Answer:
Answer for question :
The recent dividend payout by IBM was $3.00. IBM's dividends are expected to grow about 6.5% per year. If your required rate of return is 17%. What is the expected stock price two years from now. Round the answer to the nearest integer " is as explained below.
Explanation:
1. the expected stock price two years from now = 3 * 1.065^3/(0.17 - 0.065)
the expected stock price two years from now = 34.51
2. FV = 0, N = 8, PMT = 288, rate = 4%
use PV funciton in Excel
value at time 0 = 1939.03
Answer: Option (C) is correct.
Explanation:
In a competitive market conditions, there are large number of buyers and sellers. All the firms in this market condition are selling identical products or we can say that all the goods are perfect substitutes.
Suppose if the firms earning negative economic profit then they continue to operate until the price of their goods is greater than the average variable cost and they shut down their production if the price of their goods is lower than the average variable cost.
A firm can experience normal profit, loss or supernormal in the short run.
But competitive firms cannot decreases their output to minimizes their losses.
Answer:
Explanation:
The $35,000 that will be needed in 3 years is a future value (FV).
This is an ordinary annuity, and it is asking for the recurring payment (PMT)
Using a financial calculator, input the following;
Future value; FV = 35,000
Total duration ; N = 3*12 = 36 months
Interest rate; I = 3.4%/12 = 0.2833%
One time present cashflow; PV = 0
then compute recurring payment ; CPT PMT =924.86
The real exchange rate is 1 dollar = 2 Argentine pesos
The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:
- 1 Dollar is equivalent to 4 Argentine pesos
However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:
- 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.
In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.
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