are correct.
<h3>What is meant by investment from abroad?</h3>
A foreign direct investment (FDI) occurs when a business or investor from outside the country buys a stake in the company.
The phrase typically refers to a commercial decision to buy a sizable portion of a foreign company or to buy it altogether in order to expand its operations to a new area.
Role of the foreign investment for a country are-
- FDI enables the transfer of technology that is not possible through financial investments or trade in products and services, notably in the form of new types of capital inputs.
- The domestic input market can become more competitive with FDI as well.
- In contrast to heavily regulated economies, open economies provide a qualified workforce and high growth prospects for investors.
- There is a long-term commitment involved because there are no short-term capital gains goals.
- FDI increases the manufacturing and service sectors, which leads to job growth and lower unemployment rates in the nation.
- Increased employment increases earnings and gives the populace greater purchasing power, which strengthens a nation's overall economy.
To know more about the primary purpose of foreign direct investment, here
brainly.com/question/14525125
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I understand the question you are looking for-
Investment from abroad Select one: a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.
