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3 years ago

5

A certificate of deposit is a receipt showing that an investor has made an interest bearing loan to a bank or a government or a

corporate bond.
a. True
b. False

2 answers:

Hatshy [7]3 years ago

8 0

I believe that this sentence is True, I'm not completely sure though : )

Mekhanik [1.2K]3 years ago

4 0

certificate of deposit is the right answer

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United Birdseed is expected to pay the following dividends over the next three years: After year 3, dividends are expected to gr

elena-14-01-66 [18.8K]

The question is incomplete. See the complete one below:

Dividends per share at time 1: Div 1 1.00

Dividends per share at time 2: Div 2 1.20

Dividends per share at time 3: Div 3 1.44

Growth Rate after time 3 forever: g 0.05

Discount Rate: r 0.10

Find the price per share of United Bird Seed at time 0

Answer:

Stock price = $24.703

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would arise from the asset discounted at the required rate of return.

In this question, the cash flows are the dividends as given in the question and the rate of return (discount rate) is 10%

The Present Value of a future cash flow is the amount that needs to be invested today at a particular rate of return to equal the same cash flow in the future. Present value means the value in year 0 or now

The idea is premised on the concept of the time value of money. The idea that $1 today is not the same as $1 tomorow. The $1 of today is worth more than that of tomorrow; and because of the opportunity to earn interest.

So if an asset (e.g a stock) promises some cash flows in the future, those cash flows need to be brought to their present values and then be added to arrive at the value of the asset

The process of calculating the present value of a future sum is called discounting. So to calculate the stock price in this question, we shall discount the future dividends using the required rate of return and then add them together.

This is done as follows:

PV of Div. in year 1= 1.00/(1.10)= 0.909

PV of Div. year 2= 1.20/(1.10)²= 0.992

PV of Div in year 3= 1.44/(1.10)³=0.082

PV (in year 3) of Div payable in year 4 and beyond = (1.44×1.05)/(0.10-0.05)= 30.24.

PV (in year 0) of Div payable in year 4 and beyond= 30.24/(1.10)³= 22.720

Stock price = Sum of the PV of the future dividends

=0.909+0.992+0.082+22.720= $24.703

6 0

3 years ago

Market researchers often compute the “mean” or average of data collected. Wha is the mean income of the following three people s

zheka24 [161]

Answer: The mean income of the three people surveyed is $33,000.

The mean or average of a data set is nothing but the sum total of all the observations in a given set of data divided by the number of observations.

The formula for calculating the mean is:

$\mathbf{\overline{X} = \frac{X_{1}+X_{2}+X_{3}.....+X_{n}}{N} }$

where

$\overline{X}$ is the mean or average

X₁ , X₂, X₃ .......Xn refers to the observations

N is the total number of observations

Substituting the values in the formula for mean we get,

$\mathbf{\overline{X} = \frac{34000+44000+21000}{3}}$

$\mathbf{\overline{X} = \frac{99000}{3}}$

$\mathbf{\overline{X} = 33,000}$

7 0

4 years ago

Innove Tech is a technological firm that wants to build a global service delivery system. It has consulted a larger firm, Ziff C

dimaraw [331]

Answer:

(C) Acquisition cost

Explanation:

The correct word for the given statement is acquisition cost

So option (c) is correct option

Acquisition cost alludes to the in with no reservations cost to buy a benefit. These expenses incorporate delivery, deals charges, and customs expenses, just as the expenses of site planning, establishment, and testing.

When securing property, obtaining expenses can incorporate looking over, shutting charges, and taking care of liens.

4 0

3 years ago

Regarding the effects of coaching on standardized test scores, which of the following statements is most representative of curre

Alenkasestr [34]

The correct answer is choice a, coaching can lead to 100-point gains if the quality of coaching is high.

Current research has been published by the College Board indicating that students using a high quality coaching program can increase their standardized test scores by over 100 points.

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3 years ago

Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the fol

Andrei [34K]

Answer:

Almost every other business in this universe now relies upon group thinking rather than individual approach to anything.

It has several advantages, some of them are pointed out below:

o) Equality bias, when there are group discussion, this means that everyone has a part of say in the final decision and that leads to equality bias, which is beneficial.

o) More alternatives are generated, it is a fact that when an individual takes a decision, he/she is neglecting a lot of other options to explore which could be a lot beneficial for the business.

o) More acceptance of the final decision, Since the final decision taken is with the approval and consent of everyone, there is a possibility that the final decision will be more acceptable.

o) Lastly, It creates Synergy, synergy is the idea that a decision as a whole is better than in parts.

Hope this helps you. Good Luck.

3 0

3 years ago