Answer:
You can not check the property beforehand for damages, which is a risk.
Explanation:
A foreclosure property is that property which is being sold off by a lender in order to payoff default.
There are a number of risks involved in buying such property. The process of buying is lengthy and complicated.
Buyers are not allowed to check the property before auction. Often these properties are damaged because the owners can not afford to manage. Or the angry owners may damage the property purposely in order to punish the lenders.
Answer:
Your answer is <u>A. development directors</u>
Hope this helps!
Answer:
$28.57
Explanation:
Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.
Therefore the Dividend that is to be paid next year will be:
$2Growth rates
5 %Rates of return
12% Return on Investment
Formular for the calculation of current price of the stock = D1/(r-g)
Where:
D1=2%
r=12%
g=6%
Hence:
2/ (0.12-0.05)= $ 33.33
=2/0.07
=$28.57
Therefore the amount I should be prepared to pay for the stock today will be $28.57
Answer:
$1.3794
Explanation:
The computation of the projected dividend for the coming year is shown below:
Last year dividend paid = Do
Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32
Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2
Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3
Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22
Now the price at year 4 is
P4 = D4 × (1+g) ÷ ( R-g )
= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )
= Do × 100.08
Use Gordon Growth Model
The Current Price of Stock is
= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4
$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)
$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )
Do = $1.045
Now
Projected Dividend for Year 1 is
= Do × 1.32
= $1.045 × 1.32
= $1.3794
Answer:
Being a businessman and being charitable at the same time is just next to impossible at the time of expanding one's firm.
Explanation:
A business person's main motive has to be his ability to expand, so that he reaches that particular stage to do some charity for his fellow citizens. If you look at the unemployment part, then you must know that every person is somehow talented and in countries like the US, no one lives unemployed.
Therefore, it is necessary for a business person to calculate the cost factors, that does not only include the cost of labors, but also the cost of exporting the materials to Bangladesh and the cost of importing the final products. Then he needs to compare the total cost making the shoes in Bangladesh with making them via the US labors, and then take the decision accordingly.