Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
try this one outhttps://www.irs.gov/retirement-plans/401k-plans
The activity that play an important role in connecting brands to consumers in the final phases of the buying process is C. Retailing.
<h3>What is the role of retailing in the buying process?</h3>
Retailing refers to the set of activities that allow for consumers to be able to access goods and services that were produced by different companies and brands. The process of retailing often comes in the final phases of the buying project as it involves the consumers who are the end stage of the buying process as they are the ones to consume the goods and services being sold.
Retailing is therefore hugely important because it connects the brands to the consumers that they serve . Without retailing, companies would make products and services and be unable to sell them to anyone as they would not have any connection to the final consumers .
Find out more on retailing at brainly.com/question/29357664
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Answer:
Total assets $
Building 102,100
Motor vehicle 19,907
Furniture <u>10.442</u>
Total assets <u>132,449</u>
<u></u>
Total liabilities $
Mortgage loan 58,347
Outstanding loan 2,567
Utility bills unpaid <u>242</u>
Total liabilities <u> 61,156</u>
Debt ratio = Total liabilities x 100
Total assets
Debt ratio = $61,156 x 100
$132,449
Debt ratio = 46.17%
Explanation:
In this case, there is need to calculate the total assets, which is the aggregate of building, motor vehicle and furniture.
We also need to calculate the total liabilities, which is the aggregate of mortgage loan, car loan outstanding and utility bills unpaid.
Debt ratio is obtained by dividing total liabilities by total assets multiplied by 100.
<span>
<span>Finance
charge can be defined as the amount charged by a creditor to a debtor as
borrowing fees or by a seller to a buyer for allowing the buyer to extend the
payment period for a certain good/service. In this case, the original price
of the car was $3,250. But since Michael's Plumbing was not able to pay the
full amount at once, they made a down payment of $450 and later 24 equal
installments of $150. In total, the amount paid will be (450+(150*24))=
$4,050. The finance charge is what they will pay over and above the initial
cash price. This is arrived at by getting the difference as follows
$4,050-$3,250= $800</span></span>
