Answer: $77.13
Explanation:
Based on the information given in the question, the current price of Lee's stock will be calculated thus:
First, the required rate of return will be:
= 8% + (1.5 × 6%) = 8% + 9% = 17%
Year 1:
Cash flow: 1.05
Present value: 0.90
Year 2:
Cash flow: 1.47
Present value: 1.07
Year 3:
Cash flow: 2.06
Present value: 1.28
Year 4:
Cash flow: 118.34
Present value: 73.88
The current price of Lee's stock will be:
= 0.90 + 1.07 + 1.28 + 73.88
= 77.13
The current price of Lee's stock is $77.13.
Answer:
Its important to diversify because it can help an investor manage risk and reduce the volatility of an asset's price movements. If his high risk investment backfires hes left with almost nothing, diversifying can give him a safety blanket just incase. The many ways he can diversify include, but aren't limited to, Use asset allocation or target date funds, Invest in a mix of mutual funds or ETFs, Customize with individual stocks and bonds, Vary company size and type, Invest abroad, and add complexity.
Explanation:
Answer:
See below
Explanation:
<u>1. How revenue affects Profits</u>
Revenue is income that a business receives selling its products or from the services it provides. Income from other sources such as win in lawsuits is also revenue.
A business with high revenue is more profitable than a company with low income. For a business to make profits, its revenues must exceed its total expenditure. Profit is total income minus expenses. After the breakeven, extra sales contribute to profits. The more the sales, the higher the profits. Low revenue makes low profits.
<u>2. How do expenses affect profit?</u>
Expenses are costs incurred by a business in its productions and sales processes. Service providers incur expenses as they provide services to customers.
Expenses have a direct impact on profits. High costs may result in losses. Profits are realized after deducting expenses from revenues.
If the expenses are high, then profits will be minimal. Low expenses will result in high profits.
The option of saving money that offers the most liquidity is a piggy bank. (option C)
<h3>What is liquidity?</h3>
Liquidity can be described as the ease with which an asset can easily be converted to cash. Paper currency and coins is the most liquid assets. Real estate is illiquid because it takes a long time for a real estate asset (e.g a house) to be sold and proceeds converted to cash.
Liquid assets earn less returns when compared with assets that are less liquid. This is because illiquid assets earn an illiquidity premium. An illiquidity premium compensates holders for holding an illiquid asset.
Money in a piggy bank is already in cash or coins and there is no need to convert it to cash again. Also, money in a piggybank is more accessible than the other options.
To learn more about liquidity, please check: brainly.com/question/15691477
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Inclusive and participatory management practices are the most effective in today's society. The indices show that companies that adopt this style of management achieve continuous improvements throughout the organizational process. Organizational culture focused on employee well-being ensures a positive culture and this influences them to do their job more effectively. It also increases security, pride in being part of that company, and values.
