Answer:
I would say its false ...............
Answer:
The new price will be $11.89 if the market risk premium falls to 8% changing the required rate of return to 15.6%.
Explanation:
We will calculate the price of the share today using the constant growth model of DDM as the stock's dividends are growing at a constant rate forever. The formula for constant growth model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend expected for the next period or D1
- r is the required rate of return
- g is the growth rate in dividends
We need to find the new required rate of return. The required rate is unknown and can be calculated using the CAPM. The required rate under CAPM is,
r = rRF + Beta * rpM
r = 0.06 + 1.2 * 0.08 = 0.156 or 15.6%
Plugging in the available values for new r, g and D0 to calculate price today,
P0 = 1.2 * (1 + 0.05) / (0.156 - 0.05)
P0 = $11.886 rounded off to $11.89
Answer:
a) 40 yrs Price=$910.49 b) 17 yrs Price=$924.51 c) 8 yrs Price=$948.54
Explanation:
Hi, well, what we need to do is to use the following data and formula in order to find the ´price of each bond, just by changing the maturity time for each , option (40 years, 17 years, and 8 years). Let's illustrate with the first price, when its maturity is 40 years.
That was a) Price=$910.49
That was b) Price=$924.51
Finally, that was c) Price=$948.54
Best of luck.
Rony as the managing director of a fabric manufacturing company enjoys an employee benefit called <u>perquisites</u><u> (D)</u>.
Let's discuss each employee benefit option we have:
Novated lease is an employee benefit that allows an employer pays for its employee car lease and car runnit costs out of its employee's salary package. An employee will choose a car he wants and a novated lease arrangement is set up between the employee, employeer, and car agent. The employer then will pay directly to the car agent from the employee's salary. The employee may save tax and running costs using this kind of leasing.
Fiscal Incidence is the combined overall economic impact of both government taxation and expenditure on the real economic income of individuals. Fiscal incidence happens when the econonmic incidence of taxation is combined with the economic incidence of government expenditure. Fiscal incidence is the overall increase or decrease in welfare that individual enjoys from the state's taxing and spending policies.
Swaps is a derivative contract which stated that the two parties will exchange the cash flows or liabilities from two different financial instruments. Swaps usually are based on a notional principal amount. The most common kind of swap is an interest rate swap.
Perquisites or fringe benefits are benefits an employee received over and above his standard salary. Some of these components are taxed separately and someother are tax-exempted. Perquisites may be classified into 3 different types:
- Taxable perquisites
- Tax-exempted perquisites
- Perquisites taxable only by employee
By offering perquisites to its employee, a company may increase its employee productivity, loyalty and retention. Prequisites could also be used as an attraction for top talent.
Learn more about Employee Benefit here: brainly.com/question/12143528
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Complete Question:
Rony is the managing director of a fabric manufacturing company. In order to limit the profit of the company and therefore, the txes on the business the management pays a hefty amount to Rony as year-end bonuses. The company also pays for his family cavations and foreign trips. The benefits enjoyed by Rony are called ____
a. Novated leases
b. Fiscal incidences
c. Swaps
d. Perquisites
Answer: Smallpox spreads rapidly and requires immediate isolation.
Explanation:
Smallpox is a highly contagious disease that can be fatal. Its symptoms are the appearance of pustules throughout the body, fever, headache, and body, among others.
The virus has an incubation period in which it is not contagious, but when pustules appear it is very contagious. The virus is spread by contact with sick patients through bodily fluids, contaminated items, and contaminated air under certain conditions.
Because the virus has a very high contagion rate, and there is no cure, in case a biochemical attack with the use of the smallpox virus, the safety protocol is to quickly isolate people who were exposed to prevent the virus from spreading.
<em>I hope this information can help you</em>