Answer:
Current market price (Po) = $50
Growth rate (g) = 7%
Dividend paid (Do) = $1
Required return (Ke) = ?
Po = Do<u>(1 + g)</u>
Ke - g
$50 = $1<u>( 1 + 0.07)</u>
ke - 0.07
$50 = <u> 1.07</u>
Ke - 0.07
$50(Ke - 0.07) = $1.07
50Ke - 3.5 = $1.07
50Ke = $1.07 + $3.5
50Ke = $4.57
Ke = 4.57/50
Ke = 0.0914 = 9.14%
Explanation:
The current market price of a stock equals current dividend paid, subject to growth rate, divided by the difference between required rate of return and growth rate. The current market price, growth rate and current dividend paid were provided in the question with the exception of the required return (Ke). Thus, the required return becomes the subject of the formula.
Answer:
The correct answer is housing.
Explanation:
A family spends 35 percent of its income on housing, 20 percent on travel-related expenses, 10 percent on utilities, 25 percent on health care, and 5 percent on miscellaneous items.
The item which has the largest share in the budget will be most responsive to change in the price. In other words, we can say that the item that has the largest share in the budget will be most price elastic.
This is because a change in the price of such a product will cause a significant impact on the consumer's budget.
Here, housing has the highest share i.e. 35% in the budget so it will be most price elastic.
Answer:
Confrontation
Explanation:
Confroning a person is better than talking in publoc due to lots of People listening
Answer and Explanation:
The computation of the yield to maturity is as follows;
Given that
PMT = Coupon rate = $1,000 × 6% ÷ 2 = $30
Future value = $1,000
Present value = $1,000
NPER = 15 × 2 = 30 years
Since the bond sells at par so the present value would be equivalent to the future value
Also the coupon rate is equivalent to the yield to maturity i.e. 6%
So this is neither a premium nor a discount bond as the coupon rate is equivalent to the yield to maturity
