Answer:
a. 7.71%
b. $57.57
Explanation:
a. The computation of discount rate is shown below:-
Discount rate = Risk free rate of return + Market Risk Premium × Beta
Here Common stock will have the same market risk as S&P 500 i.e Beta of Common Stock is 1
= 1.5% + 7.6 × 1
= 7.71%
b. The computation of stock price is shown below:-
Stock price = Expected Stock Value at year End ÷ (1+ Discount rate) + Expected Dividend ÷ (1 + Discount Rate)
= $60 ÷ (1 + 7.71%) + $2 ÷ (1 + 7.71%)
= $60 ÷ 1.0771 + 2 ÷ 1.0771
= $55.71 + $1.86
= $57.57
True. Good management can lead to the success of a business entity with the aid of a field research analyst and the viability of the functions of management. Having good management directly relates to having a smooth running operation. The management team makes sure their individual groups are operating how they should and working efficiently for the overall goals to be met.
Answer:
4% (exactly 4.4%)
Explanation:
A taxable bond is a debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond or tax-exempt bond should consider what s/he will have left in income after taxes are taken.
Step 1:
Find the reciprocal of your tax rate,
(1-22%) = 1-0.22 = 0.78
Step two:
Divide this into the yield on the tax-free bond to find out the tax-equivalent yield.
3.5/0.78 = 4.4 ~ 4%
<span>A corporate bond backed only by a company's promise to pay is called a debenture bond. There is no collateral offered and the parties are acting on faith and predictions in this transaction.</span>
Answer:
The answer is mainframes.
Explanation:
Mainframes tend to be used by corporations for various purposes, from bulk data processing to transaction processing. Its size tends to be bigger than other computer devices, and it has strong processing power compared to these devices, with some examples being minicomputers, servers, and personal computers.
