Answer:
The price you should be willing to pay for this stock= $24.86
Explanation:
To estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type . Therefore 50= xX1.15^5 by solving this equation we have x= 24.86 . The price you should be willing to pay for this stock= $24.86
Answer:
current intrinsic value per stock = $26.35
Explanation:
year dividend EPS
0 0 $18
1 0 $20.88
2 0 $24.22
3 0 $28.10
4 0 $32.59
5 0 $37.81
6 $12.59 $41.97
growth rate up to year 5 = 16%
ROE growth rate starting year 6 = 11%
dividend growth rate starting year 6 = 11% x (1 - 30%) = 7.7%
cost of equity = 24%
horizon value at year 5 = $12.59 / (24% - 7.7%) = $77.24
current intrinsic value per stock = $77.24 / 1.24%⁵ = $26.35
Answer:
Teaching strategies to reduce complications of existing diagnoses
Explanation:
Teaching strategies to reduce complications of existing diagnoses.
Health Promotion activities focus on preventing disease from developing that is primary prevention. And then screening to identify at early curable stage and this known as secondary prevention and reducing complications of existing or established medical diagnosis, which is the tertiary prevention.
Answer:
annuity
Explanation:
Retirement annuities are helpful because they can guarantee a steady income during your retirement years. They can be either fixed retirement annuities (they provide a fix amount of money until you die) or variable annuities where the amount of money depends on how well your investments perform.
Answer:
The portfolio return is 12.6% and the portfolio SD is 15.4%. Thus, option a is the correct answer.
Explanation:
The expected return of a portfolio is the weighted average of the individual stock returns that form up the portfolio. Thus, the expected return for a two stock portfolio is,
Return of Portfolio = wA * rA + wB * rB
Where,
- w represents the weight of each stock in the portfolio
- r represents the return of each stock
Portfolio return = 0.7 * 0.15 + 0.3 * 0.07 = 0.126 or 12.6%
The standard deviation of a two stock portfolio containing one risky and one risk free asset is the weight of risky asset in the portfolio multiplied by the standard deviation of the risky asset. The risk free asset has zero standard deviation.
Standard deviation of such a portfolio is,
Portfolio SD = w of risky asset * SD of risky asset
Portfolio SD = 0.7 * 0.22
Portfolio SD = 0.154 or 15.4%
