Answer:
6 percent.
Explanation:
To solve this question, we will take help of the Fisher equation,
Therefore,
(Spot rate/Forward rate) = (interest rate in US/Interest rate in Canada),
(1/1.2) = (0.05/x), Now solving for 'x'.
There fore,
x = (1.2 * 0.05) / 1
x = 0.06.
Hope this clear things up
Thankyou.
Answer:
The amount of interest paid is $ 1,500.
Explanation:
Given that Perry Mazza wants to borrow $ 30,000 from the bank, and the interest rate is 5% and the term is for 5 years, to determine what is the amount of interest paid, the following calculation must be performed:
(30,000 x 5) / 100 = X
150,000 / 100 = X
1,500 = X
Therefore, the amount of interest paid is $ 1,500.
Answer:
The intrinsic value of the stock is $21.52
Explanation:
To calculate the intrinsic value of the stock, we will use the constant growth model of the dividend discount model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price today under the constant growth model of DDM is,
P0 = D0 * (1+g) / r - g
Where,
- D0 * (1+g) is D1 or the next expected dividend
- r is the required rate of return
- g is the growth rate in dividends
First of all, we need to calculate the r or required rate of return using the CAPM equation,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.024 + 1.12 * (0.107 - 0.024)
r = 0.11696 or 11.696%
P0 = 2 * (1+0.022) / (0.11696 - 0.022)
P0 = $21.52
Answer:
TRUE
Explanation:
Yes, it is very much true that marketing ethics is concerned with distinguishing between right and wrong actions and decisions that arise in a business setting. According to broad and well-established moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce. In marketing ethics, companies try to work for the welfare and well-being of its customers as well, instead of not only focusing on the profits and sales. Community gets the benefit in larger extent when firms starts working for it by acting upon marketing ethics. Some people argue that marketing ethics is just a way to increase number of sales but in all cases, the larger community also get benefits from it.
