Answer:
New price (P1) = $72.88
Explanation:
Given:
Risk-free rate of interest (Rf) = 5%
Expected rate of market return (Rm) = 17%
Old price (P0) = $64
Dividend (D) = $2
Beta (β) = 1.0
New price (P1) = ?
Computation of expected rate on return:
Expected rate on return (r) = Rf + β(Rm - Rf)
Expected rate on return (r) = 5% + 1.0(17% - 5%)
Expected rate on return (r) = 5% + 1.0(12%)
Expected rate on return (r) = 5% + 12%
Expected rate on return (r) = 17%
Computation:
Expected rate on return (r) = (D + P1 - P0) / P0
17% = ($2 + P1 - $64) / $64
0.17 = (2 + P1 - $64) / $64
10.88 = P1 - $62
New price (P1) = $72.88
Answer:
D) 4 billion British pounds
Explanation:
Trade balance or balance of trade can be defined as the difference between a country's export and import at a particular period of time.
It could be a deficit or surplus.
Deficit trade balance refers to when the export of a country is less than it's import. This means more products are imported that exported.
Surplus trade balance refers to when export of a country is more than the import.
Import is the bringing in of goods from a foreign country. This means a particular country purchase goods from another country.
Export is the sending out of goods to a foreign country. That is the selling of goods to another country.
Trade balance= Export- Import
=14 billion British pounds- 10 billion British pounds
=4 billion British pounds
The trade balance that occurs here is surplus trade balance where export is more than import.
Answer:
Accounting profit= $55,000
Explanation:
Giving the following information:
Last year, he earned $70000 in revenue. He had explicit costs of $15000.
<u>The accounting profit doesn't take into account the opportunity cost of other income options.</u>
Accounting profit= 70,000 - 15,000= $55,000
<span>This is a cashier's cheque. Cheque is an order to a bank to pay a particular amount from the account of an account holder. It is a printed matter. Cashier's cheque is a form of cheque which is guaranteed by the bank. It is drawn on the bank's account and signed by the cashier. It is done for real estate and brokerage transactions.</span>
