Answer:
The current price of the stock is $93.036
Explanation:
The zero growth dividend model provided by the DDM will be used here to calculate the value of stock today. The stock's dividedn are just like a perpetuity. The value or pirce of a perpetuity is,
P0 = D / r
Where,
D is the dividend
r is the required rate of return
P0 = 3.34 / 0.0359
P0 = $93.036
Answer:
option D - Impress on management its ultimate responsibility for the financial statements and disclosures.
Explanation:
Correct answer is option D:
The written representations are written statements made by management team explaining about the distinct topics and also used as audit evidence.
This document taken as supporting document which is used to confirm other audit. The auditor managed the list of representation to be signed by client.
Answer: The difference in the two future values is $2703.79.
We arrive at the answer at follows:
We need to find the future value of these investments.
<h3><u>
A. First investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 12%
No. of years (n) 7
No. of compounding periods per year (m) 12 (monthly)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3>B<u>
. Second investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 13%
No. of years (n) 7 No. of compounding periods per year (m) 2 (semi-annual)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3><u>C. Difference between the two Future values</u></h3>
Answer:
B. This prospect can be called by the registered representative.
Explanation:
A registered representative may be defined as a person working for a client facing financial firm like the brokerage firm and he acts as the representative for the clients who are trading the investment products as well as securities.
In the context, the prospect can be called by the registered representative. But there are three exceptions that are provided for the cold calls to any individual who are on the national Do not call list :
--- Established business relationship exception.
--- Prior express written consent exception
--- Personal relationship with the associated person exception.
Therefore, option (B) is correct.