Answer:
I dont know the answer im just saying this so I can come back to it when there is an answer
Explanation:
Answer:
a. How far away is the horizon date?
IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2.
b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations.
to determine the horizon value we can use the Gordon growth formula:
stock price = future dividend / (required rate of return - constant growth rate)
Div₀ = $3.75
Div₁ = $4.6125
Div₂ = $5.673375
Div₃ = $6.97825125
since the terminal value is calculated for year 2, we must use Div₃ in our calculations:
stock price = $6.97825125 / (9% - 6%) = $232.61
c. What is the firm's intrinsic value today, P0? Round your answer to two decimal places. Do not round your intermediate calculations.
we have to calculate the present value of:
P₀ = $4.6125/1.09 + $5.673375/1.09² + $232.608375/1.09² = $4.2317 + $4.7752 + $195.7818 = $204.7887 ≈ $204.79
Explanation:
Explanation: The formula is ATC = AFC + AVC. Use this formula. It will be useful for you
Fixed-Ratio Schedule.
Fixed Interval Schedule.
Variable-Ratio schedule.
Variable-Interval schedule.
there are 4 of them. we can rule out fixed because it's not like there are specific time or amount of time you need to buy lottery ticket to win.
we can also rule out interval because winning isn't dependent on when you buy.
only choice left is variable ratio.
Answer:
Following are the answer to this question:
Explanation:
The Monetary stimulus will increase economic time whenever an economy is progressing towards recession. The financial system will stabilize a stable market situation over the next two months to protect the market to move to a successful stage. In response to both the financial and economic crisis, the financial policies of the reserve bank. The fund's rate level falls towards its zero cut off point. The fomc will use instruments to promote economic growth or stable prices.
- By reducing fund rates, the massive unemployment rate is reduced, Its inflation rate also will be reduced. Its decline in the rate of the fund helps make lending expenditures low. These individuals would also borrow huge amounts of money to satisfy their inflation market demands. The Taylor rule's approximation could provide an accurate fiscal policy standard.
- In terms of short-lasting bond yields, long-term interest rate increases, and other asset values, one such expansionary fiscal policy forms private industry expectations often Unless interest rates are reduced, asset rates go up. These long-term plans help to reduce the impact on strategies and objectives and the report will develop predictions to help stop predicted rising inflation and contribute to the future interest rates decrease.
