Disney starts off its stars with Disney Channel shows, records them on the Disney-owned Hollywood Record label, plays the songs
2 answers:
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Answer:
current price = $33.28
for 3 year current price = $37.54
for 15 year current price = $60.82
Explanation:
given data
dividend = $1.95 per share
rate = 4.1 %
return = 10.2 %
to find out
current price , price in 3 year and 5 year
solution
we will apply here current price formula that is
current price = dividend / ( return rate - rate ) ...............1
put here value
current price = 1.95 × (1.041) / ( 10.2 - 4.1 )
current price = 2.03 / 0.061
current price = $33.28
and
for 3 year from equation 1
current price = dividend / ( return rate - rate )
current price = 1.95 × / ( 10.2 - 4.1 )
current price = 2.29 / 0.061
current price = $37.54
and
for 15 year
from equation 1
current price = dividend / ( return rate - rate )
current price = 1.95 × / ( 10.2 - 4.1 )
current price = 3.71 / 0.061
current price = $60.82
The effective interest rate is greater by 0.72 percentage points as compared to the nominal interest rates.
Computation:
Given,
Nominal Interest rate =11.85%
compounding period = weekly, that is 52.
The formula of the effective interest rate will be used:
Now, the difference of the effective interest rate and nominal interest rate will be determined to know the exceeding percentage:
Therefore, option a. 0.72 percentage points is correct.
To know more about the effective interest rates, refer to the link: