Answer:
The maximum price that should be paid for one share of this stock today is $46.86
Explanation:
Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.
The price of this stock at time zero (t=0) will be,
Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2
Price = $46.86
Answer:
B. A card with a high compound interest rate
Explanation:
A.P.E.X
Answer: Real estate
Explanation: Liquidity refers to the ability of a security to be converted into cash without having a major change in its price. In other words, liquidity is the relationship between the speed of sale of a security and its change in price.
Real estate refers to the land or other housing facilities etc. These assets require huge amount for purchase. It takes to find a buyer willing to make such a big investment, thus, they are not liquid.
Hence from the above we can conclude that the right option is C.
Answer:
448
Explanation:
Because you add them up divide by 2 and times by 4
