Answer:
= $93.64
Explanation:
Price = D1/ (r-g)
D1 = Dividend next year =D0(1+g)
D1 = 2(1.03) =2.06
g; growth rate = 3%
r= required return (Use CAPM to find it) as shown below;
CAPM ;r = risk free + beta(MRP)
beta = 40% *1 ( since market beta is equal to 1)
therefore, Beta = 0.4
CAPM; r = 2% + (0.4*8%) = 5.2%
Next, use the rate of return i.e 5.2% , to calculate the price of the stock;
Price = D1/ (r-g)
= 2.06 / (5.2% -3%)
Price = $93.64
Answer:
$24.38
Explanation:
The computation of the one share of worth is shown below:
= Eight-year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend for eight-year
s would be
= Annual dividend × (1 + growth rate)^number of years
= $1.18 × (1 + 3.25%)^8
= $1.18 × 1.291577535
= $1.524061492
The other items rate would remain the same
Now placing these values to the formula above
So, the price would equal to
= $1.524061492 ÷ (9.5% - 3.25%)
= $24.38
Answer:a. Good governance
Explanation:
The WHO 5 action areas are defined as follows: • Global governance and collaboration • good governance •-The health sector • Monitoring •Community participation in policymaking and implementation
Answer:
$5,300
Explanation:
A customer buys 1 FLB Oct 50 call at 3 and she exercises the option to buy 100 shares
= 3 × 100 shares
= $300
The customer bought 100 shares at a price of $50
= 50 × 100 shares
= $5,000
Therefore, the cost basis of the 100 shares can be calculated as follows
= $300 + $5,000
= $5,300
Hence the cost basis of the 100 shares is $5,300