Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
B. $32.37
Explanation:
The computation of the maximum price for paying the share today is shown below:
Let us assume the buying price be x
Now we applying the following formula
Return = (sale price - buy price + dividend) ÷ (buy price)
12% = ($35 - x + $1.25) ÷ x
0.12 = $36.25 - x
1.12x = $36.25
x = $36.25 ÷ 1.12
= $32.37
Hence, the correct option is B.
Answer:
$13,316.54
Explanation:
Data provided in the question:
Inflation rate, i = 1.2% = 0.012
Deposits = $11,000
Interest rate, r = 6% = 0.06
Time, t = 4 years
since compounded monthly, number of periods n = 12
Now,
Future value of money with the interest
= Deposits × ![[1+ \frac{r}{n}]^{n.t}](https://tex.z-dn.net/?f=%5B1%2B%20%5Cfrac%7Br%7D%7Bn%7D%5D%5E%7Bn.t%7D)
= $11,000 × ![[1+ \frac{0.06}{12}]^{12\times4}](https://tex.z-dn.net/?f=%5B1%2B%20%5Cfrac%7B0.06%7D%7B12%7D%5D%5E%7B12%5Ctimes4%7D)
= $13,975.38
Considering the inflation,
Amount after 4 years = Future value × [1 - i ]ⁿ
= $13,975.38 × [1 - 0.012]⁴
= $13,316.54
Answer:
2324
Explanation:
the most important idea that you are trying to convey to your reader? The information in each paragraph must be related to that idea. In other words, your paragraphs should remind your reader that there is a recurrent
Answer:
The correct answer is option B.
Explanation:
In a perfect competition firms are price takers and have only normal profits. On the contrary, a monopoly firm are price makers and can have positive profits.
The consumer surplus gets reduced in monopoly and the producer surplus is greater. The profits in the monopoly firm shows the transfer of surplus of benefits from consumers to the producer.
So, option B is the correct answer.