Flexible exchange rate systems are calculated according to supply and demand. Every currency decides the type of exchange rate arrangement to uphold.
Answer:
A
Explanation:
Economic risk is the risk that macroeconomic conditions would affect the value of investment .
Examples of economic risks are Recession and inflation
Dana is assigned to create a training program for newly hired mortgage loan officers. She has the "responsibility" to complete this assignment.
<h3>What is mortgage loan?</h3>
A mortgage loan is a secured loan that enables you to access money by giving the lender collateral in the form of an immovable asset, like a home or commercial property.
The main difference between the loan and mortgage loan is-
- Any financial arrangement where one party receives a lump sum and agrees to repay the money is referred to as a "loan."
- A mortgage is a specific kind of loan used to fund real estate. Although a specific kind of loan, not all loans are mortgages. Loans that are "secured" are mortgages.
To know more about the mortgage, here
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Answer:
Share price : $ 56.23
Explanation:
CAPM
risk free = 0.05
market rate = 0.11
premium market = (market rate - risk free) 0.06
beta(non diversifiable risk) = 1.64
Ke 0.14840
Now, we solve for the present value of the future dividends:
year dividend* present value**
1 2.91 2.53
2 3.31 2.51
3 3.78 2.49
4 4.31 2.48
4 80.38 46.22
TOTAL 56.23
*Dividends will be calculate as the previous year dividends tiems the grow rate
during the first four year is 14%
then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:
(4.31 x 1.09) / (0.1484 - 0.09) = 80.38
Then we discount eahc using the present value of a lump sum:
We discount using the CAPM COst of Capital of 14.84%
last we add them all to get the share price: $ 56.23
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