Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
The way each instrument be changed if the fed wished to decrease the money supply is the Fed should conduct :
- Open market sales
- Raise discount rates
- Raise interest paid on reserves.
This will attract more saving from the people.
Savings, scholarships and state aid are good preparations steps for one to take before applying for federal financial aid because They help one to
save enough money to be able to pay for college and also prevent serious debt after graduating.
Financial intelligence is a vital and indispensable virtue one must cultivate,just like the question stated, before going high as to seek federal aid,it is imperative to start from savings, scholarships and state aid because those can help you after graduating and not put you through serious debt after graduating.
If you must apply for federal aid,that implies that you have tried other better, easier means and all proved abortive and the only option that is left is the federal aid.
And while on federal aid,plans must be made on the means to pay back all sorts of financial issues so that once graduated,the financial burden will be minimal.
Answer:20% off is better and it is the only offer which is under the budget.
Explanation:Given,
The original cost of the dining set = $ 1,500,
If there is a off of 20%,
Then the discount on dinning table = 20% of 1500
= $ 300
So, the final amount of the dinning table after 20% off = 1500 - 300 = 1200 < 1250
Thus, it under the budget.
Now, in $ 200 rebate,
The new cost of the dinning table = 1500 - 200 = $ 1300 > 1250,
Thus, it is not under budget.
While, In $150 coupon,
The new cost of the dinning table = 1500 - 150 = $ 1350 > 1250,
Thus, it is not under budget.
