Answer:
4.65%
Explanation:
Data provided in the question:
Amount borrowed = $18,000
Discount Interest rate = 4% = 0.04
Required compensating balance = 10%
Now,
Effective loan rate on Discount Loan with compensating balance is given as
⇒ [ ( Interest rate ) ÷ (1- interest %-Compensating balance%) ] × 100%
⇒ [ 4% ÷ ( 1 - 4% - 10%) ] × 100%
⇒ [ 0.04 ÷ ( 1 - 0.04 - 0.10 ) ] × 100%
⇒ [ 0.04 ÷ 0.86 ] × 100%
⇒ 4.65%
Answer:
$20.80 and $29.61
Explanation:
The computations are shown below:
Current price is
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $1.20 + $1.20 × 4%
= $1.20 + $0.048
= $1.248
So, the current price is
= $1.248 ÷ (10% - 4%)
= $20.80
Now the price in 10 years is
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $1.20 × 1.04^10
= $1.20 × 1.4802442849
= $1.7762931419
So, the price in 10 years is
= $1.7762931419 ÷ (10% - 4%)
= $29.61
They can simply ask their boss for a raise or just wait it out and soon enough you’ll get a raise.
The correct answer to the following question is Substitution.
Equity can be defined as the shares or stock that a company issues to the public to get the financing and these stocks represent ownership interest in the company.
Debt can be termed as the amount of money that one party borrows from other party and that has to be paid in future. Almost all companies borrow money from public, or another company or banks to expand their company.
When stocks or anything valuable are exchanged or replaced for one's existing debt , then we call this process Substitution .
Answer:
$1.804 ; $1.7856
Explanation:
The computation is shown below:
The formula is presented below:
= Initial forecast + a × (Actual demand of last month - initial forecast of last month)
For November, it would be
=$1.83 + 0.1 × ($1.57 - $1.83)
= $1.83 - 0.026
= $1.804
For December, it would be
=$1.804+ 0.1 × ($1.62 - $1.804)
= $1.804 - 0.0184
= $1.7856
