According to the capital asset pricing model, the expected return on a security is the average market return.
A market is a system, institution, process, social relationship, or infrastructure configuration that parties exchange. Although parties can exchange goods and services through barter, most markets rely on sellers offering goods and services to buyers in exchange for money.
A market is a place where buyers and sellers meet to facilitate the exchange or trade of goods and services. A marketplace can be physical, like a retail store, or virtual, like an e-merchant. Other examples include illegal markets, auction markets, and financial markets.
Marketplace, the means by which the exchange of goods and services takes place through contact between buyers and sellers, either directly or through intermediaries or institutions.
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Answer:
$332.26
Explanation:
The amount to be invested today is known as the Principle Value. We discount the future cash flows using the effective interest rate to arrive at the Principle Value.
Using a financial calculator, we can determine the Principle Value (PV) simply as follows :
PV = ??
PMT = - $100
P/YR = 1
I = 2 %
FV = $1,500
N = 10
This gives a PV of ($332.26)
therefore,
$332.26 should be deposited now to meet the goals.
Answer:
The cost of newly issued preferred stock to the firm is 5.82%
Explanation:
Annual dividend = $25 * 6% = $1.5
Present price = $28
Flotation costs = 8% = 8/100 = 0.08
Cost of new stock = Annual dividend / [Current price(1 - flotation costs)]
Cost of new stock = 1.5 / [ 28(1 - 0.08)]
Cost of new stock = 1.5 / [ 28(0.92)]
Cost of new stock = 1.5 / 25.76
Cost of new stock = 0.0582
Cost of new stock = 5.82% (Approx).
Answer: Option A
Explanation: In simple words, intertemporal decision making refers to the study of how the decision made by an individual today affects the choices that he or she have in the future. It is based on the assumption that less consumption today will bring significant increase in consumption tomorrow.
In the given case, despite of having enough income to lead a healthy lifestyle in present,Lee decided to save his money in the future. This will lead to choices fro him that will give him higher utility.
Hence from the above we can conclude that the correct option is A.
Answer:
$ 896,000.00
Explanation:
September $800,000
October $920,000
November $840,000
December $760,000
Payments for November:
30percent purchase for November: = 30/100 x $ 840,000.00
= $ 252,000.00
70 percent payment for the previous month
=70/100 x $ 920,000.00
= 644,000.00
Total payments = $ 252,000 + $ 644,000.00
=$ 896,000.00
