Icecream, the demand for icecream increases as the temprature becomes hotter but decreases as the temprature cools down
Answer:
Price will increase by $277.58
Explanation:
Market rate of Interest of a zero coupon bond can be determined by following formula
Market Rate of Interest = [ ( F / P )^(1/30) ] - 1
4.25% = [ ( $5000 / P )^(1/30) ] - 1
0.0425 + 1 = ( $5000 / P )^1/30
( 1.0425 )^30 = (( $5000 / P )^1/30)^30
3.4856 = $5000 / P
P = $5,000 / 3.4856
P = $1,434.46
Now Calculate the change in Price
Change in price = $1,434.46 - $1,156.88 = $277.58
Price will increase by $277.58
Companies with residual dividend policies priorities paying capital expenditures out of earnings.
<h3>What is payout ratio?</h3>
The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.
For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.
Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.
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The purchases discount account or discounts received account.
