Answer:
a.
$27.27
b.
$75
Explanation:
Use the following formula to calculate the value of the stock
Value of Stock = Expected Dividend / ( Rate of return - Growth rate )
a.
Where
Expected Dividend = $3.00
Rate of return = 15%
Growth rate = 4.5%
Placing values in the formula
Value of Stock = $3.00 / ( 15% - 4% )
Value of Stock = $3 / 11%
Value of Stock = $27.27
b.
Where
Expected Dividend = $3.00
Rate of return = 8%
Growth rate = 4.5%
Placing values in the formula
Value of Stock = $3.00 / ( 8% - 4% )
Value of Stock = $3 / 4%
Value of Stock = $75
<span>The legacy "high-3" retirement system for the uniformed services requires service members to serve 20 years of active duty.
The high-3 require its receivers give 'defined contribution', which include that they must complete various type of services for at least 20 years.</span>
Answer:
Contrarian
Explanation:
In this case, Petulia is following the contrarian investment style. Those who follow this style, invest contrary to prevailing market trends (hence the name), by buying when other are selling, and selling when others are buying.
Petulia is a contrarian because instead of selling stock during the downward trend, she opted to buy stock instead, hoping for a rise in the market in the short, or in the long-term.
Answer:
Their buying behaviors differ because of their ability to buy, called their <u>"buying power",</u> which is largely determined by income.
Explanation:
Buying power as it name is explaining that it refers to the ability of an individual to purchase goods and services. But buying power can take on an alternate importance relying upon the unique situation or industry, in finance, purchasing power alludes to the measure of cash accessible for investors to buy securities in an utilized record.