Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
Answer: behavioral
Explanation: The tendency in an individual that make him behave in a certain way in a particular situation is called the behavioral component of his attitude. It depicts the intention of a person.
In the given case, Kimberley wants to inform her subordinate what she has not achieved and also advice her how she can improve. This shows that she has a developing instinct and leadership quality in her.
Thus, from the above we can conclude that the correct option is D.
Answer:
1. Population of those owning a pet in the business area
2. Secondary research technique
Explanation:
1. This provides valuable insight into the possible expected market demand for your cremation services, because the number of those having pets let you know if it is viable to get clients in that location or relocate to another promising location.
2. A secondary research technique allows for a situation as this; in which one has a limited budget. This is the case because one can quickly lookup existing research data from reputable sources such as the US Census Bureau free of charge about the target audience.
Answer:
The annual YTM will be = 6.133735546% rounded off to 6.13%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Coupon payment = 1000 * 0.06 * 6/12 = 30
Number of periods remaining till maturity = 11 * 2 = 22
semi annual YTM = [ (30 + (1000 - 989 / 22)) / (1000 + 989 / 2)
semi annual YTM = 0.03066867773 or 3.066867773% rounded off to 3.07%
The annual YTM will be = 3.066867773% * 2 = 6.133735546% rounded off to 6.13%
