Answer:
The right solution is "$966.27".
Explanation:
Given values are:
Coupon rate,
= 10%
Par value,
= $1000
Yield of maturity,
= 12%
then,
Coupon will be:
=
=
= ($)
Now,
The present value of coupon will be:
=
By putting the value, we get
=
=
=
= ($)
The present value of par value will be:
=
=
= ($)
hence,
The price of bond will be:
=
=
= ($)
Answer:
Start keeping a budget
Explanation:
All of the financial guidance from experts won’t mean much if you don’t know where your money is going every month. Start tracking your spending and set up a budget using a simple spreadsheet or website apps.
Answer:$22.50
Explanation: I took the quiz and got it right
Answer:
B. a dividend yield which is less than that of the average firm
Explanation:
The P/E ratio can be regarded as ratio that give analysis of value that market is willing to pay at the moment with regards to the earnings in past or future. When the P/E ratio is high then
stock's price is considered high compare to the earnings, a low P/E ratio can be interpreted as having low stock price with respect to the earnings. Stocks that has its P/E ratios below 15 are usually regarded as been cheap , those with ratio above 18 are considered expensive. It should be noted that, A company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has a dividend yield which is less than that of the average firm.
Answer:
The answer is = $29.67
Explanation:
Dividend Discount Model will be used and the formula is:
Ke = D1/Po + g
Where Ke is the cost of equity
D1 is the next year dividend
Po is the current share price
g is the growth rate.
Let's find the growth rate first.
g = Ke - D1/Po
= 0.12 - 2/24
0.12 - 0.083
=0.036 or 3.6%
So expected price of the stock in six year's time(future value) is
24 x 1.036^6
=$29.67