Answer: $35.84
Explanation:
First year
10% compounded continuously is: 10.517%
$30 X 1.10517=$33.16, then take $2 for dividend and you get ($33.16-$2) $31.16 at the end of the 1st year.
Second year
10% compounded continuously is: 10.517%
$31.16 X 1.10517-2=$32.43 at the end of 2nd year.
(-2) is the dividend for the second year to be taken out.
Third year
10% compounded continuously is: 10.517%
$32.43 X 1.10517
=$35.84
Or:
The three year forward price is gotten by deducting the PV of the returns from the current price and then grossing up to get the returns for three years at the risk-free rate.
The present value of the income is 2e-0.1×1+2e-0.1×2= $3.447.
It is (30−3.447)e0.1×3 = $35.84
Answer:
Option B - Under a fixed exchange rate system, if a central bank conducts a monetary policy, then it puts pressure on the exchange rate and the central bank would have to offset that effect.
Explanation:
Central banks are required to initiate measures to keep the exchange rate fixed, such that any move by them which causes movement of exchange rate will have to be countered by themselves.
Hence, if a central bank administers a monetary policy under a fixed exchange rate system, it would exert pressure on the exchange rate and the central bank would have to counteract that effect.
Therefore, option B is the correct answer choice.
Answer:
C. Strategic plan
Explanation:
Strategic planning involves developing a business strategy, method of implementing the business strategy and finally evaluating the business strategy in order to see if it has achieve its goal. It is characterized by strategy formulation, implementation and evaluation. In this case, Kia is contributing to the strategic plan by allocating company's resources to meet the long term goals of the company and defining long term activities, that is, developing a business strategy.
Answer:
future savings
Explanation:
because at the end of the 5year saving she will be able get more interest on her saving
Answer:
The value of the stock is $36.53
Explanation:
To calculate the value of the stock, we'll use the formula
......(a)
where, P = price of stock
D1 = Estimated dividend for next period
r = required rate of return
g = growth rate
First we will calculate D1,
Do is the dividend whic the firm just paid = $4.30
D1 = Do(1+g)
D1 = 4.30(1+2.68)
D1 = $4.41
Substituting the values in the formula....(a)
P = 4.41 / (14.75% - 2.68%)
P = 4.41 / 12.07%
P = $36.53