Answer:
35 years
Explanation:
Data given in the question
Increase in dividend = 2%
Annual effective interest rate = 5%
So by considering the above information, the duration of the stock in years is
= 1 ÷ (Annual effective interest rate - increase in dividend)
= 1 ÷ (5% - 2%)
= 1 ÷ 3%
= 33.33
Now the duration of the stock in years is
= (1 + interest rate)^ 33.33
= (1 + 0.05)^33.33
= 1.05^33.33
= 34.999 years i.e 35 years
Answer:
The amount of cash received from the sale is $1,027,500
Explanation:
In this scenario we first have to know the number of bonds issued and then multiply it by the bond price which is given to us in the question.
The bonds have a total face value of 1,000,000 and one bond is issued at 102.75 which means that the face value of a single bond is 100.
Now in order to find the number of bonds issued we will divide the total face value by the face value of a single bond.
1,000,000/100=10,000.
10,000 bonds were issued at $ 102.75 now in order to calculate the total cash received we will multiply the number of bonds with the issue price.
10,000*102.75=1,027,500
The average cost tells a firm whether it can earn profits given the price market. The average cost will allow a firm to see what their cost of inventory is and compare it to similar goods within their inventory and on the market. This will also enable them to set a product price to be sold to a customer and make a profit.
The type of customers vital to a firm introducing a new innovation are the early adopters who are willing to pay higher prices and like to tinker with new products.
<h3>Who are early adopters</h3>
Early adopter are the people who first make use. of a new Innovation.
They are the risk takers and they use a new before any other person.
Therefore, The type of customers vital to a firm introducing a new innovation are the early adopters who are willing to pay higher prices and like to tinker with new products.
Learn more on early adopters here,
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A shortage is a term used to refer to the supply not being enough to accommodate the needs of all its users. This means that the gasoline supply may run out if not replenished and used properly. The shortage be eliminated by replenishing the supply or limiting the activities that would require the use of gasoline.