Answer:
8,288
Explanation:
Mr. Slater should move 8,288 from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds
Answer:
P₀ = $59.45
Explanation:
the numbers are missing so I looked for a similar question:
- expected EPS = $2.775
- retain 0% of earnings (years 1 - 2)
- retain 48% of earnings (years 3 - 4)
- then retain 23%
- expected return on new projects = 22.4%
- Re = 10.7%
growth rate = retention rate x return on new projects
g₁ = not given EPS₁ = $2.775
g₂ = 1 x 22.4% = 22.4% EPS₂ = $3.3966
g₃ = 1 x 22.4% = 22.4% EPS₃ = $4.1574
g₄ = 0.48 x 22.4% = 10.752% EPS₄ = $4.6044
g₅ = 0.48 x 22.4% = 10.752% EPS₅ = $5.0995
g₆ = 0.23 x 22.4% = 5.152% EPS₆ = $5.3622
dividend payout ratio expected dividend
year 1 = 0 $0
year 2 = 0 $0
year 3 = 0.52 $2.1618
year 4 = 0.52 $2.3943
year 5 = 0.77 $3.9266
year 6 = 0.77 $4.1289
since the growth rate became constant at year 6, we can find the terminal value for year 5:
terminal value year 5 = $4.1289 / (10.7 - 5.152%) = $74.4214
P₀ = $0/1.07 + $0/1.07² + $2.1618/1.07³ + $2.3943/1.07⁴ + $3.9266/1.07⁵ + $74.4214/1.07⁵ = $0 + $0 + $1.7647 + $1.8266 + $2.7996 + $53.0614 = $59.45
Answer:
With respect to gift giving and gift receiving, <u>a bribe</u> refers to money paid before an exchange.
Explanation:
A gift is something given to another person to show affection. In response to giving the gift, the person doesn't have any expectations.
In the business world, a gift becomes a bribe when it is given for any political or business favours. Hence, it is unethical to share gifts for this purpose in the business.
A bribe is usually given before asking for a favour. Bribe is seen as a major cause of corruption and is illegal under the law of almost every country in the world.
Answer:
Monthly Payment is $1602.37
Effective interest rate is 5.33%
Explanation:
a.
The monthly payment made includes the interest and principal payment as well.
Monthly payment can be calculated using following formula
Monthly Payment = [Present value of loan x r] / [{1 - (1 + r)-n}]
Monthly Payment = [$84,500 x (0.052/12)] / [1 - (1 + 0.052/12)-60]
Monthly Payment = [$366.17 / 0.2285]
Monthly Payment = $1,602.37
b.
The Effective interest rate is the actual interest rate that are being charged on loan after incorporating the compounding effect.
Use following formula to calculate the effective Annual rate
EAR = [1 + (i/n)]^n - 1
EAR = [ 1 + (5.2% / 12]^12 - 1
EAR = [1.0043]^12 - 1
EAR = 1.0533 - 1
EAR = 0.0533
EAR = 5.33%