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grigory [225]
3 years ago
6

Dr. Sato makes a fully leveraged purchase on a share of stock today at time t = 0. You are given: The time t = 0 price of a shar

e of the stock is 50. The stock pays a discrete dividend of 1.50 in six months. The continuously compounded annual risk-free interest rate is 2%. The broker's commission is 0.2% on each and every transaction. Continuously compounded interest should be used in all computations for this problem.
Business
1 answer:
sergij07 [2.7K]3 years ago
8 0

Answer:

FV = 51

Explanation:

Base on the scenario been described in the question, we can use compound interest to compute the give problem

The formula for compound interest is given as follows

FV = PV x e (i x t),

We are given the following values

PV= 50

t = 0

I = 2%

Substituting the values into the equation

FV = 50 *exponential 0.2*0

FV = 51

As our answer.

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Before supplier relationship management (SRM), buyers typically spent 40% of their time on expediting orders. After SRM implemen
Semmy [17]

Answer: c. 10% of their time on expediting orders

Explanation:

Supplier relationship management is an approach to evaluate or assess supplier's contributions to businesses with the aim of improving the business and grow relationship between both parties. The supplier relationship management has helped buyers spend just 10% of their time on expecting orders.

7 0
3 years ago
To examine the effect of hunger on taste sensitivity, groups of research participants are deprived of food for differing lengths
Alex787 [66]

Answer:

B. An EXPERIMENT

Explanation:

The research : trying to study 'Effect of Hunger on Taste Sensitivity'  is an Experiment based research - based on its special treatment (i.e depriving food for time intervals) on research participants in a controlled environment .

Although it tries to study relationship (correlation) between variables : Hunger & Taste Sensitivity , it doesn't do so without any control on either variable . Naturalistic Observation subject is also observed without any manipulation . So , it doesn't qualify to be either Naturalistic or Correlational Research . Survey Research includes getting participants responses through questionnaire , so it doesnt fit to this category as well .

6 0
3 years ago
The WeKnowThisStuff Company issued a $1,000 par value, 6% coupon, 8 year bond. The interest is paid semiannually and the market
Stella [2.4K]

Answer:

$1,032.01

Explanation:

Given:

Face value of bond (FV) = $1,000

Coupon rate = 6% annual rate or 6% / 2 = 3% semi-annual rate

Coupon payment (pmt) = 0.03 × $1,000

                            = $30

Rate = 5.5% annually or 5.5 / 2 = 2.75%

Time period (nper) = 8 × 2 = 16 periods

Current value of bond is present value of bond which can be computed using spreadsheet function =PV(rate,nper,pmt,FV)

So, present value of bond is $1,032.01.

PV is negative as it's cash outflow.

8 0
3 years ago
All the different management fees and fund's operating costs are often referred to as a(n):
neonofarm [45]
The answer to this question is letter B. expense ratio.
All the different management fees and fund's operating costs are often referred to as <span>expense ratio.</span>
 >The expense ratio is the annual fee that all funds  charge their shareholders. It expresses the percentage of assets deduced each fiscal year for fund expenses, including 12b-1 fees, management fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund.
4 0
4 years ago
If you pay​ $2,000 in taxes on an income of​ $20,000, and a tax of​ $3,000 on an income of​ $30,000, then, over this range of in
Lemur [1.5K]
The income tax for 20,000 is 2,000 right?
So to how much percent is 2000 of 20000 you have to divide the number and multiply by 100.
So 2000/20000 is 0.1 right?
Multiply 0.1 worth 100 to get 10% tax.
We can check with the 3000 and 30000 also
7 0
3 years ago
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