Answer:
The correct solution is "$6,564.01". A further solution is given below.
Explanation:
The given values are:
beta,
= 1.6
market return,
= 15%
cash flow,
= $2,000
risk free rate of interest,
= 3%
Now,
The stock return will be:
= 
= 
= 
The actual worth of the firm will be:
= 
= 
= 
= 
With 0.8 beta, the stock return will be:
= 
= 
= 
So that I'm paying for the firm,
= 
= 
= 
($)
Hence,
I'm paying,
= 
= 
($)
Answer:
Stock prices follow a random walk with a trend because:__________
d. stock prices are based on both future profits and expectations about future profits and gradually rise over time.
Explanation:
The random walk theory of the stock price movement states that there is no observable pattern or trend to the movement of a stock price. It is, therefore, impossible to use the past movement or trend of a stock price to predict its future movement. This means that the wise investor should invest in the market portfolio to reflect more closely the movement of stock prices in the market instead of investing in a single stock or market security.
Answer:
Saving Account, US treasury Bond, google stock, Picasso Painting, House
Explanation:
Give me brainly answer.
Answer:
This is the sample answer
Explanation:
After a natural disaster, such as a major hurricane, there is increased demand for gasoline, lumber, bottled water, clothing, and other essential goods as people try to replace and rebuild what was lost. At the same time, the supply of these goods likely decreases because of disruptions to factories and transportation. Under normal market conditions, producers would raise their prices at the first sign of trouble, both to offset their own losses from the disaster and to obtain optimal profits.
However, people who have lost everything need to start rebuilding as soon as possible at a price they can afford to pay. The sooner the community is rebuilt and back to normal, the sooner the local economy will return to normal for both consumers and producers. For this reason, I think the government should introduce price ceilings on essential goods during a disaster. Many people would not be able to buy the goods they need without price ceilings. Although producers lose out on maximizing their profits, their actual losses are limited because they are allowed to raise prices to cover production and transportation costs driven up by the disaster.
Because citizens benefit so greatly from them, I think emergency price ceilings are beneficial to the economy as long as producers do not suffer significant losses from them.
Answer:
b. Japanese firms will have little interest in Mr. Abercrombie’s specialty because these skills are already practiced at a high level.
Explanation:
Japanese firms already have great expertise in efficient decision making process and they developed the six sigma method used by companies like Toyota to achieve high quality product and a productive work force.
James Abercrombie specializes in training boards of directors in decision-making skills and had striking success in reducing conflict and hostility among directors and allowing boards to develop more cohesiveness.
Japan will have little need for this because they are already specialised in this field.
