Answer:
$3.72
Explanation:
Francis incorporation stock has a required rate of return of 10.25%
The stock is sold at $87.50 per share
The growth rate is 6% per year
Therefore, the expected dividend can be calculated as follows
= Po(rs-g)
= $87.50(10.25%-6%)
= $87.50×4.25
= $3.72
Hence the expected year end dividend is $3.72
Answer:
c. 252
Explanation:
Calculation of what the next year's CPI will equal
Using this formula
Next year's CPI=[Consumer price index (CPI) +(Consumer price index (CPI) *Inflation rate
Let plug in the formula
Next year's CPI=[240+(240*5%)]
Next year's CPI=240+12
Next year's CPI=252.
Therefore the next year's CPI will equal 252
Answer:
B
Explanation:
Inflation is a persistent rise in general price level.
When inflation is expected, Investors ask for an increase in nominal interest rate in order to maintain the value of investments.
When a security becomes more risky, the chances of default of the security increases, so investors ask for an higher total return in order to compensate for the increased risk of default.
Risk premium increases with the increase in risk of a security
Investors are less willing to hold the bond because there is the risk that the security won't be able to make the contractual payments
Answer:
The total cost of direct material purchases for October is $6,788
Explanation:
For computing the total cost, first, we have to find the production cost which is shown below:
= October units + November or ending units × percentage given - October or beginning units × percentage given
= 4,500 units + 4,750 units × 10% - 4,500 units × 10 units
= 4,500 units + 475 units - 450 units
= 4,525 units
Now the total cost of material would be
= Production units × number of ounces × price per ounces
= 4,525 units × 3 ounces × $0.50
= $6,788
Answer:
at 11%. (Present value of annuity) An=$30,876.74
at 16% (Present value of annuity) An=$26,061.55
Explanation:
Given R=6000, each year
t = 8 yrs
j(1) = 11%,
j(2)=16%
m= 1
find An=?
We have i=j/m and n=m x t
Formula An={R[1-(1+i)^-n]} / i
={6000x[1-(1+0.11)^-8]} : 0.11
=$30,876.74
An={R[1-(1+i)^-n]} / i
={6000x[1-(1+0.16)^-8]} : 0.16
=$26,061.55
