I was stuck on the same thing in my class test. I ended up failing but if I get the answers to it I’ll totally send them to you!!!
Available Options are:
a) growth
b) yield
c) tax consequences
d) liquidity
Answer:
Option D. Liquidity
Explanation:
The reason is that Leslie is worried about having back its money that will be invested in the time of need. So she sure that the amount will be required in the coming future and that she wants to earn a small profit for the time being. So the money worries are also referred to as liquidity concerns.
Answer:
Explanation:
The question is incomplete due to missing data. Hence, I formulated the same as shown below to your ease:
Gross Education Revenue = C* N* (1-D)
where, C = Education Cost per attendee,
N = Number of education attendees
D = Education discount rate
So, this formula is to be copied and pasted in cell J5 to J8.
Answer:
$51,020.41
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
PV = FV × (1 + r) ^ (-n)
PV = 25,000 (1 + 5%) ^ (-1) + 30000 (1 + 5%) ^ (-2)
= 51020.41
Where PV = present value
FV = Future value = 25,000 In year 1 and 30,000 In year 2
I = interest rate = 5%
N = time = 1 ,2
I hope my answer helps you
Answer:
Required Rate of return is 11.6%
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
As we have the value of the share, we need to calculate the required return rate using following formula.
As the dividend is also given for the next period so we don't need to grow it.
Value of Share = Dividend / (Rate of return - Growth rate)
$25 = $1.40 / ( r - 6% )
r - 0.06 = $1.40 / $25
r - 0.06 = $1.40 / $25
r - 0.06 = 0.056
r = 0.056 + 0.06
r = 0.116
r = 11.6%