Answer:
You should pay a stock price of $33.33
Explanation:
We can use the formula below to calculate the price per share that you would be willing to pay;
RRR=(EDP/SP)+EDGR
where;
RRR-required rate of return
EDP-expected dividend payments
SP-share price
EDGR-expected dividend growth rate
This can also be written as;
Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate
In our case;
RRR=12%=12/100=0.12
EDP=$2
SP=unknown
EDGR=6%=6/100=0.06
replacing;
0.12=(2/SP)+(0.06)
0.12-0.06=(2/SP)
0.06=(2/SP)
0.06 SP=2
SP=2/0.06
SP=33.33
You should pay a stock price of $33.33
Answer:
The correct answer is letter "A": If there is an error on your credit report, you are more likely to have higher interest rates or even get rejected for the loan altogether
Explanation:
Dealing with errors in your credit report is a disadvantage because financial institutions will have doubts about your credit history. In front of loan requests, banks are likely to increase the rate of interest they could charge you or even reject the loan at all because they will consider <em>the risk of lending you money is higher due to the inaccuracies on your credit report</em>.
Real Interest rate is the nominal interest rate adjusted for Inflation. It can be calculated using the following formula:
RR = (NR- IR)/(1+IR)
Where RR is real rate, NR is nominal rate and IR is inflation rate. In this problem, Nominal Rate NR = 11% and Inflation Rate IR is 4%. Therefore, Real rate would be:
RR = (0.11 -0.04)/(1+0.04)
RR = 6.73%
Therefore, real rate of return would be 6.73%.
Answer:
A
Explanation:
Monique is a sole proprietor
A sole proprietorship is a type of business that is owned by one person
Characteristics
1. it is owned by one person
2. the business has unlimited liability
3. the business has limited access to capital
4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies
5. the business is usually not separated from the owner
