Answer:
d. The stock price is expected to be $54 a share one year from now.
Explanation:
Using dividend discount model(DDM), find next year's dividend;
P0 = D1/ (r-g)
50 = D1/(0.14-0.08)
50 = D1/ 0.06
Multiply both sides by 0.06 to solve for D1;
50 *0.06 = D1
3 = D1
Next, year's dividend is $3
Dividend yield = D1/P0;
= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.
Next year's price; P1 = P0(1+g)
P1 = 50(1.08) = $54 hence choice D is correct
Answer:
Normal goods
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls.
I increase my demand for organic fruits and vegetables when my income increased. This shows they are normal goods.
Generic fruits and vegetables are inferior goods.
Inferior goods are goods whose demand falls when income rises and increases when income falls.
I hope my answer helps you
Answer:
The non-partisan organization that has set the rules for U.S. presidential and vice presidential debates since 1987 is discussed below in details.
Explanation:
A non-partisan system is an arrangement of administration or organizations such that general and intermittent elections take place without relating to political parties. there are two types of Non-partisan organizations: De facto and De jure.
The commission of presidential debates was organized in the year 1987 to assure that the debates, as a constant part of every general election. The commission of presidential debate advocate and present debates for the United States presidential and vice-presidential candidate.
Answer:
"Principal" Since the value of common stock could decline to zero, investors do carry the risk of losing their entire principal. That risk is greatly reduced when investing in bonds, because if you hold a bond to its maturity date, you will at least get back the par value ($1000) of the bond.
Hope this helps :) -Mark Brainiest Please :)
Answer:
Clarissa needs to fund the growing perpetuity by $166666.67
Explanation:
A perpetuity is an investment that will give a future series of infinite payments so if the perpetuity gives you a periodic growth rate then you find the difference between the interest rate and the growth rate then use the perpetuity formula which is:
Pv = C/(i-g)
where Pv is the present value of the perpetuity which will be the initial investment.
C is the periodic payments that will be received in future in this case $5000
i is the interest rate given for the perpetuity which is 8%
g is the growth rate per fixed period which is 5%
thereafter we substitute on the above mentioned formula:
Pv= $5000/(8%-5%) then compute
Pv = $166666.67 which will be the initial investment for Clarissa to be paid $5000 per year until she dies.
