The answer for the question is the letter B) advanced graphics
Answer:
The maximum that should be paid for a share of this stock today is $13.53.
Explanation:
The price of a company's stock which pays a constant dividend through out can be calculated using the zero growth model of the Dividend discount model (DDM). The formula for price of the stock today under DDM's zero growth model is,
P0 = D / r
P0 = 1.84 / 0.136
P0 = $13.529 rounded off to $13.53
Answer:
Most common automobile tires are within a few inches of 25″ in diameter, so they cover 2π × 25″ ≈ 157″, or about 13 feet in a complete revolution. So to cover a mile, which is 5280 feet, they'd have to rotate 5280/13 ≈ 406 times.
Explanation:
Answer:
It usually makes sense for a firm to consolidate its productive activities in one country
Explanation:
There are several trade trade theories. Successful trade theories believe in unrestricted free trade, which does not allow government policies to exist.
Trade Theories includes;
1. Classic theories
2. Modern theories
Answer:
The question is missing some details,however find the complete question with the underlined figures being the missing ones below:
Assume that short-term rate, r1 = 6%, and that the expected market rates
<u>E(r 12 ) = 7 % and E(r 23 )</u> = 9 % . Also assume that the unbiased expectations theory holds such that the forward rates are identical to expected spot rates.
a. What should be the current price of a 3-year, $1000 bond with a 12% coupon rate? Assume annual coupon payments.
b. What is the yield-to-maturity for this bond?
a.The current price of the bond is $ 1,082.87
b.The yield to maturity is 8.74%
Explanation:
Find detailed computations of the bond price and yield to maturity in the spreadsheet attached.
Please note that in calculating the present of the bond i.e current price ,the rate changes from year to year as given in the question.