Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.
However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.
Answer: Mutually exclusive
Explanation:
In probability theory and logic, two propositions or events are disjoint or mutually exclusive if both events cannot occur at the same time. An example is the outcomes derived from the single toss of a coin which either be head or tail
In the project example given, the theory used is called mutually exclusive since both projects can not be chosen at the same time and it is only one project at w time. Mutually exclusive events are also called independent events since they have no effect on the viability of the other options.
Answer:
a) the correct answer is "B"
b) the correct answer is "C"
Explanation:
a) the correct answer is "B"
relies on nominal GDP which might have increased because of price increases and not output increases. As nominal GDP accounts for the price and it is calculated at the current price level. The answer is "B".
b) the correct answer is "C"
We can ask for growth rate of real GDP which excludes price change.
Capitalized interest refers to interest that is added to some kind of debt and that is included in current balance accounts, as opposed to waiting to figure in the cost of interest.
Answer:
$47
Explanation:
Given that,
Required return = 11.00%
Expect a growth rate = 6.00%
Expected to pay a dividend next year = $2.35
Stock Price:
= Dividends (Div) ÷ (Expected Return (R) - Dividend Growth Rate (G))
= $2.35 ÷ (11% - 6%)
= $2.35 ÷ (5%)
= $47
Therefore, the current fair price for the stock is $47.