Answer and Explanation:
The formula to compute the required rate of return using the CAPM and constant growth model is as follows
Under CAPM
The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
Constant growth model = Dividend ÷ Price + Growth rate
For Estee lauder,
Under CAPM = 4% + 0.74 × (10% - 4%)
= 4% + 0.74 × 6%
= 4% + 4.44%
= 8.44%
Under the Constant growth model
= $1.70 ÷ $50 + 16.50%
= 19.90%
For Kimco realty,
Under CAPM = 4% + 1.51 × (10% - 4%)
= 4% + 1.51 × 6%
= 4% + 9.06%
= 13.06%
Under the Constant growth model
= $1.68 ÷ $82 + 11%
= 13.05%
For Estee lauder,
Under CAPM = 4% + 1.02× (10% - 4%)
= 4% + 1.02 × 6%
= 4% + 6.12%
= 10.12%
Under the Constant growth model
= $0.60 ÷ $10 + 13%
= 19.00%
A. Occupational Outlook Handbook.
Answer:
Sorry if this is unclear btw!
Explanation:
A percentage is a number multiplied by 100. So, 200 ÷ 100 = 2. So, if you are adding 200% to a number, you only add 2. When multipliying by 200%, you multiply by 2. Same for subtraction and division!
Answer:
The answer is C.
Explanation:
Call option is a financial contract that gives the holder(holder of call option) the right but not the obligation to buy an asset(bond, equity etc.). The holder of call option expects the underlying assets to increase in future.
The excercise price or strike price is $100
The premium(the price paid by the buyer to the seller to obtain this right) is $5
The total is $105($100 + $5)
So for profit to be recorded, this must be over $105 which is from $106.
Answer:
a. Is the expected value of the dependent variable Y when all of the independent variables have the value zero
Explanation:
- This regression is the extension of the simple linear regression and is used when we want to define the values of the variable based on the values of the two or more variables and constant terms in the regression analysis are the values at which the regression line crosses at the Y-axis.