Answer:
The stock is overrated because his intrincis value, 78.54 is below his market price 99.25
This means it is preferable to sale the share before their value drops.
Explanation:
Intrinsic Value 78.54
Market Value 99.25
The investor will show a capital loss of $155.
We gather the following information from this question:
Pop of the fund three years ago : $12
NAV of the fund three years ago : $11.50
Current Pop : $11
Current NAV : $10.45
Number of shares : 100 shares.
We need to calculate capital loss or gain on the 100 shares in the mutual fund.
While taking the cost per unit, <u>we need to consider the public-offer-price (pop) into consideration, since an investor can only buy the shares at pop</u>.
Similarly, while selling the shares, the <u>shareholder can liquidate his position by selling back to the mutual fund at the NAV prevailing at the end of the business day</u> on which he wants to sell.
So, the formula to calculate capital gain or loss is:
Explanation:
Primary market for securities is one that provides access to buy new new issues of stocks and bonds of a company. A good example of primary market is an Initial Public Offering (IPO), organized by a company that wants to sell it's shares for the first time to investors.
While Secondary market, are places to sell securities to a secondary (second) buyer from the current security owner who bought from the primary market.
The primary market is dependent on the secondary market since it is the demand from the secondary market that determines the asset valuation of the primary market.
Biologists collected a random sample of 850 fish and 25 of them had been previously tagged. 850 : 25 = 34. It means that about 1/34 of all the fishes in the lake had been tagged. Therefore 600 * 34 = 20,400.
Answer: Based on this experiment, in the lake lives 20,400 fishes.
In the components of a business plan, the section which contains a detailed description of the company, the problem/opportunity, proposed solution to be offered, and your competitive advantage is "Financial Projections section"
<h3>
What is Financial Projections?</h3>
Financial predictions forecast your company's future revenues and expenses using existing and estimated financial data.
They frequently contain many scenarios so you may see how adjustments to one part of your finances (for example, increased sales or reduced operational expenses) may affect your profitability.
Financial predictions are an important tool for business planning for a variety of reasons.
- Financial predictions assist you in setting your beginning budget, determine when you may anticipate the business to be become profitable, or set benchmarks for meeting financial goals if you're starting a business.
- If you currently have a firm, making annual financial projections can assist you in setting goals and keep on target.
- Both startups and current firms will require financial estimates when seeking outside finance to convince investors and lenders of the business's development potential.
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