Answer:
N= 15
FV= 1,000
PV= 974
I= 4.03
Compute PMT
Put these values in a financial calculator
PMT = 37.9
Explanation:
Answer:
increase the quantity demanded but decrease total revenue.
Answer:
The present value of the promised gift will:
be less than $5,000.
Explanation:
The present value of $5,000 to be received in three years' time from today is less than $5,000 received. This is explained by the time value of money concept. If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751). This means that $5,000 received in year 3 is less than $5,000 received today.
Answer:
10.87%
; 17.95%
Explanation:
Expected return:
= (probability of recession × return during recession) + (probability of normal × return during normal) + (probability of boom × return during boom
)
Expected return for stock A:
= (0.16 × 0.07) + (0.57 × 0.10) + (0.27 × 0.15)
= 0.1087
= 10.87%
Expected return for stock B:
= (0.16 × -0.11) + (0.57 × 0.18) + (0.27 × 0.35)
= 0.1795
= 17.95%
Answer:
$151.72
Explanation:
Quarterly dividends of preferred stock = $2.75
Annual dividend of preferred stock = 4 * Quarterly dividend
Annual dividend of preferred stock = 4 * $2.75
Annual dividend of preferred stock = $11
Required return = 7.25% = 0.0725
Return = Dividend / Current price
0.0725 = $11 / Current price
Current price = $11 / 0.0725
Current price = 151.724138
Current price = $151.72
So, the preferred stock should sell for $151.72.
