A shift from one key to another within the same composition is called modulation. It is the act of changing from one tonal center to another. This process can be accompanied with a change in the key signature. There are four type of modulation namely Direct/phrase modulation, pump-up modulation, Truck-driver modulation and Pivot-chord modulation.
Answer:
$61.29
Explanation:
Calculation for what Storico Co. Share of stock will sell today.
Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.
Therefore the price in Year 3 will be calculated as :
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:
Hence,
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29
Answer:
The answer is letter A. Earning normal profits because their returns on investment are equal to the opportunity costs of the time invested.
Explanation:
Because all resources are being used efficiently and there is no need to use them elsewhere.
Willy should buy(a) no insurance since the cost per dollar of insurance exceeds the probability of a flood
Explanation:
Willy's only source of wealth is his chocolate factory. He has the utility function p(cf)1/2 + (1 − p)(cnf)1/2,, where p is the probability of a flood, 1 - p is the probability of no flood, and cf and in are his wealth contingent on a flood and on no flood, respectively. <u>The probability of a flood is p = 1/6. </u>The value of Willy's factory is $500,000 if there is no flood and $0 if there is a flood. Willy can buy insurance where if he buys $x worth of insurance, he must pay the insurance company $2x/17 whether there is a flood or not but he gets back $x from the company if there is a flood. Willy should buy
The answer for the above statement is option ( A.) no insurance since the cost per dollar of insurance exceeds the probability of a flood .
It is because the probability of flood as given in the question is only 1/6, whereas the chances of no flood are 5/6. So that means that he should not buy the insurance because the probability of the flood is comparatively less than the amount Willy has to pay to the insurance company and the amount paid back to willy by the insurance company is $ x worth of insurance
