Answer:
HPR = holding period Return is 20%
Explanation:
- Given original Investment = $100
- Short sale proceeds for 1 share = $100
- Investment made of $100 + short sale proceeds of $100 at 5% YTM.
- So Maturity Value = Investment x (1+YTM)^number of years
- = 200 x (1 + 0.05)^1 = 210
- Therefore, In order to cover Short sale of 1 share, we will have to buy 1 share at a closing value of $90
- As such, holding period Return = (Investment proceeds from ZCB - Buying price of stock - Investment amount) / Investment Amount
- = (210 - 90 - 100) / 100 = 0.2 or 20%
- Hence, HPR = holding period Return is 20%
Explanation:
This is a complex issue that may reflect on the organizational culture of that company. As a leader, it is necessary to understand the situation and listen to both parties in order to find a favorable solution for the company and the employees. Since Marshall's work is important to the company, firing him at first may not be a favorable decision, what the leader can do is provide feedback to him about his interpersonal relationship at the company.
As an effective leader, it is necessary to constantly monitor the work and the relationship between employees, in which case it is necessary to understand the reason for Marshall's behavior and try to change the parameters and procedures that may be facilitating this behavior. It is necessary for him to understand that despite being an effective worker, the company is an integrated system that must be in perfect synchronicity for it to be successful in the market.
What the leader could do in this case then is to try to change the code of organizational ethics, seek training and psychological assistance for Marshall if necessary, talk to the workers who are part of the conflict to understand the situation in the best way, to seek a work redesign. , etc.
<u>A. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the grow rate.</u>
This is the false statement.
<u>Explanation</u>:
The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.
The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.
Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.
The three primary elements are INSTRUMENTALITY, VALENCE AND EXPECTANCY.
The expectancy theory of motivation states that, an individual is will behave in a certain manner as a result of the way in which he has been conditioned to select a specific behavior over other forms of behavior. This implies that workers are usually motivated by the reward they get for the work they performed.<span />
The answer is,
<span>To provide an overall review of the financial information and assessment of the adequacy of evidence gathered during the audit engagement
This choice will provide enough evidence as a financial information. The overall finance would give ll the needed dates of transactions.
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