I Think The answer is b I hope it will help you just Trying To help others
Answer: C
Explanation: The present value of a stock is the sum of all future cash flows discounted using a rate.
The future cash flows, in this case, is the proceeds from selling the stock ($100) and the dividend ($10).
We can calculate the current price of the stock using the formula:
($100 + $10) / (1 + 6%) = 103.77
Answer:
E. shareholders from the excesses and failed oversight of firms.
Explanation:
The Sarbanes-Oxley Act of 2002 was designed to protect investors and shareholders from accounting frauds, misguided financial statements and intentional errors by improving accuracy and reliability of company's accounts. This act was created in response to financial scandals and frauds that took place before 2002. Public corporations are required to comply with the Laws and regulations in the Sarbanes-Oxley Act.
Answer and Explanation:
The computation is shown below:
a. The expected value of payout arise from emergency is
= 0.01 × $67,500
= $675
b. The expected value of payout arise from capped coverage insuance is
= (0.9 × $500) + (0.09 × $2,500)
= $675
c. The risk averse shows the minimum exposure with respect to the swings of the income or there would be the loss in the income. Since the payout amount is same in both the cases so here we considered option B