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4 years ago

Net exports might be a negative amount if Americans

Business

1 answer:

zhannawk [14.2K]4 years ago

6 0

Answer:

c. decrease their holdings of foreign currencies, lend to foreigners, or do a little of both.

Explanation:

The net exports of the American may account for the negative share of the American holdings if they continue to borrow for the foreign currencies and lend to foreigners and may disturb the balance of payments.

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A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra

Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

$Ke= 0.085 + 1.3 (0.045)$

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

$\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value$

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

$\frac{Principal}{(1 + rate)^{time} } = PV$

$\frac{3.444}{(1 + 0.1435)^{1} } = PV$

3.011805859

$\frac{4.23612}{(1 + 0.1435)^{2} } = PV$

3.239633762

$\frac{61.6686857}{(1 + 0.1435)^{2}} = PV$

47.16201531

We add them and get the value of the stock:

53.413455

5 0

3 years ago

Which of the following best describes why German firms were nationalized after World War II?

Akimi4 [234]

Answer:

<u>D. Happenstance.</u>

Explanation:

The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.

It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.

3 0

4 years ago

Which of the following prevents soil degradation?

jenyasd209 [6]

Answer:

1 crop rotation maintains soil fertility because crops use up different nutrients

8 0

3 years ago

Exchange of_____<br>resources, and/or_______

Hunter-Best [27]

Answer:

h djj h cool cat

Explanation:

7 0

3 years ago

XYZ can buy a Monet for $8,200,000 today. She believes that the masterpiece can be sold in 9 years for $19,600,000. What is the

myrzilka [38]

Answer:

c. 10.17%

Explanation:

we can use the future value formula:

future value = present value x (1 + r)ⁿ

future value = $19,600,000
present value = $8,200,000
n = 9

$19,600,000 = $8,200,000 x (1 + r)⁹

$19,600,000 / $8,200,000 = (1 + r)⁹

(1 + r)⁹ = 2.390243902

⁹√(1 + r)⁹ = ⁹√2.390243902⁹√

1 + r = 1.101663943

r = 1.101663943 - 1 = 0.101663943 = 10.17%

4 0

3 years ago