Answer:
cash = $10,000, property assets = $90,000, and stock shares = $100,000.
Explanation:
I think that the answers is c
How much ever percent she cuts so will the value of her sales
Answer:
15.68%
Explanation:
Now to get the expected return of the portfolio, we need to find the return of the portfolio in each state of the economy. This portfolio is a special case since all three assets have the same weight. To find the expected return in an equally weighted portfolio, we can sum the returns of each asset and the we divide it by the number of assets, so the expected return of the portfolio in each state of the economy will be :
Boom: RP= (.13 + .21 + .39) / 3 = .2433, or 24.33%
Bust: RP= (.15 + .05 −.06) / 3 = .0467, or 4.67%
Now to get the expected return of the portfolio, we multiply the return in each state of the economy by the probability of that state occurring, and then sum. In so doing, we get
E(RP) = .56(.2433) + .44(.0467)
=.1568, or 15.68%
Answer:
The value of the common stock today is $28.455 per share.
Explanation:
For a stock that is paying constant growth rate in dividends, we use the constant growth model of the DDM to calculate the value of stock today. The formula for price using the constant growth model is,
Price = D1 / r - g
Where,
- D1 is the dividend expected in the next period or D0 * (1+g)
- r is the cost of equity or required rate of return
- g is the growth rate in dividends
Price = 2.71 * ( 1 + 0.05 ) / (0.15 - 0.05)
Price = $28.455