Taxed market forces are destroying the industries
Answer:
a. 10.04%
b. $82.78
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5% + 0.72 × (12% - 5%)
= 5% + 0.72 × 7%
= 5% + 5.04%
= 10.04%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
b. Now the intrinsic value would be
= Expected dividend ÷ (Required rate of return - growth rate)
= $5 ÷ (10.04% - 4%)
= $5 ÷ 6.04%
= $82.78
Jorge should provide feedback from all around the employee.
The major factor that contributes to the decline of occupations in industries such as textile and clothing is due to the change of technology. Through the technological advancement, innovators are able to machines that work twice as fast as human beings.
The annual dividend on the preferred stock is $1000 in total.
<h3><u>
What is an Annual dividend?</u></h3>
- An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
- A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
- The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.
Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.
The company has 2000 shares of 5% that is: (2000*5)/100 = 100
with a par value of $10, which becomes:
100*$10 = $1000.
Know more about Annual Dividend with the help of the given link:
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