Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
- P₀ = $90
- Div₁ = ?
- Re = 9%
- g = 9% / 2 = 4.5%
Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
Answer:
D. allow both the premium and benefit payout to vary with investment returns
Explanation:
Variable universal life insurance policies allow both the premium and benefit payout to vary with investment returns. In the variable universal life insurance policy it is flexible and gives insured with the option to invest as well as alter the insurance coverage with ease.
Policyholder has the option to decide the amount and the frequency of premium payment in a specific limits.
Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
The Nominal GDP of the economy that produces two goods in 2014 is $170.
The Nominal GDP of the economy that produces two goods in 2015 is $320.
The Real GDP in 2015 using 2014 as base year is $250.
The GDP deflator of an economy that produces two goods is 1.28.
Gross domestic product is the sum of goods and services that a country produces in a year.
Nominal GDP is GDP calculated using current year prices. Real GDP is GDP that is calculated using base year prices.
GDP deflator is the ratio of prices of goods and services produced using current year prices and prices of goods and services using base year prices.
Nominal GDP in 2014: (15 x $2) + (20 x $7) = $170.
Nominal GDP in 2015: (20 x $4) + (30 x $8) = $320
Real GDP in 2015: (20 x $2) + (30 x $7) = $250
GDP deflator = (nominal GDP / real GDP) x 100
($320 / $250) x 100 = 1.28
To learn more about real GDP, please check: brainly.com/question/23126579?referrer=searchResults
Answer:
A. all income and expenses
