Answer:
$24.60
Explanation:
The computation of the price for 4 years from now is shown below:
Price = Dividend ÷(Required rate of return - growth rate)
where,
Dividend is
= Dividend × (1 + growth rate)^number of years
= $2.34 × (1 + 0.01)^5
= $2.46
All the other items would remain the same
So, the price is
= $2.46 ÷ (11% - 1%)
= $24.60
Answer:
The opportunity cost of that decision is - $250,000
Explanation:
For computing the opportunity cost, we have to use the formula of opportunity cost which is shown below:
= Return of project which is not chosen - the return of a chosen project
= $750,000 - $1,000,000
= - $250,000
Since in the question, it is given that the chosen project is X so we write the project X amount in the formula and the not chosen project of-course is Y.
Hence, the opportunity cost of that decision is - $250,000
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Answer:
Crowdsourcing
Explanation:
Crowdsourcing can be defined as a practice that involves utilizing a group of individuals for the sole purpose of obtaining new ideas.
Crowdsourcing can provide businessess with entry to new and fresh ideas and solutions, in-depth consumer experience, enhancement of different tasks, and a great reduction in the level of costs.
Individuals that take part in crowdsourcing work as paid freelancers.
Crowdsourcing enables various organizations to carry out tasks at a faster rate by splitting up the task. Crowdsourcing provides a more efficient way to perform tasks.
Answer:
E. Implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy and hold strategy.
Explanation:
Efficient market hypothesis (EMH), is a hypothesis that states that share prices reflect all information and consistent alpha generation is impossible. This term is alternatively known as the efficient market theory.
According to the EMH, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices. Therefore, it should be impossible to outperform the overall market through expert stock selection or market timing, and the only way an investor can obtain higher returns is by purchasing riskier investments.