Answer: Rylan's stock would sell for $21.96 at the end of the four years
Explanation:
PV = Current Price = $31.27
D = Dividend paid each year =$5.70
r = Equity cost of capital = 12%
FV = Price of Rylan's stock at the end of four years = ??
N = Number of years = 4
PV = D ![[\frac{1 - \frac{1}{(1+r)^{N} } }{r} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B1%20-%20%5Cfrac%7B1%7D%7B%281%2Br%29%5E%7BN%7D%20%7D%20%7D%7Br%7D%20%5D)
+ 
31.27 = 5.70 ![[\frac{1 - \frac{1}{(1+0.12)^{4} } }{0.12} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B1%20-%20%5Cfrac%7B1%7D%7B%281%2B0.12%29%5E%7B4%7D%20%7D%20%7D%7B0.12%7D%20%5D)
+ 
Solve for FV,
FV = $21.96
Rylan's stock would sell for $21.96 at the end of the four years
Answer:
SCENERIO 1=BOND
SCENERIO 2=LOAN
SCENERIO 3=STOCK
SCENERIO 4=SECURITIES WHICH ARE GUARANTEED BY LOANS
SCENERIO 5=LOAN
Explanation:
Bond is a type of loan or a financial instrument through which large corporations or Government Institutions borrow money from the public with the aim of paying with a fixed interest rate in a given period.
A Loan is amount requested by an organisation from a financial institution with the aim of paying back with some percentage of interest over a given period of time.
Stocks are also known as shares which forms parts of a particular Company sold to the public with the aim of raising capital, SHARES OR STOCK HOLDERS HAVE CERTAIN RIGHTS TO DIVIDEND AND VOTING TO REPLACE BIARD NENBERS ETC WHEN THE NEED ARISE IN THE ORGANISATION.
Answer:
The numeric response for the question using real numbers rounded to one decimal place is given as below.
Explanation:
Tax incidence for almonds is (12 / (12 + 0.47)) = 0.96
for cotton (0.73 / (0.73 + 0.68)) = 0.52 and
for processing tomatoes is (0.64 / (0.64 + 0.26)) = 0.71
Answer:
<u>Share of this stock worth today if the required rate of return is 7.6 percent is $3.59</u>
Explanation:
stock worth today = 2/1.076 + 2/1.076^2
stock worth today = $ 3.59
Correct answer choices are :
A) They request a bank loan.
D) They agree to sell stocks.
E) They issue bonds.
Explanation:
Also, interest paid on bonds is a tax-deductible business investment for the organization. The problem is that interest payments generally are made on bonds even when no profits are earned. For this reason, a smaller corporation can sometimes raise much capital by issuing bonds.
