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arlik [135]
2 years ago
5

Which answer is not a cost to the investor that is included in the calculation of an investment's interest rate

Business
1 answer:
jeyben [28]2 years ago
4 0

Answer:

Risk of a bad investment

Explanation:

When an investor is calculating an investment's interest rate, he/she must include all brokerage commissions and fees , inflation rate (interest rate must exceed the inflation rate) and the investor's opportunity cost.

Investors are risk adverse, which means that a risky investment should yield a higher return. That could be considered a rational investment rule, but it is not included in the calculation of the interest rate.

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You plan on purchasing the stock of Red Cigars Inc. and you expect it to pay a dividend of​ $3.15 in 1​ year, $3.55 in 2​ years,
Musya8 [376]

Answer:

Price of stock = $78.143

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.  

So we will discount the steams of dividend using the required rate of 11.0% as follows

Price of stock =3.15 × 1.11^(-1)  +3.55× 1.11^(-2) +4.05 1.11^(3)  +95× 1.11^(-3)

=78.143

Price of stock = $78.143

3 0
3 years ago
Individuals join groups for two primary reasons: to enjoy the company of others and to accomplish goals unattainable by themselv
Bond [772]

The given statement about the reasons why individuals join groups is True.

<h3>What is a Group?</h3>

This refers to the collection of individuals in unison to achieve a set goal or to expand their interests, leveraging on the network of other members.

Hence, we can see that the given statement that Individuals join groups for two primary reasons: to enjoy the company of others and to accomplish goals unattainable by themselves is true.

Read more about interest groups here:
brainly.com/question/14363531

5 0
1 year ago
What account is more likely to have penalties for frequent withdrawls?
coldgirl [10]

Answer:

saving account is a very important

3 0
2 years ago
Qualities of the mind<br><br>​
Pani-rosa [81]
Metta (lovingkindness/friendliness), karuna (compassion), mudita (empathetic joy), and upekkha (equanimity).
8 0
2 years ago
The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used for the old-fas
andreyandreev [35.5K]

Answer:

Product

Explanation:

Marketing mix involves four elements

a. product

b. price

c. place

d. promotion

The statement given indicates that the recipe of cookies focuses on the product element of marketing mix.

6 0
2 years ago
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