Answer:
$6.87
Explanation:
The Dividend will grow first with non-constant growth rate and then after 3 years it will grow at a constant rate of 2%.
Last Dividend Paid = $6.18
In the first year the Growth rate is 3%
First Year Dividend = $6.18 ( 1 + 3% ) = $6.18 ( 1 + 0.03 ) = $6.18 ( 1.03 ) = $6.3654
In the Second year the Growth rate is 8%
Second Year Dividend = $6.3654 x ( 1 + 8% ) = $6.3654 x ( 1 + 0.08 ) = $6.3654 x ( 1.08 ) = $6.87
Answer:
Suppose there is an individual who needs a certain level of income, I°, in order to stay alive. An increase in income above that level of income I° will have a diminishing marginal utility. Below I°, the individual will be a risk lover and will take unfair gambles and risks in an effort to make large gains in income. Above I°, the individual will purchase insurance against losses.
Answer:
Option "B" is the correct answer to the following statement.
Explanation:
Given:
Exchange rate of 1 Baht= $0.022
Expected inflation in united states (Assume) = 3% = 0.03
Expected inflation in Thailand (Assume) = 10% = 0.10
Computation:
After 1 year rate of 1 Baht in Dollar
The price in US = 1 × (1+0.03) = $1.03
The price in Thailand = 1 × (1+0.10) = 1.10 baht
1 baht = 1.03×0.022÷1.1 = $0.0206
Therefore, 1 baht = $0.21 (approx)
Answer:
None of the above
Explanation:
A sensitivity analysis measures how under a certain set of assumptions, different values of an independent variable influence the dependent variable. It is also known as what if analysis and it is based on various assumptions. Options given in the question like changes in depreciation tax shield over a project's life, changes in production levels with the changes in revenue etc. are absolutely certain to an extent, or in other words, bound to happen.
Answer:
$9,249 for three months, $18,498 for six months.
Explanation:
Experts recommend that an emergency fund should include 3 to 6 months of cash to provide for living expenses.
The Potinsky household spends $37,000 annually, therefore, it spends $3,083 monthly ($37,000 / 12).
For a three-month emergency fund = $3,083 x 3
= $9,249
For a six-month emergency fund = $3,083 x 6
= $18,498
