Answer:
where are the options for these questions
Answer:
1. Which Statement is true:
B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.
2. Qualitative analysis:
According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.
Explanation:
Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share. It shows the value investors have over a stock. With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future. This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.
Without competition, Company A is riskier than Company B which operates efficiently and competitively. There is that competitive edge that competitive companies possess. Monopolies do not enjoy that advantage. It is, therefore, riskier to have no competition.
Based on the U.S. Treasury bond rate, the market return and the beta, Davcher's expected rate of return would be 6.5%.
<h3>What is the expected rate of return?</h3>
Using the Capital Asset Pricing Model (CAPM), the expected rate of return would be:
= Risk free rate + Beta x Market premium
Market premium:
= Market return - risk free rate
= 8% - 3% rate of treasury bonds
= 5%
Expected rate of return is:
= 3% + 0.70 x 5%
= 6.5%
Find out more on the Capital Asset Pricing Model at brainly.com/question/15851284.
Answer:
commodity are the goods and services sold to consumers
Answer:
option (c) $167,597.77
Explanation:
Data provided in the question:
Monthly mortgage payment = $900
Duration of loan, n = 30 years = 360 months
Interest rate = 5%
Monthly rate of interest = 5% ÷ 12 = 0.4167% = 0.004167
Now,
Mortgage loan can he afford
= Monthly mortgage payment × [ (1 - ((1 + r)ⁿ)⁻¹ ) ÷ r ]
= $900 × [ (1 - ((1 + 0.004167)³⁶⁰)⁻¹ ) ÷ 0.05 ]
= $167,597.77
Hence,
The answer is option (c) $167,597.77
