Answer:
The answer is "B"
False
Explanation:
At maturity the bond’s realized yield can not be equal to 7% because of the uncertain future interest rate.
Answer:
Yes it can be done from using cumulative percentage line on right y-axis
Explanation:
for smallest bar= lowest percentage on right y-axis × 200/100
for 2nd smallest bar= ( next consecutive percentage- smallest percentage) × 200/100
and so on
Answer:
$1.25
Explanation:
dividend growth:
year growth rate dividends
1 24% Div₁ = 1.24Div₀
2 24% Div₂ = 1.24²Div₀ = 1.5376Div₀
3 24% Div₃ = 1.24³Div₀ = 1.906624Div₀
4 14% Div₄ = 1.906624Div₀ x 1.14 = 2.17355136Div₀
indefinite 8% Div₅ = 2.17355136Div₀ x 1.08 = 2.347435Div₀
required rate of return = 10%
current stock price = $86
stock price for terminal growth rate = Div₅ / (10% - 8%) = Div₅ / 2% = 117.3717734Div₀
current stock price = $86 = 1.24Div₀/1.1 + 1.5376Div₀/1.1² + 1.906624Div₀/1.1³ + 2.17355136Div₀/1.1⁴ + 117.3717734Div₀/1.1⁴ = 1.12727Div₀ + 1.27074Div₀ + 1.43247Div₀ + 1.48456Div₀ + 80.1665Div₀ = 85.48154Div₀
$86 = 85.48154Div₀
Div₀ = $86 / 85.48154 = $1.006065
Div₁ = 1.24 x $1.006065 = $1.2475 ≈ $1.25
Answer:
4
Explanation:
4 probability = value of function,. F(3) = P(Y < 3) = 5/12 x. 0. 1. 2 ... The expected value or mean of random variable X is given by. µ = E(X) =.