Answer: Real estate
Explanation: Liquidity refers to the ability of a security to be converted into cash without having a major change in its price. In other words, liquidity is the relationship between the speed of sale of a security and its change in price.
Real estate refers to the land or other housing facilities etc. These assets require huge amount for purchase. It takes to find a buyer willing to make such a big investment, thus, they are not liquid.
Hence from the above we can conclude that the right option is C.
Do know how to follow instructions and work as a team
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Answer:
Angle Paid $6,000 for the share which has value of $50,000.
Explanation:
The value of the stock is calculated by dividing the dividend ( expected return) with Net Discount rate of Growth rate.
Expected Dividend = $400
Growth = 0% ( as dividend is expected to be same for indefinite period of time)
Discount rate = 8%
Price of the Bond = Dividend / ( Discount rate - Growth rate )
Price of the Bond = $4000 / ( 8% - 0% )
Price of the Bond = $4000 / 8%
Price of the Bond = $4000 / 0.08
Price of the Bond = $50,000
Angle Paid $6,000 for the share which has value of $50,000.
Answer:
I. Capital expenditures
III. Taxes
IV. Working capital requirements
Explanation:
Free cash flow = EBIT*(1 - tax rate) + depreciation - changes in net working capital - capital expenditure
