I think the answer is either a or c
He should pay no more than $66.68 per share
Explanation:
Given ,
1. 2015: $1.00
2. 2016: $1.25
3. 2017: $1.50
Earnings per share = $4.50
P/E ratio = 20
Required rate of return = 12%
Stock price per share expressed according to P / E ratio
P/E Ratio = Market Price per share ÷ Earnings per share
20 = Market Price per share ÷ $4.50
Market Price per share = 20 × $4.50
Market Price per share = $90
Earn 12% of return
So here you discount to present value all the planned dividend and market price. use as discount factor here a necessary rate of return
present value of all amounts = 66.7
So, maximum amount that is paid to earn 12% return is $66.7
Answer:
The future value of the $200 invested yearly for 4 years at 8% is $973.32
Explanation:
The future value of an immediate annuity is given by the formula = (1+r)*[P*((1+r)^n-1)/r]
P=is the periodic payment of $200
r=rate of return=8 percent
n=number of years=4
By slotting the variables into the formula we have:
Fv=(1+0.08)*(200*((1+0.08)^4-1)/0.08)
FV=$973.32
Judging by the concept of time value of money, it is expected that the sum invested at interest would have been much more at maturity of the investment as $1 today should give a lot more than $1 in future.
Answer:
c. A new technology such as the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Nominal interest rate is the sum of real interest rate and expected inflation rate.
If expected inflation rate falls, the nominal interest rate also falls.
During a recession, people are more unwilling to borrow funds ,this pushes interest rate down.
If investment opportunities increases, the demand for funds would increase and nominal interest rate would increase too.
I hope my answer helps you
Answer: Brand alignment
Explanation:
The brand alignment is one of the simplest way of development the new products and the services and also makes the marketing strategies more effective in an organization.
According to the given text, the practices are basically promoting the different types of opportunities for the purpose of career progress and also the brand alignment.
The main importance of the brand alignment is that we can easily represent our company brand to the client and also provide the internal consistent in the market.
Therefore, Brand alignment is the correct answer.