Answer:
Required rate of return = 10.75%
Explanation:
<em>The value of a stock using the dividend valuation model, is the present value of the expected future dividends discounted at the required rate of return. The required rate of return is the cost of equity
</em>
The model is represented below:
P = D× (1+g)/ ke- g
Ke- cost of equity, g - growth rate, p - price of the stock
This model can used to work out the cost of equity, as follows:
Ke = D× (1+g)/p + g
Ke = (1.48× 1.05)/27 + 0.05
Ke= 0.107555556
Required return = 0.1075 × 100 = 10.75
Required rate of return = 10.75%
I can barely see is that supposed to say gross
Answer: 1.95%
Explanation:
Your after-tax return can be calculated by the formula;
= return * ( 1 - tax rate)
= 2.6% * ( 1 - 25%)
= 1.95%
The typical ideal risky investment offers a higher returns and lower liquidity than other investments
Risky investment are investment which has the property of being risky and usually take long period of time to start yielding higher return for the investors.
Example of Risky investment includes Options, Futures, Stocks Investments, Equity, and other Capital market instruments etc
The advantage of risky investment is that the yield on return are very higher than non-risky investment such as Money market
The disadvantage of the investment is that its offer lower liquidity, that is, the rate at which the investment can be converted back to cash is very slow.
Therefore, the Option B is correct because Risky investment offers higher returns and lower liquidity than other investments.
Learn more about Risky investment here
<em>brainly.com/question/1603761</em>
Answer:
1
Db Cash_____________________ 47.607,04
Cr Mortage payable__________________________47.607,04
2
Db Building____________________350.000
Db Land_______________________225.000
Cr Cash___________________________________575.000
Explanation:
Purchase 575000
Buildings 350000
Land 225000
Kahl
575000
Interest 15%
Monthly Payments 7364,78
1
Cash_____________________ 47.607,04
Mortage payable_____________________________ 47.607,04
PVOrdinary Annuity=C×[i1−(1+i)−n]/i
C=cash flow per periodi 7364,78
i=interest rate 15%
n=number of payments 25
PVOrdinary Annuity=7364,78×[i1−(1+15%)−25]/15%
PVOrdinary Annuity=47607,03
