Answer:
The IRR is 4.08%
Explanation:
In calculating the internal rate of return in excel,the cash outflow of $76.63 is shown in year 0 with a negative sign to indicate that it is the initial investment on the share, followed by dividends in received in later years shown as positive figures ,however in the fifth the dividend received and the cash received from disposing of the share were added together to show total cash inflow in the last year.
The computation of IRR is shown below
IRR for the share purchase
Years Cash flow
0 -76.63
1 1.37
2 1.55
3 1.66
4 1.74
5 86.61
IRR 4.08%
Find attached for detailed computation.
Answer:
It is said that the country imposes a tariff on the foreign produced goods due to this implementation of tariff the demand for the domestic goods is also high, as a result the exports demand rises. Due to this effect the real exchange rate rises from E1 to E2 and the equilibrium point increased from point one to another.
Answer:
$99.09
Explanation:
Calculation for What is Tricki's expected price when it begins trading ex-rights
Using this formula
Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]
Let plug in the formula
Expected price=$100-[($100-$90)÷(10+1)]
Expected price=$100-($10÷11)
Expected price=$100-$0.91
Expected price=$99.09
Therefore Tricki's expected price when it begins trading ex-rights will be $99.09