Answer: An investment that matures in five years
Explanation:
Both investments may be of equal risks, but by virtue of having different maturity dates, they will not be priced the same.
This is because the discount rate (opportunity cost) will discount the maturity value more the longer the investment is such that the present value is lower.
4 year investment
= 1,000 / (1.068)^4
= $768.63
5 year investment
= 1,000 / (1.068)^5
= $719.69
The 5 year investment will have a lower present value and will be charged lower.
The project must demonstrate,
one, the problem you are trying to solve. Two, the solution of the problem, how
innovative it is and compelling. Three, what did you learn throughout the
project. Four, accuracy of the conclusion of the project. And lastly, how were
you able to effectively present and demonstrate the project to your audience.
Answer:
the exercise value of the option is $5.50
Explanation:
The computation of the exercise value of the option is given below:
= Sale value of the stock - exercise price of the option
= $23 - $17.50
= $5.50
Hence, the exercise value of the option is $5.50
Simply we deduct the exercise price of the option from the sale value of the option
And, the same should be considered
Answer:
20.19%
Explanation:
The computation of the sustainable growth rate is shown below:
The Sustainable growth rate is
= (return on equity × b) ÷ (1 - (Return on equity × b))
= (0.21 × (1 - 0.20) ÷ (1 - (0.21 × (1 - 0.20)))
= 0.168 ÷ (1 - 0.168)
= 0.168 ÷ 0.832
= 20.19%
basically we applied the above formula to determine the sustainable growth rate
Answer:
True
Explanation:
The Security Exchange Act Rule 10b-5 says that the insider dealing is not allowed because it waives off the trust of the shareholders placed on the corporations. This means if their agents are not trustworthy then nobody is going to invest in the companies which means the corporations that are fulfilling needs of more than 50% of the world would have no existence in future because their is no one who is going to lend them money. So the act says that this insider dealing which enables the employees or directors of the company to gain undue advantage due to their access to management information is not allowed and is unethical stance of the agents.
