Answer:
$99.3625
Explanation:
The computation of ex-dividend stock price is shown below:-
Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)
= $105.64 - $7.75 × (1 - 19%)
= $105.64 - $7.75 × 0.81
= $105.64 - 6.2775
= $99.3625
Therefore for computing the ex-dividend stock price we simply applied the above formula.
Answer:
The answer is: C) PV of a perpetuity = StartFraction r Over Upper C EndFraction (I guess this means PV = r / C, which is FALSE)
Explanation:
The formula for calculating the present value of a perpetuity is:
PV = C / r
Where PV = Present Value, C = cash flow, r = discount rate.
A perpetuity is a stream of equal cash flows that lasts forever (perpetually).
The formula for calculating the present value of a perpetuity is simple, so there is no reason to spend time calculating the present value of each cash flow, since there are infinite cash flows.
A consol bond s a type of perpetuity issued by the British government (also by the US government)
Answer:
correct option is B. -$4.02
Explanation:
given data
delivery price = $40
current stock price = $35
fixed dividend yield = 8% = 0.08
risk free rate = 12% = 0.12
solution
as we know that forward contract is a agreement that is made between 2 parties ( seller or buyer ) asset in future at today fix price in specified time,
we get here long forward contract value that is express as
long forward contract =
...................1
put here value we get
long forward contract =
solve it we get
long forward contract = -$4.02
so correct option is B. -$4.02
Answer:
Leading/Leadership
Explanation:
Leadership inspires, influences and motivates people to work towards a goal and achieve it.