Answer:
Instructions are below.
Explanation:
Giving the following information:
Future value= $11,000,000
Number of years= 2
To calculate the initial investment required, we need an interest rate. <u>We weren't provided with this information, however, I will provide the formula and an interest rate.</u>
i= 8% compounded annually.
To calculate the lump-sum, we need to use the following formula.
PV= FV/(1+i)^n
PV= 11,000,000/(1.08^2)
PV= $9,430,727.02
The company's equity cost of capital is 8.4%, and a stock is anticipated to perpetually pay $1.25 a share. In ten years, an investor can anticipate paying $14.88 for each share. correct option is (D)
P = D/R = 1.25/0.084 = $14.88
Since, the dividend paid by the company will always be $1.25, the price of stock the share will always remain the same, even after ten years
A security that denotes ownership of a portion of the issuing company is referred to as a stock, also known as equity. Shares, which are units of stock, entitle its owners to a percentage of the company's assets and income based on how many shares they possess.
The cornerstone of many individual investors' portfolios, stocks are mostly bought and sold on stock exchanges. Government rules aimed at shielding investors from dishonest tactics must be followed when trading stocks.
Learn more about stock here
brainly.com/question/28663581
#SPJ4
The complete question is
a stock is expected to pay $1.25 per share every year indefinitely and the equity cost of capital for the company is 8.4%. What price would an investor be expected to pay per share ten years in the future?
A) $37.20.
B) $29.76.
C) $22.32.
D) $14.88.
Answer:
The correct option is C,$25,000
Explanation:
In discharging a contract ,it is mandated that the parties should be restored back to their previous positions as much as possible,prior to entering into the agreement.
In other words,prior to paying Dora Clay Pots has a cash amount of $25,000 which has been parted with as a consideration for the online marketing campaign,hence Clay pots should be restored to its prior position of having at its disposal cash of $25,000.
Conclusively,the compensatory damages is the return of cash of $25,000.
Answer:
Gross Income is the answer!
Explanation:
Answer:
b. C
Explanation:
It is the rate at which the net present value of all cash flows will be zero. As we know that the higher the discount rate lower will be the present value. The benefit of Higher IRR is company would expect higher rate of return from that project.
Project A has an Internal rate of return(IRR) of 21%.
Project B an IRR of 7%
Project C and IRR of 31%
and Project D an IRR of 19%
Project C will be best because it has highest IRR.