Being a police officer is dangerous in todays society
Answer:
The present value of the deferred annuity payments that the company will pay to its CEO
Explanation:
This can be calculated using an appropriate discount rate. Suppose the discount rate is 10% and the present value of payment reciept in the year 6, 7, 8, 9 and 10 will be calculated using the following formula:
Present Value = Cash flow * 1/(1+r)^n
PV of Yr 6 payment = $2 million * 1/(1+10%)^6 = $2 million * 0.564= $1.13M
PV of Yr 7 payment = $2 million * 1/(1+10%)^7 = $2 million * 0.513= $1.03M
PV of Yr 8 payment = $2 million * 1/(1+10%)^8 = $2 million * 0.467= $0.933M
PV of Yr 9 payment = $2 million * 1/(1+10%)^9 = $2 million * 0.424= $0.848M
PV of Yr 10 payment= $2 million* 1/(1+10%)^10 = $2 million * 0.386= $0.771M
So the total liability = $1.13M + $1.03M + $0.933M + $0.848M + $0.771M = $4.652. So this is the liability on a discount rate 10% choosen.
Answer:
Its important to diversify because it can help an investor manage risk and reduce the volatility of an asset's price movements. If his high risk investment backfires hes left with almost nothing, diversifying can give him a safety blanket just incase. The many ways he can diversify include, but aren't limited to, Use asset allocation or target date funds, Invest in a mix of mutual funds or ETFs, Customize with individual stocks and bonds, Vary company size and type, Invest abroad, and add complexity.
Explanation:
Answer:
True. A stock's market price would equal it's intrinsic value if all the investors had all the information about the stock.
Explanation:
Intrinsic value is different from market value in the sense intrinsic value is derived by subtracting all assets from all liabilities of a company.
Intrinsic value is equal to market value +/- investor's sentiments
Market price of a share is usually derived by dividing total market capitalization by no of shares/stock outstanding. It refers to the value at which a company's stock is currently trading in the stock market.
As efficient market theory holds, investor decisions are affected by the information about a stock which gets circulated. This wipes out any arbitrage possibilities.
A stock's market price would equal it's intrinsic value if all investors had all the information that is available about the stock.
Thus, the given statement is true.
They will put themselves on social media for a way to get out there