Answer:
$109
$118.81
18.26%
Explanation:
Intrinsic value can be determined using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
dividend, growth rate and cost of equity are not given and they have to be calculated
growth rate = retention rate x ROE
Retention rate = 1 - payout ratio = 1 - 0.5 = 0.5 = 50%
0.5 x 18% = 9%
According to the capital asset price model: cost of equity = risk free + beta x (market rate of return - risk free rate of return)
9% + 2x (14% - 9%) = 19%
dividend = payout ratio x earnings per share
0.5 x $20 = $10
Intrinsic value = = $109
Stock price in a year
= 118.81
(dividend return + price return)
price return is the return on investment as a result of appreciation or depreciation of share price
Dividend return is the return on investment from dividend earned
price return = price at the end of the year - price at the beginning of the year
Answer:
Called shareholders' equity or stockholders equity for a corporation
Explanation:
.......
Answer: 19.8%
Explanation:
Interest rate = 12%
Inflation rate = 7%
Market Interest rate will be:
= 12% + 7% + 12%(7%)
= 0.12 + 0.07 + 0.12(0.07)
= 0.12 + 0.07 + 0.0084
= 0.1984
= 19.84%
Therefore, the market interest rate per year is closest to 19.8%
Answer:
Explanation:
If we look at the term "Promiscuous" pollinator, it is meant by when the long-nosed fly does not stick to one plant species, but go to any other flower species. The members of the guild have evolved to deposit their pollen on differing parts of the nectar-seeking fly, each part characteristic of the plant species. Characteristics evolved in plants to improve pollination efficiency by a “promiscuous” pollinator is when the even though the female reproductive structure prevent them from getting the “right” pollen, the stigmata of plants in the guild of mega nosed fly do not clog because among those plants. The long-nosed flies obviously get privileged access to pools of nectar.The plants pollinated by long-nosed flies benefit from a near-exclusive pollen courier service.
Answer:
Option C: Low rates of growth of the quantity of Money
Explanation:
Growth of money and inflation rate are directly associated with each other. If the money supply increases in the economy, it may increase the demand for various products and thus increases their prices. Low inflation or the prices of commodities will not rise if;
- Supply of money in the economy is reduced
- The goods are supplied in more quantity than the inflation rate, e.g. if the inflation rate is 10 % and goods supplied increases by 15 %, then the prices of goods may fall keeping remaining factors constant.