The answer is c. Israel won the West Bank in the 1967
War. As a result of this, many people
were taken out of their homes and became refugees. Israel then constructed many settlements for
Jews to live in. This move was
criticized as Illegal. To this day,
Israel still occupies the West Bank.
Answer:
Expected rate of return= 21.8
%
Explanation:
<em>The capital asset pricing model is a risk-based model for estimating the return on a stock.. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.
</em>
Under CAPM,
E(r)= Rf + β×(Rm-Rf)
E(r)- expected return- ?
Rf-risk-free rate- 5%
β= Beta - 1.4
(Rm-Rf)
- 12
E(r) = 5% + 1.4× (12%)= 21.8
%
Expected rate of return= 21.8
%
Answer: Required return = 15%
Explanation:
Current Price using the constant-growth DDM is;
Current Price = Expected dividend / ( Required return - growth rate)
This can therefore be used to calculate the required return.
Growth rate = Return on Equity * Retention ratio
= 15% * ( 1 - payout ratio )
= 15% * (1 - 40%)
= 15% * 60%
= 9%
Expected dividend = Earnings per share * Payout ratio
= 3 * 40%
= $1.20
Using the formula;
Current Price = Expected dividend / ( Required return - growth rate)
20 = 1.20 / (Required return - 9%)
20 * (Required return - 9%) = 1.20
Required return - 9% = 1.20 / 20
Required return = (1.20 / 20) + 9%
Required return = 15%
A financial plan is mostly influenced by priorities and goals. Hence, Option C is correct.
<h3>
What is a financial plan?</h3>
A plan, which is a kind of evaluation of an individual's current pay and future financial state. Evaluation, which is done by using current and future financial variables, is called financial plan.
And a financial plan is an estimation of the required capital. Prioritizing financial goals is also important when doing financial planning. It will help in aligning goals with plans.
Thus, a financial plan is mostly influenced by priorities and goals. Hence, Option C is correct.
Learn more about financial plan from here:
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