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3 years ago

#7. Which is the most likely scenario in which someone would take out a short-term loan with a bank?

1 answer:

6 0

Since it is a short term loan, it wouldn't be a second home or a car, because those are paid for over the course of YEARS.
A skateboard is usually ~100$ and doesn't need a loan.

Your answer is C) To pay for credit card debt

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A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra

Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

$Ke= r_f + \beta (r_m-r_f)$

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

$Ke= 0.085 + 1.3 (0.045)$

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

$\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value$

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

$\frac{Principal}{(1 + rate)^{time} } = PV$

$\frac{3.444}{(1 + 0.1435)^{1} } = PV$

3.011805859

$\frac{4.23612}{(1 + 0.1435)^{2} } = PV$

3.239633762

$\frac{61.6686857}{(1 + 0.1435)^{2}} = PV$

47.16201531

We add them and get the value of the stock:

53.413455

5 0

3 years ago

When cisco systems inc. of san jose, california, and tata consultancy services of mumbai, india, entered into their __________,

ser-zykov [4K]

Strategic aliance is collaborative relationship between independent firms. Though this relationship the partnering firms do not invest in one another, which means <span>do not create an equity partnership</span>
<span>Example is when Cisco systems inc. of San Jose, California, and Tata consultancy services of Mumbai, India, entered into their strategic aliance. They both continued to develop market-ready infrastructure and network solutions for customers, but they relied on each other to provide the training and skills that one or the other might have lacked.</span>

3 0

4 years ago

Graphically, the full-employment, stable-inflation, rapid-growth economy of the last half of the 1990s is depicted by a?

Mamont248 [21]

Graphically, the full-employment, stable-inflation, rapid-growth economy of the last half of the 1990s is depicted by a rightward shift of the aggregate demand curve along a fixed aggregate supply curve.

An economy is a place of manufacturing, distribution, and change, as well as consumption of goods and services. In preferred, it's miles described as a social domain that emphasizes the practices, discourses, and cloth expressions related to the production, use, and management of scarce assets.

An economy is the massive set of inter-associated production and consumption sports that are useful resources in determining how scarce sources are allotted. In a financial system, the manufacturing and intake of products and services are used to fulfill the wishes of these living and working within it.

The economy is defined because of the management of monetary topics for a community, business, or circle of relatives. An instance of an economic system is the stock market device within the US.

Learn more about economy here brainly.com/question/1106682

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7 0

2 years ago

A citizen of the United States A. feels no obligation to do community service. B. gets no preparation for community service in s

Harrizon [31]

Has both a private life and a public life

4 0

3 years ago

Memphis Company's May sales budget calls for sales of $870,000. The store expects to begin May with $47,000 of inventory and to

grigory [225]

Answer:

The budgeted cost of merchandise purchases is $527,000

Explanation:

The cost of merchandise purchases for May can be computed by first of all calculating the costs of goods sold,then by deducting closing inventory from costs of good sold and adding opening inventory,just like working backwards.

Sales $870,000

less margin($870,000*40%) ($348,000)

Cost of goods sold $522,000

Cost of goods sold =opening stock+purchases-closing stock

purchases=costs of goods sold+closing stock-opening stock

closing stock is $52000

opening stock is $47000

purchases =$522000+$52000-$47000

purchases= $527,000

6 0

3 years ago

Read 2 more answers