If a company's free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORREC
1 answer:
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Answer:
The value of a right is $1
Explanation:
10 rights are needed to buy 1 share at the price of $19
Value of total rights = $29 - $19 =$10
Value of a right = = $1
Answer:
a) unemployment rate = 15
b) unemployment rate = 2.5
Explanation:
unemployed people are those who are willing and available to work and have actively been seeking a job in the past four weeks. This accurately describes the 12 people who are willing, able and looking for work but cannot find jobs. To calculate the unemployment rate in percentage, the following formula is used:
Where:
a) Number of unemployed = 12
Labour force = 80 (number of people over 16 years of age)
b) if 10 of the unemployed people get discouraged and give up looking for work, the number of unemployed becomes 2 persons, (12 - 10 = 2).
Answer:
Growth Rate = 5.73%
Explanation:
The present value of stock formula can be used here to solve this problem.
The formula is:
Where
is the current stock price
is the dividend to be paid next year
r is the rate of return required
g is the growth rate expected
Now, the first 3 variables are given, we need to find g. Substituting, we find our answer:
In percentage, it is
<u>Growth Rate = 5.73%</u>