The stock is now trading at $52.16 per share.
The current value of an annuity of n regular payments of P at r% with yearly payments is provided by:
PV = P × (1 -(
÷r))
Estes Park Corp. distributes a fixed rate of a dividend of P = $7.80 per share on its shares. The corporation will retain this dividend for the following n = 13 years before ceasing dividend payments permanently. If the necessary returns on this stock are not metis r = 11.2% = 0.112.
The actual share price is calculated as follows:
Current share price = $7.80 × (1 -(
÷0.112))
$7.80 × ((1 - 0.251) ÷ 0.112)
$52.16
Therefore, the current share price is $52.16
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Answer:
No
Explanation:
Long term bonds might not be great investments if the interest rate fall or even slide into negative value in the future. This means that the bond will become insignificant in value.
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Answer:
6.80%
Explanation:
The average nominal returns is the sum of the returns for 5 years divided by the number of returns considered( i.e 5, 5 returns for 5 years)
average nominal returns=(6%-13%+24%+18%+15%)/5
average nominal returns=10.00%
The Fisher's equation is shown thus:
(1 + i) = (1 + r) (1 + π)
i=nominal return=10.00%
r=average real return=the unknown
π=inflation rate=3%
(1+10.00%)=(1+r)*(1+3%)
1.10=(1+r)*1.03
1+1=1.10/1.03
r=(1.10/1.03)-1
r=6.80%
The false statement about cover letters is that: C. a cover letter is sent before a résumé so that the employer knows it is coming.
<h3>What is a
cover letter?</h3>
A cover letter can be defined as a type of letter that is attached as an introduction and it generally accompanies another document such as a résumé.
This ultimately implies that, the false statement about cover letters is saying it's sent before a résumé to an employer of labor, so he or she knows it is coming.
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