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motikmotik
3 years ago
8

You are considering a stock that is expected to pay dividends during the next five years of $0.50, $0,52, $0,54, $0,56 and $0.58

. You estimate that you can sell the stock for $100 at the end of five years. Your required rate of return is 15% and the stock is currently selling for $65. If you purchase the stock, what rate of return do you expect to earn
Business
1 answer:
nikklg [1K]3 years ago
4 0

Answer:

9.7%

Explanation:

The rate of return can be determined using a financial calculator

Cash flow in year 0 = -65

Cash flow in year 1 = $0.50

Cash flow in year 2 = $0.52

Cash flow in year 3 = $0.54

Cash flow in year 4 = $0.56

Cash flow in year 5 = $0.58 + $100

Rate of return = 9.7%

To find the rate of return using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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Nadiya, your classmate, is struggling to keep up with class. Last week, she told you that she even thought about cheating on a t
FinnZ [79.3K]

Answer:

fundamental attribution error.

Explanation:

This theory in sociology also called the attribution effect states that people tend to over-attribute behavior of others to internal causes or traits.

The Professor makes this "fundamental attribution error" by failing to consider Nadiya's situation; meaning the situational information was insufficiently taken into account before reaching a conclusion (Probably Nadiya is under emotional distresse maybe she's grieving the death of her Farther).

3 0
3 years ago
Suppose Foreign (Upper F )imposes a tariff on imports from Home (Upper H ). All else​ equal, this action will cause the​ long-ru
Orlov [11]

Answer:

D. increase; decrease

Explanation:

When foreign imposes a tariff on import from home then there will be decreaing the import leading to a decreased demand of domestic currency by foreigners.

Therefore, domestic currency will depreciate and foreign currency will appreciate thus this action will lead to real home/Foreign rate to increase and will decrease the nominal home/foreign exchange rate.

5 0
3 years ago
To make a decision resulting in good corporate citizenship, a business should evaluate the decision based on:
Sergio039 [100]

Answer:

All of them

Explanation:

When making decisions, a business should evaluate:

  • Legal implications of each decision : do our decisions comply with all applicable laws and regulation?
  • Public relations impact : how will the public feel about our decision?
  • Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
  • Financial implications: does our decision benefit our business?
7 0
4 years ago
On May 1, Study and Burrow, two college professors, entered into and oral contract under which study agreed to sell his computer
nasty-shy [4]

Answer:

Check the following explanation

Explanation:

a) Usually a contract has the following elements:

Offer .

Acceptance .

Consideration .

Intention to create a legal relationship .

In the given case, the intention to create a legal relationship is missing. Though Study had sent a written legal contract to Burrow to affirm the contract, Burrow did not show any interest regarding the same. Hence Burrow can’t be sued for breach of contracts. Moreover the confirmation letter sent by Study does not qualify under the Merchant Memo Rule as the involved parties are not merchants. Burrow can use the terms of UCC for his favour. The UCC states that any contract with value more than $500 must be in writing. As the involved amount in this case is $1300, hence this case does not qualify as a contract under UCC.

b) If Study and Burrow were merchants, then the Merchant Memo Rule gets applicable. Then in that case, if 2 merchants enter into an oral contract, which is worth $500 or more and one of the merchant sends a written confirmation for the same, then a contract will be considered enforceable. In such a case, Burrow will be held liable for breach of contract and can be sued by Study.

4 0
3 years ago
Which of the following individuals has enrolled in a plan on a fixed income
ahrayia [7]

Fixed income gives a steady of income to the individual.

<h3>What is a fixed income?</h3>

The complete question wasn't found online. An overview was given as the complete information wasn't found.

It should be noted that a fixed income means an investment approach that is focused on presentation of capital and income.

The examples of fixed income include municipal bonds, certificate of deposit, etc.

It should be noted that fixed income orders a steady stream of income with less risk.

Learn more about income on:

brainly.com/question/2021736

#SPJ1

5 0
2 years ago
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