The increase in stock risk has lowered its value by 16.09%.
<h3>What does market price mean?</h3>
- The price at which a good or service can currently be bought or sold is known as the market price.
- The forces of supply and demand determine the market price of a good or service; the price at which the quantity supplied and demanded are equal is the market price.
<h3>What is current price and market price?</h3>
- Market value is another name for the current price. It is the last traded price for a share of stock or any other security.
According to the question:
- If the security's correlation coefficient with the market portfolio doubles (with all other variables such as variances unchanged), then beta, and therefore the risk premium, will also double. The current risk premium is: 13% - 5% = 8%
The new risk premium would be 16%, and the new discount rate for the security would be: 16% + 5% = 21%
If the stock pays a constant perpetual dividend, then we know from the original data that the dividend (D) must satisfy the equation for the present value of a perpetuity:
Price = Dividend/Discount rate.
26 = D/0.13.
D =26 x 0.13.
D = $3.38.
At the new discount rate of 21%, the stock would be worth:
$3.38/0.21.
= $16.09.
The increase in stock risk has lowered its value by 16.09%.
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Answer:
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I think would be most susceptible to have mumps is the Patty. <span>
</span><span>If we review the conditions: Tina had mumps vaccine; her mother had mumps before; baby sister was breastfed, which is not a protection for mumps, and Patty wasn't vaccinated but was the one who had contact with the person who has mumps. Patty was the most vulnerable.</span>
<span>The main reasons for mumps are through situations where saliva was able to be passed. </span><span> Such situations were sneezing, coughing, food sharing, plate use, kissing, and touching the nose or mouth of people with mumps.</span>
Answer:
Consider the following explanation
Explanation:
Option A, B and D are correct, It will reduce the profit of the company who is loosing the monopoly, and fewer drugs will be invented in the market and firms are loosing the monopoly, and the sunk cost will increase.
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Explanation: