Answer:
2041 shares
Explanation:
Maximum amount for investment = $ 50 000 / 70 % = $ 71428.571
maximum number of shares = $ 71428.571 / $ 35 = 2040.812 approx 2041 shares
This is not a good idea as stocks are volatile.
Explanation:
One must never invest a lot of money in only one stock as the stocks are wont to change over time and gain or lose value.
If one wants a long term investment with at least some amount of safety they must be investing in stocks that grow consistently and then to break up the capital in small chunks and then invest them.
All of these can be invested in different shares in the market and then the shares would be more safe.
Even if one or two shares fall the others will be safe.
Answer:
PMT x {[(1 + r)^n – 1]/r}
Explanation:
The formula for calculation the future value of an ordinary annuity is given as :
PMT x {[(1 + r)^n – 1]/r} ;
Where ;
PMT = Payment amount ; r = discount rate
n = number of payments
For ordinary annuity, payment are made at the end of each period as opposed payment made at the beginning of the period for annuity due.
Answer:
Supply and Demand
Explanation:
Although there are many factors which are given below:
1. Location of the real property
2. Supply and demand
3. The rate of interest
4. Population size
5. Market trends of property, etc
But the primary driver is supply and demand because if the demand of the property rise than the supply, the price of real property is rising whereas if the supply of the property is rise than the demand, the price of real property is declining
Answer:
The company's worth is $24,420,000 if it is financed entirely by equity
Explanation:
The value of the company if financed entirely by equity is the perpetual cash flows that can be derived from the company using the required rate of return on the company's un-levered equity at 15%.
Sales $18,500,000
Variable costs(70%*$18,500,000) ($12,950,000)
EBIT $5,550,000
tax at 34%(34%*$5,550,000) ($1,887,000)
Net income $3,663,000.
Company's worth= $3,663,000/15%
=$24,420,000
