Answer:
13.5%
Explanation:
market rate of return can be calculated with below expresion
Current Price = D / (K - g)
Where
Current Price = $22 a share
D= Dividend in coming Year
dividend = $2.42
K= rate of return
g =growth rate
22 = 2.42 / (K - 0.025)
Cross multiply we have
22(K - 0.025)= 2.42
Open the bracket we have
22k- 0.55=2.42
2.42 + 0.55= 22k
K = 2.97 / 22
= 0.135
= 0.135×100%
= 13.5%
Therefore, the market rate of return if this stock is currently selling for $22 a share is 13.5
<span>D) A numerical rating that expresses how likely you are to repay your debts.</span>
Answer: American call
Explanation:
The price of the underlying stock is going to increase to at least $36 which is more than the exercise price on the option of $35. The option that would have more value therefore is a Call option because call options make profit when the exercise price is less than the market price.
The more valuable call option between the European and American call options is the American call option. This is because with an American call option, the holder is free to call in the option at any point in time up to the exercise date while a European option has to wait till the exercise date.
The American Call option is therefore the option with the most value today.
B. False
As the market value of a public trade bond that has a broad market with frequent trading is determined by multiplying no of bonds by the bond's market price.
Finance is a wide time period that describes sports associated with banking, leverage or debt, credit, capital markets, money, and investments. basically, finance represents cash control and the procedure of acquiring wished budget.
The bond market—frequently referred to as the debt marketplace, constant-profits market, or credit marketplace—is the collective call given to all trades and troubles of debt securities. Governments commonly difficulty bonds so that they will increase capital to pay down money owed or fund infrastructural upgrades.
Learn more about The bond market here
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