D.) An account earning interest compounded daily.
This is the account that would have the greatest accumulated value at the end of one year.
Let us assume the following figures.
Principal = 1,000
Interest rate = 12% p.a.
Term 1 year
a) account earning no interest = 1,000
b) account earning simple interest
S.I. = 1,000 x 12% x 1 = 120
Balance = 1000 + 120= 1,120
c) account earning interest compounded annually
FV = 1,000 (1+.12)¹
FV = 1,000 (1.12)
FV = 1,120
d) account compounded daily
FV = 1,000 (1 + .12/365)³⁶⁵
FV = 1,000 (1 + 0.00033)³⁶⁵
FV = 1,000 (1.00033)³⁶⁵
FV = 1,000 (1.128)
FV = 1,128
Answer:
Intrinsic value: $ 45.19290274
The stock is undervalued as is selling for less.
Explanation:
We use the gordon model to solve for the intrinsic value of the share.
we must solve for the grow rate like it was an interest rate:
<u>grow rate: </u>
![2.00 \times (1+g)^{10} = 3.16\\\sqrt[10]{\frac{3.16}{2.00}} -1 = g](https://tex.z-dn.net/?f=2.00%20%5Ctimes%20%281%2Bg%29%5E%7B10%7D%20%3D%203.16%5C%5C%5Csqrt%5B10%5D%7B%5Cfrac%7B3.16%7D%7B2.00%7D%7D%20-1%20%3D%20g)
g = 0.046804808
<u>dividends one year from now:</u>
3.16 x (1 + 0.046804808) = 3.307903193
Now we calculate the instrinsic value:
Value: $ 45.19290274
The stock is undervalued as is selling for less.
After a recession when the economy starts to expand again, firms tend to increase share repurchases faster than they increase dividends.
An economy is the area of production, distribution, trade and consumption of goods and services. Generally, it is defined as a social domain emphasizing practices, discourses, and material expressions related to the production, use, and management of scarce resources.
Economy is defined as the management of community, business, or family financial matters. An example in economics is the US stock market system.
The economy is the system in which goods are produced and exchanged. Without a viable economy, the nation will collapse. There are three main types of economy: free market, command economy and mixed economy.
Learn more about economy here:brainly.com/question/1106682
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Answer:
less
positive
negative
Explanation:
The government sector balance is income from taxes less government spending
Government sector deficit occurs when government spending exceeds income of the government.
When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing
When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors
Answer:
A. reduce output and increase price.
Explanation:
In the case of monopolistic firm at the time of profit maximization, the marginal revenue should be equivalent to the marginal cost i.e.
Marginal revenue = Marginal cost
When the marginal cost rises, the cost of generating an additional unit is also rise to equate MR and MC and at the same time the output would be decreased and the price is increased also the price is more than its marginal cos
Therefore the option A is correct
