Enough to buy a Mercedes Benz.
Answer:
a. 8.10%
b. $50,930,776.45
Explanation:
a. The 2018 prize money can be expressed as a compounded amount of the 1898 amount in the manner;
2,640,000 = 230 * ( 1 + rate) ^ 120 years
Year 2018 - 1898 = 120 years
Solving for rate;
2,640,000/230 = ( 1 + rate) ^ 120 years
( 1 + rate) = (2,640,000/230) ^ 1/120
1 + rate = 1.081016
rate = 0.0810
= 8.10%
b. Number of periods = 2056 - 2018
= 38 years
= 2,640,000 * ( 1 + 8.10%) ^ 38
= $50,930,776.45
Answer:
The correct answer is letter "E": Reorganization.
Explanation:
A company reorganization takes place in front of the need for changing operating activities that are not bringing any profit to the organization or whose profit is minimal that it would be convenient to stop those processes. In some cases, reorganizations take place even when the firm has filed for bankruptcy.
Under those circumstances, the objective of the entity is to be forgiven for not meeting its payment obligations for a certain period while restructuring its operations to keep the business up and running.
Answer:
Please sew solution below
Explanation:
a. What are the dividend payout ratios for each firm
Dividend payout ratio = Dividend / EPS
• Payout ratio stock A = $1.30 / $2.6 = 0.5= 50%
• Payout ratio stock B = $1.3 / $1.8 = 0.72222 = 72.22%
b. What are the expected dividend growth rates for each stock.
Growth rate = ROE × (1 - dividend payout ratio)
•Growth rate stock A = 0.08 × (1 - 50%) = 0.04 = 4%
• Growth rate stock B = 0.05 × (1 - 72.22%) = 0.01389 = 1.39%
c. What is the proper stock price for each firm
• Stock A
Price = D1 / (Re - g)
D1= $1.30 * (1 + 0.04)
= 1.352
Stock B
Price = D1 / (Re - g)
D1= $1.30 * (1 + 0.013)
= 1.3169
Therefore,
• Stock A's proper price = $1.352 / (0.08 - 0.04) = $33.8
• Stock B's proper price = $1.3169 / ($0.08 - $0.013) = $19.66
Answer: A mutal fund is a professionally managed investment fund that pools money from many investors to purchase securities. the term is typically used in the United States, Canada, and India while simular structures across the globe include the SICAV in Europe and open-ended investment company in the UK.
Explanation: