In 20 years you'll have $5,220.
2,000×0.08=160
2,000+(160×20)= 5,220.
I believe your answer would be C. Speech and Debate. Being a lawyer requires lots of debate, and speech to support your answer and make it more clear.
Answer:
P0 = $51.9956 rounded off to $52.00
Explanation:
The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.
The formula for price of the stock today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]
Where,
- D0 is the dividend today or most recently paid dividend
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 8%
- r is the required rate of return
P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +
2.5 * (1+0.2)^3 / (1+0.15)^3 +
[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)
P0 = $51.9956 rounded off to $52.00
Explanation:
I dont really know. You can ask the tutors tho.
Answer:
the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels
Explanation:
Accumulated benefit obligation (ABO) is the nearest amount that represent the liability pension plan of the company for the time period. It is predicted and depend upon the assumption that the pension plan would be ended on instant basis also it would not considered any increment in the future salary
So according to the options given, it would determined the pension obligation that based upon the plan formula and the same would be applied to service years also it would be depend upon the existing level of salary
