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Below are the choices that can be found elsewhere:
a) Gambling
b) Reliance on fixed income
c) Poor investments
<span> d) Cost of living
</span>
The answer is B which is Reliance on fixed income
Answer:
Self-interest helps achieve society's economic goals because as consumers and producers exercise their<u> freedom</u> to act in their own self-interest markets will produce the desired goods at the<u> lowest </u>possible cost.
Answer:
The annualy payment for theamortized loan is $6,802.44
Explanation:
First we will find the total loan payment TP for the $20,000 borrowed over the next four years with a annual return of 8%:
TP = $20,000 *(1+8%)^4
TP = $20,000 *(1.08)^4
TP = $20,000 *1.3605 = $27,209.7
The annual payments AN is obtained by dividing the TP into the 4 years:
AN = $27,209.7 / 4 = $6,802.44
Answer:
The current share price is $71.05
Explanation:
P3 = D3(1 + g)/(R – g)
= D0[(1 + g1)^3](1 + g2)/(R – g)
= [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)
= $90.20
The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:
P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113
= 1.568 + 1.695 + 1.832 + 65.958
= $71.05
Therefore, The current share price is $71.05
Answer:
a. Firm M probably has a higher dividend payout ratio than Firm N.
Explanation:
The dividend payout ratio is commonly referred to a portion of the net income of the company which is paid to the various shareholders in dividends. Therefore, if we consider the statements made in the question, Firm M has a higher annual net income while the annual net income of Firm N is fluctuating, we can conclude that the dividend payout ratio of Firm M is more than that of Firm N.
