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12345 [234]
3 years ago
6

PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!Mr. Slater invested $100,000 in a portfolio that is contains 60% stocks and 40%

bonds. Over the course of a year, the value of the stocks increased to 67%, and the value of the bonds decreased to 33%. The current value of his investment is $118,400. How much should Mr. Slater move from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds?
A. $8,900

B. $8,500

C. $8,288

D. $8,100
Business
1 answer:
Tju [1.3M]3 years ago
8 0

Answer:

8,288

Explanation:

Mr. Slater should move 8,288 from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds

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2 years ago
CDB stock is currently priced at $82. The company will pay a dividend of $4.65 next year and investors require a return of 10.9
lidiya [134]

Answer:

g = 0.05229 or 5.229% rounded off to 5.23%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

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Plugging in the available values for P0, D1 and r, we can calculate the value of g.

82 = 4.65  /  (0.109 - g)

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