When it comes to the calculation of a loan balance, the factor that increases this amount is the <u>interest capitalization. </u>
Interest capitalization:
- Is unpaid interest that has accumulated.
- Is added to the loan principal.
As a result of this unpaid interest being added to the loan balance, the loan will increase in size and the interest will then be calculated using this new balance thereby increasing the interest payments as well.
In conclusion, the answer is interest capitalization.
Find out more on interest capitalization at brainly.com/question/16340851.
Answer:
current share price is $71.05
Explanation:
given data
grow at a rate = 20 percent
time = 3 year
growth rate falling off = 8 percent
dividend = $1.45
solution
we get here price of the stock in Year 3 that is 1 year before the constant dividend growth that is
P(3) = D(3) × (1 + g) ÷ (R - g) .............1
P(3) = D0 (1 + g1)³ × (1 + g2) ÷ (R - g)
P(3) = 
P(3) = $90.206
and
then price of the stock today is present value of first three dividends + present value of the Year 3 stock price
so price of the stock today is
P(0) = 
P(0) = $71.05
Interactive is the answer
Answer:
It's A.
Explanation:
Can i please have brainlest.
Answer:
Risk free rate(Rf) = 1.5%
Market return(Rm) = 8%
Beta(β) = 0.8
ER(P) = Rf + β(Rm – Rf)
ER(P) = 1.5 + 0.8(8-1.5)
ER(P) = 1.5 + 0.8(6.5)
ER(P) = 1.5 + 5.2
ER(P) = 6.7%
Alpha = Annual average return - ER(P)
= 7.2% - 6.7%
= 0.5%
Explanation:
In this case, we will calculate the expected return on the stock based on CAPM. Thereafter, we will calculate alpha by deducting the expected return from annual average return.
