Based on the amounts that you are offered and their present values, the offer you should pick is Birr 10,000 in 12 years.
<h3>Which offer should you pick?</h3>
You should pick the offer with the highest present value.
Offer 1 present value:
= Birr 1,000
Offer 2 present value:
= 10,000 / (1 + 11%)²
= Birr 2,858
Offer 3 present value:
= 25,000 / (1 + 11%)³
= Birr 1,840
In conclusion, option 2 has the highest present value and so should be picked.
Find out more on present value calculations at brainly.com/question/27821989.
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Answer:
30.92%
Explanation:
You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM
<u>Dividend discount model;</u>
cost of equity; r = (D1/P0) +g
whereby, D1 = next year's dividend = 3.00
P0= current price = 13.65
g = dividend growth rate = 11% or 0.11 as a decimal
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r= 0.3298 or 32.98%
<u>Using CAPM;</u>
r = risk free + beta (Market risk premium)
r = 0.049 + (2.8 * 0.0856)
r = 0.049 + 0.2397
r = 0.2887 or 28.87%
Next, find the average of the two cost of equities;
=(32.98% + 28.87% )/2
= 30.92%
Answer:
$2.50
Explanation:
The Earnings Per Share of a company is determined by using the formula:
EPS= (Net Income of the Company - Dividend to Preferred Shareholders) ÷ Average Outstanding Shares of the Company
Since there is no dividend to preferred shareholders
EPS= Net Income of the Company - ÷ Average Outstanding Shares of the Company
=30000 ÷ 12000
=$2.50
An assurance means the knowledge and courtesy of employees and their ability to convey trust.
<h3>What is an
assurance?</h3>
This refers to the set of systematic activities that are intended to ensure that the objectives of a project are fit for purpose.
Hence, in evaluation of service quality, its means the knowledge and courtesy of employees and their ability to convey trust.
Therefore, the Option A is correct.
Read more about assurance
<em>brainly.com/question/13567395</em>
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Hi :)
Population is a group of organisms of one one species, living in the same area at the same time
Hope this helps!