Answer:
The correct answer is Decrease.
Explanation:
The external factors of uncertainty cause a collapse of the value of the shares in the stock market, by increasing the level of skepticism according to any adverse situation in the market that causes a drop in the negotiation of the titles. An investor generally in this scenario will try to take care of their assets by trading the shares at a lower value, which directly affects the earnings of the owner of the share.
Answer:
Current price : $24.05
Price in 3 years : $27.05
Explanation:
The Current stock price of Herjavec Co will be determined by the formula given below;
Po = [Do (1 + g) ] / (r - g)
Po = Current price
Do = Current dividend
r = Rate of return
g = growth of dividend
Po = ($1.85 * 1.04) / (0.12 - 0.04)
Po = $1.924 / 0.08
Po = $24.05.
The stock price of Herjavec Co after 3 years will be determined by the formula given below;
P3 = Do (1 + g)^4 / (r - g)
P3 = [$1.85 * (1.04)^4] / (0.12 - 0.04)
P3 = $27.05
Explanation:
An advertising message to be attractive and generate the desired effect, it must reach its potential audience through communication aligned with the interests and desires of the potential audience.
Firstly, as the potential audience is students, it would be ideal to use an advertising communication channel such as social media, where there is a large presence of young people.
It is ideal that advertising involves elements of student culture to generate identification, desire and proximity to the potential audience, so a good choice would be to develop a campaign that involves the product with sports for example, the snack company could be more involved with the culture students, such as sponsoring a college football team and advertising their brand at games, or distributing free snacks at college events.
Answer:
What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?
W1: Risky Porfolio = 17%
W2: Risk Free Asset = 83%
E(Rp): Rate of Return: 6%
E(Rp) = W1 *R1 + W2*R2
E(Rp) = 17%*16% + 83%*4% = 6%
Explanation:
To find the proportion of investment on each assets it''s necessary to applied the following equation:
E(Rp) = W1 *R1 + W2*R2
To find W2 we define it as (1-w1) and then then the equation it's solved.
Where :
E(Rp) = Expected Return
W1 : Proportion of Risky Portfolio
R1 : Expected return of Risky Portfolio
W2: Proportion of Risk Free Asset
R2 : Expected return of Risk Free Asset
Answer:
The $1000 saved would be $1100 after one year and $1,210 after two years
Explanation:
$1000 saved by the consumer in year 1 would equal a higher amount which is the future value when interest rate is 10%,in other words the future value is usually computed with the below formula:
FV=PV*(1+r)^N
PV is the amount saved which is $1000
r is the lending or borrowing rate of 10%
N is the time horizon for the investment which 1 year
FV=$1000*(1+10%)^1
FV=$1100
if the amount is reinvested in year 2 , the future value at the end of year 2 is as follows:
FV=$1100*(1+10%)^1
FV=$1,210