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AnnyKZ [126]
3 years ago
14

An example of an economic variable is​ "value of the ​dollar"long dash—which is currently highlong dash—compared with the​ Yen,

Euro, and the Australian dollar. The high dollar results in what economic​ factor(s)? A. The high value of the dollar spurs small business growth and reshoring. B. The high dollar makes U.S. goods more expensive in overseas markets. C. The high dollar makes travel to the United States cheaper for foreigners. D. The high dollar makes traveling abroad expensive for Americans. E. The high dollar has no direct effect on the U.S. trade deficit.
Business
1 answer:
katrin [286]3 years ago
3 0

Answer:

A

Explanation:

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b. the percentage a financial institution pays you to borrow your money
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2 years ago
Megatrends stock will generate earnings of $2 per share this year. The discount rate for the stock is 10%, and the rate of retur
lawyer [7]

Answer:

a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm:

(i) 0% ⇒ g = 0, P₀ = $2/10% = $20

(ii) 20% ⇒ g = 0.2 x 10% = 2%, P₀ = $1.632/8% = $20.40

(iii) 40% ⇒ g = 0.4 x 10% = 4%, P₀ = $1.248/6% = $20.80

b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%.

(i) 0% ⇒ g = 0, P₀ = $2/10% = $20

(ii) 20% ⇒ g = 0.2 x 15% = 3%, P₀ = $1.648/7% = $23.54

(iii) 40% ⇒ g = 0.4 x 15% = 6%, P₀ = $1.272/4% = $31.80

What is the present value of growth opportunities (PVGO) for each reinvestment rate

ROE = 10%, reinvestment rates:

(i) 0%: PVGO = $20 - $2/10% = $0

(ii) 20%: PVGO = $20.40 - $2/10% = $0.40

(iii) 40%: PVGO = $20.80 - $2/10% = $0.80

ROE = 15%, reinvestment rates:

(i) 0%: PVGO = $20 - $2/10% = $0

(ii) 20%: PVGO = $23.54 - $2/10% = $3.54

(iii) 40%: PVGO = $31.80 - $2/10% = $11.80

Explanation:

sustainable growth rate = g = retention rate x ROE

PVGO = stock price - earnings/Re

5 0
3 years ago
In case of an emergency, once you or someone already on the scene has contacted 9-1-1, the next thing to do is: A) Move them to
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3 years ago
Common stock valuelong dash—Variable growth Personal Finance Problem
xenn [34]

Answer:

$24.18

Explanation:

Dividend for year 0 = $2.2

Dividend at year end 1 = $2.2

Dividend at year end 2 = $2.2(1 + .05) = 2.31

Dividend at year end 3 = $2.31 (1 + .05) = 2.4255

Dividend at year end 4 = $2.4255 (1 + .17)= 2.8378

Dividend at year end 5 = $2.8375 (1 + .09)= 3.0932

Dividend at year end 6 = $3.0932 (1 + .09) = 3.371

MPS = \frac{D_{1} }{(1\ +\ k)^{1} }  + \frac{D_{2} }{(1\ +\ k)^{2} } \ +\ \frac{D_{3} }{(1\ +\ k)^{3} } \ +\ \frac{D_{4} }{(1\ +\ k)^{4} }  +\ \frac{D_{5} }{(1\ +\ k)^{5} } \ + \frac{1}{(1\ +\ k)^{5} }  [\frac{D_{6} }{(k\ -\ g)\ ]}

where MPS = Market price of share

          D= Dividend for different years

          k = Cost of equity

          g= constant growth rate after year 5

putting values in above equation we get,

MPS = 1.864 + 1.65 + 1.478 + 1.463 + 1.352 + 0.4371 × 37.462

MPS = $24.18

The maximum price per share that an investor who requires a return of 18% should pay for Home Place Hotels common stock is <u>$24.18</u>

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3 years ago
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<span>If your poll is to accurately reflect public views, your survey respondents must reflect the </span>population.

Hope this helps !

Photon
6 0
3 years ago
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