Answer: 7.35%
Explanation:
Based on the information given, the market rate of return on this stock will be calculated as:
= (D1/P0) +G
where,
D1= Dividend at year 1 = 2.20
P = price at present =43.19
G = dividend growth rate =2.25%
We then slot the figures into the formula and we will get:
= (D1/P0) +G
= (2.20 / 43.19) + 2.25%
= 0.051 + 2.25%
= 5.1% + 2.25%
= 7.35%
Therefore, the market rate of return will be 7.35%.
Answer:
4.18%
Explanation:
The formula for used for this calculation is given as
Future value = Present( Initial) value (1 + r)ⁿ
Where n = number of years of the investment = 13 years
Future value (Amount of the investment after 13 years)= $5,280
Present ( Initial) value (Amount of the investment before 13 years) = $3,100
r = rate of return
The formula for r is derived as:
r = (Future value/ Present (initial) value)¹/ⁿ- 1
r = ($5,280/$3,100)¹/¹³ - 1
r = 1.0418139573 - 1
r = 0.0418139573
r is always in percentage format
r = 0.0418139573 × 100
r= 4.18139573%
Approximately, the rate of return annually for 13 years = 4.18%
Answer:
<em>Value $ 256,250</em>
<em>rounding against nearest 1,000 dollar: 256,000</em>
<em />
Explanation:
From the gross income we subtract the expenses and vanacy losses.
40,000 gross income - 3,500 vacancy - 16,000 operating expense
20,500 net
<em />
Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%
$ 20,500 / 0.08 = <em>$ 256,250</em>
The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.
<h3>What is the reserve ratio?</h3>
The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.
<h3>How is reserve ratio determined?</h3>
- The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
- The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>
The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.
learn more about reserve ratio here
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