The percentage of the money given to practitioner is called "commission"
Answer:
The correct answer is:
90% and 6%
Explanation:
From its peak in 1929 to the trough in December 1932, the Dow Jones Industrial Average fell by 90%. The Baa-U.S. Treasury spread was about 2% at the beginning of 1929. By December 1932, the Dow Jones Industrial Average reached a low, and the spread had increased to 6%.
The Dow Jones Industrial Average is the Index created by Charles Henry Dow, an economist and journalist, who worked for the famous journal The Wall Street as editor. There, he created the scale in order to measure year by year the development or behavior of the 30 largest public limited companies in the United States.
The value of each company's shares of stock
Red: $91.25
Yellow:$52.14
Blue: $36.50
Step 1
The constant dividend growth model, which is written as
Pt = Dt (1 + g)/(R - g)
<h3>Step2</h3>
Therefore, the current stock price for each company is:
Price of the red stock is $3.65/(0.08 -0.04) = $91.25.
Price of the yellow stock is $3.65/(0.11 -0.04) = $52.14.
Price of the blue stock is $3.65/(0.14 -0.04) = 36.50.
The stock price falls as the needed return rises. A greater discount rate reduces the present value of cash flows, which is a function of the time value of money. The stock price can be significantly affected by even slight changes in the needed return, which is another crucial point to remember.
learn more about stock price here <u>brainly.com/question/24196193</u>
#SPJ4
Answer: The bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
Explanation:
1) In order to find out the number of bonds issued we need to divide 750,000 (Total ) by 1000(Face value of each bond).Total number of bonds issues therefore are 750.
2) A 12 percent convertible bond means that the bond pays a coupon of 120 ( 0.12 * 1000) every year.
3) Each bond is convertible into 25 shares , which means if one bond is converted into common stock, the bond holder can earn $1750. We calculate this number by multiplying the number of shares which is 25 into the current market price of the shares which is 70.
4) Also the company is offering an extra $500 per bond for converting it which means (500/25) an extra $20 per share.
5) So in total the bondholder by converting a bond and selling the shares he gets by converting it can earn $2250 per bond which they bought for a $1000 and gives them 120$ of interest every year.
6) SO to conclude the bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
In a country with a high uncertainty avoidance majority of people have an increased level of anxiety about uncertainty and ambiguity
