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Answer: 5
Explanation:
The velocity of circulation is the average number of times that each dollar can be used for the purchase of goods and services in a year.
From the information given in the question, the velocity of circulation will be:
= Nominal GDP / Quantity of money
= $2000 / $400
= 5
Therefore, the velocity of circulation is 5.
Answer: synergy
Explanation: Synergy refers to the idea that the total value and output of two groups of individuals should surpass the total of that same individual components.
Synergy is really a concept most frequently used within mergers and acquisitions (M&A). Synergy is most often a driving factor underneath a merger, or the possible financial gain gained through the combination of businesses.
Stockholders will profit if, owing to the synergistic impact of the transaction, the post-merger stock price of a corporation rises. The projected savings gained through the merger can be linked to various factors such as higher revenues, shared expertise, and innovation, or reduced costs.
Answer:
70 days of accrued interest
Explanation:
The clean price of the bond is the market price of the bond without any accrued interests, while the dirty price includes accrued interests. In order to calculate the dirty price of the bond, we need to determine the time that passed between the last coupon payment and the settlement date:
when you use the regular way settlement, we consider a 360 day year, so every month has 30 days, and we must add 1 business day at the end:
30 days from January + 30 days from February + 9 days of March + 1 business day = 70 days
Answer:
The maximum that should be paid for the stock of the company today is $146.64
Explanation:
The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today under the constant growth model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the most recent dividend paid
D0 * (1+g) is the dividend expected to be paid next period
r is the required rate of return
g is the growth rate in dividends
As we don't have a D0 but instead are given a D1, the constant growth rate will be applied from year 2 and we will calculate the price of the stock at year 1 using the constant growth model and discount is back one year to calculate the price of the stock today.
P1 = D1 * (1+g) / r - g
P1 = 3.6 * (1+0.046) / (0.07 - 0.046)
P1 = $156.9
Price of the stock today is,
P0 = P1 / (1+r)
P0 = 156.9 / (1+0.07)
P0 = $146.635514 rounded off to $146.64
