Answer:
1 crop rotation maintains soil fertility because crops use up different nutrients
Answer:
Higher prices.
Explanation:
Expansionary monetary policy seeks to grow the economy by increasing the money supply, lowering interest rates, and stimulating demand. As we know from the supply/demand curves, higher demand leads to higher price levels.
Answer:
$28.125
Explanation:
Dividend D1= $2
(Dividend is given at the end of 1 year)
Growth g= 4% or 0.04
Required Return r = 12% or 0.12
Step1- Share price of company A today
As per Dividend Growth Model
Share price =Expected dividend/(required return - growth rate)
S0 = Do(1+g) / (r-g)
S0 = D1/(r-g)
S0 = 2/(0.12-0.04)
S0 = $25
Therefore share price of company A today for given details will be $25
Step2 - Expected dividend at the end of 3 years
D4=D0(1+g)^4
( as we already have D1 which is one time growth multiplied, therefore to find dividend at the end of 3rd year we will multiply 1 Less growth multiplier to D1)
D4= D1(1+g)^3
D4 = 2(1+0.04)^3
D4 = $2.25
Step3 - Share price of company A in 3 year
Share price =Expected dividend/(required return - growth rate)
S3 = D4/(r-g)
S3 = 2.25/(0.12-0.04)
S3 = $28.125
Therefore share price of company A in 3 years for given details will be $28.125
Investors who wish to liquidate their holdings in a closed-end fund may sell their shares on the open market.
Answer:
Compare and Contrast
- Both bonds have face values.
- Bond with coupon rate pays the interest whereas zero-coupon bond does not pay such interest periodically.
- Bond with coupon rate is issued on the market value whereas zero-coupon bond is issued on deep discount value.
- A Zero-coupon bond is more volatile than a bond with a coupon rate.
- Usually zero-coupon bond has a higher yield rate than a bond with a coupon rate.
- A zero-coupon bond may also help to save taxes whereas a bond with a coupon rate has tax consequences for the investor due to interest income.
Explanation:
Bond with a coupon rate
The bond issued with coupon rate has an interest rate which is used to calculate the interest payment or income. This bond is issued on the market value.
Zero-coupon Bond
The zero-coupon bond is a bond that does not have any interest and does not pay interest or receive interest income. This bond is issued at a deep discount value.
