You have a $13,500 loan with a 7% interest rate and a term of 4 years what is the future value of the loan if the loan isnt paid
1 answer:
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Answer:
9%
Explanation:
Given:
The net income = $12,000
Total equity = $40,000
Total assets = $80,000
Dividend payout ratio = 40%
Now,
Internal rate of return, r =
or
Internal rate of return, r =
or
Internal rate of return, r = 15%
and,
Retention ratio = 1 - Dividend payout ratio
= 1 - 0.40
= 0.60 or 60%
Now,
Growth rate = Retention ratio × Internal rate of return
or
Growth rate = 0.60 × 0.15
or
Growth rate = 0.09
or
Growth rate = 9%
Answer:
The answer is $15,656
Explanation:
Formular: P = D *
P represent estimated stock price or value = ?
D represent last dividend paid = $152
k represent discount rate = 0.04
g represent growth rate = 0.03
Using the fomular above; P = $152 *
P = $152 *
P = $152 * 103 = $15,656
:. The fundamental value of the stock market would be $15,656