Answer:
r = 0.1560652001 or 15.60652001% rounded off to 15.61%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period
- r is the required rate of return
or market rate of return
Plugging in the values for P0, D1, and g, we can calculate the value of r or market rate of return on the stock to be,
37.73 = 3.70 / (r - 0.058)
37.73 * (r - 0.058) = 3.7
37.73r - 2.18834 = 3.7
37.73r = 3.7 + 2.18834
r = 5.88834 / 37.73
r = 0.1560652001 or 15.60652001% rounded off to 15.61%
Answer:
D. how much the person has borrowed compared to how much he or she earns
Explanation:
A person's debt-to-income ratio, abbreviated as DTI, is a measure of a person's monthly debt obligation against their monthly gross income. It shows the fraction or percentage of gross income that is committed to debt repayments. Lenders use the debt-to-income ratio to assess a borrower's ability to repay future loans.
Calculating the debt-to-income ratio requires one to add up all their existing loan repayments and divide that figure with their gross income. Lenders insist on a ration that does not exceed 36% as per the 28/36 rule.
Answer:
The opportunity costs may be too high, and the motel may not yield high enough returns to offset them.
Opportunity costs is the money you do not earn for choosing one alternative investment or action over another. In this case, the cost of the land is probably very high and the motel (or any other business) might not be making as much money from their regular operations as they could from selling the land and using that money for another investment.
A business will shut down when their economic costs exceed their revenue.
Answer:
what are the options i would say your background recorded.
Explanation:
