The current value of a share of stock is $6.
calculate the current value of a share of stock, we need to determine the present value of all future dividends. we can use the dividend discount model (ddm) to calculate this value.
calculate the present value of the dividends during the high-growth period (years 2-4) using the formula for the present value of a growing perpetuity:
pv = d / (r - g)
where pv is the present value, d is the dividend, r is the required rate of return, and g is the growth rate.
pv = $3.50 / (0.07 - 0.15)
pv = $3.50 / (-0.08)
pv = -$43.75
pv = d / r
pv = $3.50 / 0.07
pv = $50.00
current value = pv of high-growth period + pv of steady growth period
current value = -$43.75 + $50.00
current value = $6.25 25. none of the given s match this value.
Learn more about discount here:
https://brainly.com/question/31870453
#SPJ11
Which of these is an example of perfect competition?
a. many small companies selling food grains
b. some big companies selling computers
c. few companies selling aerated cold drinks
d. many international companies selling bicycles
Answer:
a. many small companies selling food grains
Explanation:
Perfect competition is a market including many small companies selling the same product to promote healthy competition.
Answer:
A.) many small companies selling food grains
Explanation:
Plato
I will mark you as brainliest!!
What is stock turnover?
A. How long customers have own the products they've purchased
B. How quickly inventory sells
C. How much it costs to keep inventory
D. How the stock market affects inventory
Answer:
d.how the stock market affects inventory
Explanation:
a stock turnover is the rate at which a company's goods are sold and replaced. I hope that helped <3
stock movement Effects of the stock market on inventory Thus option (D) is correct.
What is the stock price?A share price is the price of a single share of a company's salable equity shares. In layman's terms, the stock price is the largest amount of money someone is willing to pay for the stock or the lowest amount for which it can be purchased.
Stock market Analysts in economics and financial theory utilize random walk techniques to model the behavior of asset prices, particularly share prices on stock exchanges. This technique is founded on the assumption that investors operate rationally and without bias, and that they evaluate the value of an asset at any given time based on future expectations.
Therefore, Thus option (D) is correct.
Learn more about stock prices here:
https://brainly.com/question/15021152
#SPJ2
Question in attachment
which action will trigger a penalty tax on premature distribution from a modified endowment contract
A 10percent annual tax penalty is normally applied to MEC withdrawals if they are made before the recipient reaches the age of 5912. Only the gains are subject to the 10%, but only because they are removed first.
A customized endowment contract premature distribution is what it sounds like.Withdrawals from non-qualified annuities are taxed similarly to those made under the MEC. A 10% premature withdrawal penalty could be imposed for withdrawals made before the age of 59 1/2. The death benefits of MEC policies are tax-free, much as those of conventional life insurance policies.
A altered endowment contract is initiated by what?Simply put, a federal life insurance regulation will be triggered by paying too many policy premiums too rapidly. It will be determined that your insurance policy is a "modified endowment contract" (MEC), and the tax advantages of money life insurance policies might be curtailed.
Make sure they comprehended it properly.
To know more about MEC Visit:
https://brainly.com/question/14366748
#SPJ4
How much is $175 to be received in exactly one year worth to you today if the interest rate is 10%
The present value of $175 to be received in exactly one year with an interest rate of 10% is approximately $159.09.
the present value of $175 to be received in one year with an interest rate of 10%, we can use the formula for present value:
Present Value = Future Value / (1 + Interest Rate)^n
In this case, the future value is $175, the interest rate is 10%, and the time period is one year (n = 1).
Putting in the values, we have:
Present Value = $175 / (1 + 0.10)^1\
implifying the expression inside the parentheses:
Present Value = $175 / (1.10)^1
Calculating the exponent:
Present Value = $175 / 1.10
Dividing $175 by 1.10:
Present Value = $159.09
Therefore, the present value of $175 to be received in exactly one year with an interest rate of 10% is approximately $159.09.
Learn more about value with the given link,
https://brainly.com/question/25528419
#SPJ11
Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point
When a buyer purchase with cash and the terms are FOB Shipping Point, the two accounts used to recognize shipping charges for the buyer are Freight-In or Transportation-In, Cash or Accounts Payable.
1. Freight-In or Transportation-In: This account is used to record the cost of shipping or transportation charges incurred by the buyer. It is classified as a cost or expense account and is typically included as part of the cost of inventory. The amount recorded in this account represents the transportation costs associated with acquiring the goods and is added to the cost of the purchased goods.
2. Cash or Accounts Payable: The buyer would record the payment made for the shipping charges either through the Cash account if the buyer pays immediately or through the Accounts Payable account if the buyer defers payment to a later date. If paid in cash, the Cash account is debited (reduced), indicating the outflow of cash. If purchased on credit, the Accounts Payable account is credited, representing the amount owed to the shipping company.
These accounts reflect the financial transactions related to shipping charges incurred by the buyer in a purchase transaction. The Freight-In account captures the cost of shipping as part of the inventory cost, and the Cash or Accounts Payable account records the payment made for those charges.
Learn more about purchase here:
https://brainly.com/question/31035675
#SPJ11
What does making a good decision mean?? How can I make a good decision?
Answer:
A good decision is one that is made deliberately and thoughtfully, considers and includes all relevant factors, is consistent with the individual’s philosophy and values, and can be explained clearly to significant others.
Ways to make good decision:
Set Aside Time to Reflect on Your MistakesStop Thinking About the ProblemFrame Your Problems In a Different WayIdentify the Risks You TakeTake Note of Your OverconfidenceTalk to Yourself Like a Trusted FriendLabel Your EmotionsAcknowledge Your ShortcutsConsider the Opposite6. A small insurance fund has liabilities of £5 million due in 12 years time and £8 million in 20 years time. The manager of the fund has sold the assets previously held and is creating a new portfolio by investing in the zero-coupon bond market. The manager decides to purchase two zero-coupon bounds, one paying £X million in 10 years time and the other paying £Y million in 25 years time.
(a) If the current interest rate is 6% per annum effective, find the values of X and Y to two decimal places such that the first two conditions of Redington’s immunisation theory are satisfied, i.e. equal present value and equal discounted mean term (DMT). [8 marks]
(b) Write down the third condition of Redington’s immunisation theory. [1 mark]
(c) The insurance fund decides to protect itself from interest rate changes by applying the Redington’s immunisation theory. Discuss three problems that the insurance fund may face. [3 marks]
[Total: 12 marks]
(a) To satisfy the first two conditions of Redington's immunisation theory, we need to find the values of X and Y such that the present value and the discounted mean term (DMT) are equal.
The present value of liabilities is the sum of the present values of the individual liabilities. Using the given interest rate of 6% per annum effective, we can calculate the present values as follows:
PV1 = £5 million / (1 + 0.06)^12 ≈ £3.129 million
PV2 = £8 million / (1 + 0.06)^20 ≈ £4.674 million
The DMT is the weighted average of the terms of the liabilities, weighted by their present values. Since there are only two liabilities, the DMT is the average of the two terms weighted by their respective present values.
DMT = (12 * PV1 + 20 * PV2) / (PV1 + PV2) ≈ (12 * £3.129 million + 20 * £4.674 million) / (£3.129 million + £4.674 million) ≈ 15.18 years
To satisfy the first condition, the present values of the zero-coupon bonds should sum up to the total present value of liabilities:
£X million / (1 + 0.06)^10 + £Y million / (1 + 0.06)^25 = £3.129 million + £4.674 million
To satisfy the second condition, the DMT of the zero-coupon bonds should be equal to the DMT of the liabilities:
(10 * £X million + 25 * £Y million) / (£X million + £Y million) = 15.18 years
Using these equations, we can solve for X and Y to two decimal places.
(b) The third condition of Redington's immunisation theory states that the assets' duration should equal the liabilities' duration. Duration measures the sensitivity of the value of the portfolio to changes in interest rates. By matching the duration of assets and liabilities, the portfolio becomes more immunized against interest rate risk.
(c) Three problems that the insurance fund may face when applying Redington's immunisation theory are:
1. Interest rate risk: Immunization theory assumes that interest rates remain constant. However, if interest rates change significantly, it can lead to a mismatch between the duration of assets and liabilities, undermining the effectiveness of immunization.
2. Reinvestment risk: When the insurance fund receives coupon payments or maturing bonds, it needs to reinvest those funds at prevailing interest rates. If interest rates decline, the fund may face challenges in finding suitable investments that match the desired duration and yield.
3. Liquidity risk: Immunization involves locking in the cash flows of assets to match the liabilities. This may limit the fund's flexibility and ability to respond to unexpected liquidity needs or changes in investment opportunities. It may also result in a lack of diversification if the fund is restricted to specific bond maturities.
These problems highlight the challenges and uncertainties associated with implementing immunization strategies in a dynamic and changing interest rate environment.
To know more about Immunization visit-
brainly.com/question/32715052
#SPJ11
What are 3 disadvantages of a centrally planned economy?
The 3 disadvantages of a centrally planned economy - Lack of efficiency, Lack of incentives and Limited choices.
The following are some of the major downsides of this form of economy:
Inefficiency in resource allocation: Because government employees may lack the knowledge or incentives to make the optimal judgments for the economy, central planning can lead to inefficiencies in resource allocation.
In a centrally planned economy, the government owns and controls all means of production, and individuals do not have the same incentives to work hard or be inventive as they do in a market-based economy.
Limited options: The government selects what commodities and services are produced and in what quantities in a centrally planned economy.
For such more question on Economy:
https://brainly.com/question/1106682
#SPJ4
______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
Match each type of tax with an example of its use.
category 1:
Property Tax
Capitol gains tax
Personal income tax
category 2:
□ 1% charged on the value of a home.
□ 20% charged on wages earned.
□ 2% charged on profits from selling a house.
Answer:
Hmm What do you. mean?
Explanation:
What are three strategies that you can use to make better financial decisions?
(Personal and Family Finance class)
Investments, Savings, and Expenses are the three basic strategies, which can help a person take better and efficient financial decisions on a personal level.
What are better financial decisions?The strategies to choose the investments in different assets and debt classes will enable a person to increase his chances of gaining better financial returns. The amount of money, a person decides to save for any future requirements will help him out of the financial crises that may take place in his life. The strategy on where to spend and where not to spend will help a person have more disposable income to fulfill the financial needs in the future.
Hence, the strategies for taking better financial decisions are as aforementioned.
Learn more about financial decision here:
https://brainly.com/question/19502030
#SPJ1
For an economy as a whole, income must equal expenditure because.
Income must equal expenditure because for an economy because :
Every transaction has a buyer and seller.Every dollar of spending by some buyer is a dollar of income for some seller.What is Aggregate income?Aggregate income is a form of GDP whereby income is equal to Consumption expenditure including net profits. It refers to the value of all income that suppliers of production factors receives over a specified period.
In an economy, income must equal expenditure because for every transaction, there must be a buyer and a seller. This is because every economy must have this cycle so that there will be balanced receipts and payment.
Learn more about Aggregate income here :https://brainly.com/question/23850586
Why is it important for people to be careful to manage their debts?
Answer:
A debt management company can help by analysing your situation and giving you good advice on the best debt solution to suit your needs. A debt consolidation loan may also be a good way of arranging your debt and making it easier to pay back
Explanation:
Hope this helped Mark BRAINLIEST!!!
this federal act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done.
The federal act that requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done is the Davis-Bacon Act.
This act was passed in 1931 and requires contractors to pay their employees the prevailing wage for their trade or occupation in the area where the work is being performed. The act was later amended in 1935 to include provisions that protect workers from being underpaid or exploited.
The Davis-Bacon Act is designed to ensure that contractors on federally-funded projects pay their workers a fair wage, which helps to prevent the exploitation of workers and maintain a level playing field for contractors bidding on federal projects.
The prevailing wage is determined by the Department of Labor based on the wages paid to workers in the same occupation in the same geographic area. This ensures that workers are paid a fair wage that is consistent with the local labor market.
In summary, the Davis-Bacon Act requires contractors with federal contracts worth over $2,000 to pay their workers at least the prevailing wage for their trade or occupation in the area where the work is being performed.
This act helps to protect workers from being underpaid or exploited and ensures that contractors bidding on federal projects are competing on a level playing field.
To know more about federal act refer here
https://brainly.com/question/12396203#
#SPJ11
Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction?
Either the buyer or the seller can reject dual agency, even if the brokers agree to it.
Even if the buyer's and seller's brokers agree to dual agency, either the buyer or the seller may reject the arrangement. This is because dual agency creates a conflict of interest, and both parties have the right to have an agent who is working solely in their best interests.
If either the buyer or the seller rejects dual agency, the transaction will need to be handled by two separate agents. This may make the transaction more complex and time-consuming, but it will ensure that both parties have the best possible representation.
Here are some of the reasons why a buyer or seller might reject dual agency:
They may feel that the agent cannot represent their interests fairly if they are also representing the other party.
They may be concerned that the agent will not disclose all of the information that is relevant to the transaction.
They may simply prefer to have an agent who is working solely in their best interests.
If you are considering dual agency, it is important to understand the risks involved and to be sure that you are comfortable with the arrangement. You should also discuss the matter with your agent to make sure that they understand your concerns and are committed to representing your interests fairly.
To learn more about dual agency: https://brainly.com/question/29900302
#SPJ11
What aspect of real estate involves giving courses or seminars to real estate professionals and the general public? a) development b) lending c) education d) appraisal
The education aspect of real estate involves giving courses or seminars to real estate professionals and the general public.
What is the education aspect of real estate?The relates to the courses and other educational activities in real estate that can also include study in closely related areas such as land economics, and public seminar for the people.
Hence, the education aspect of real estate involves giving courses or seminars to real estate professionals and the general public.
Therefore, the Option C is correct.
Read more about real estate
brainly.com/question/1534216
#SPJ1
An investor does not wish to attempt to time the market, so she invests $300 each month into the GEMCO Growth Fund. Over the past 5 months, her purchase prices have been $10, $12, $15, $20, and $25. On the basis of this information, if she were to stop investing at this point and sell her shares 2 months from now when the NAV is $15 per share and the public offering price is $15.79, it would be CORRECT to state that her A) average cost per share was $16.40 B) proceeds were $15.79 per share C) cost basis for tax purposes was $14.71 D) realized loss would be $1.40 per share
Answer:
It would be 4(67)+ 56-
Explanation:
Under the __________ Clause of the U.S. Constitution, treaties become part of the law of the land.
Hey There!!~
Your answer choice is Supremacy Clause...
Hope This Helps!!~
By ♡~Itsbrazts♡~
external cost of expanding or building airport
Answer:
External costs may involve or interact and be impacted by the environment, society, or economic travesty, especially ones that were uncalled-for.
External costs depend on many things, including area, time, and space, but will mostly be a few hundred thousand U.S.D.
When it comes to relationships in the workplace be sure to _____.
ask personal questions
join the same social groups
remain professional
swap phone numbers
Answer:
the answer is remain professional.
Question # 5
Multiple Choice
When it comes to relationships in the workplace be sure to _____.
ask personal questions
join the same social groups
swap phone numbers
remain professionalMultiple Choice
Which of the following illustrates why corn was such a precious commodity to Native Americans?
The kernels were easy to transport.
It was easy to plant and grew quickly.
o One kernel could produce one to two ears.
It could be grown in any type of soil.
Comparing actual net income to budgeted net income is often done to evaluate the manager of a(n) ______________ center.
Comparing actual net income to budgeted net income is often done to evaluate the manager of a profit center. A profit center is a department or business unit that generates revenue and incurs costs, and is therefore responsible for its own profitability.
By comparing actual net income to budgeted net income, the manager of a profit center can assess whether the department is meeting its financial targets and contributing to the overall success of the organization.
This information can also be used to identify areas where the profit center can improve its performance and increase profitability. Overall, evaluating the manager of a profit center through comparing actual net income to budgeted net income is an important tool for assessing the effectiveness of the department's leadership and financial management.
To know more about profitability,refer to the link:
https://brainly.com/question/15036999#
#SPJ11
many vietnamese refugees who have settled in the gulf coast work in what primary sector industry?
Many Vietnamese refugees who have settled on the Gulf Coast work in the primary sector industry of shrimping and fishing.
These industries have been a traditional source of income for many Gulf Coast residents and the Vietnamese community has integrated themselves into this workforce, bringing their own unique skills and knowledge.
The reason why Texas was a good resettlement site for Vietnamese Refugees was because of the state's warm climate, it had continuously expanding economy, and its location near the ocean, since the Vietnamese had a fishing and shrimping background, they decided that Texas was a good resettlement location.
Additionally, some Vietnamese refugees have started their own businesses in the seafood industry, further contributing to the local economy.
Read more about Vietnamese refugees at https://brainly.com/question/6992284
#SPJ11
According to the Fisher equation, the nominal interest rate is equal to the: rate of inflation a. b. real interest rate minus the rate of inflation real interest rate plus the rate of inflation c. rate of unemployment d. real interest rate plus short-run economic fluctuations e.
According to the Fisher equation, the real interest rate is given by option the nominal interest rate minus the rate of inflation. Option E is the correct answer.
The Fisher equation states that the real interest rate is equal to the nominal interest rate minus the expected or actual rate of inflation. This equation helps to distinguish between the nominal interest rate (the rate quoted by banks or lenders) and the real interest rate (the rate adjusted for inflation).
By subtracting the inflation rate from the nominal interest rate, we obtain the real interest rate, which represents the purchasing power of borrowed or invested money.
Learn more about the real interest rate at
https://brainly.com/question/32530068
#SPJ4
The question is -
According to the Fisher equation, the real interest rate is given by:
a.zero
b.the nominal interest rate plus the rate of inflation
c.the nominal interest rate minus the rate of unemployment
d.the rate of economic growth
e.the nominal interest rate minus the rate of inflation
Which of the following is an intangible noncurrent asset?
Answer:
Trademark
Explanation:
The computer network used for trading securities is the NYSE.
TRUE or FALSE
The computer network used for trading securities is the NYSE is false.
A computer network refers to a digital telecommunications network that enables nodes to share information, resources, and data. The networks can have a range of forms, including local area networks (LANs), wide area networks (WANs), and metropolitan area networks (MANs).
It is the world's leading equities market for trading shares of public firms. Its trading platform, also known as the NYSE, facilitates auctions and open outcry trading of securities for sale. It's an American stock exchange that is owned by Intercontinental Exchange (ICE).The statement, "The computer network used for trading securities is the NYSE," is False.
The reason is that the NYSE (New York Stock Exchange) is a trading platform for securities, and it uses a network infrastructure to carry out transactions between investors and companies.
To know more about The New York Stock Exchange (NYSE):
https://brainly.com/question/30068121
#SPJ11
analyse the impact of an enterprise using break even analysis to make business decisions
Answer:
Using break-even analysis in your feed and grain business can help you understand and examine the profit drivers of your business. It is a very useful tool that can help you understand how much you need to sell to cover your costs and how pricing, cost, and volume changes impact these needed sales.
contract manufacturing is when a firm pays foreign manufacturers to produce its product. the foreign manufacturer places the domestic company's label on the products.
The statement is generally true. Contract manufacturing is a business arrangement in which a firm hires foreign manufacturers to produce its products, and the foreign manufacturer may place the domestic company's label on the products.
Contract manufacturing is a strategy used by companies to outsource the production of their goods to third-party manufacturers, often located in foreign countries. In this arrangement, the domestic company contracts with a foreign manufacturer to produce its products according to specified requirements. The domestic company typically provides the necessary design, specifications, and quality standards for the products. The foreign manufacturer, acting as a subcontractor, utilizes its manufacturing capabilities and resources to produce the goods on behalf of the domestic company.
In some cases, the products may be labeled with the domestic company's branding or label before they are shipped to the company for distribution. Contract manufacturing offers several advantages to companies, such as cost savings, access to specialized expertise or technologies, and flexibility in production capacity. It allows the company to focus on other core business activities while leveraging the capabilities of the contract manufacturer. In conclusion, the statement accurately describes the concept of contract manufacturing, where a firm pays foreign manufacturers to produce its products, and the foreign manufacturer may place the domestic company's label on the products.
Learn more about foreign manufacturer here:
https://brainly.com/question/28499742
#SPJ11
Now that Amazon does collect sales tax in most states, what other loopholes has Amazon found to evade other taxes?
(In depth response)
Another area in which Amazon has found another tax loophole in order to evade taxes is:
They make use of foreign based companies to receive payments from customers in another country.What is a Tax Loophole?This refers to the legal clauses which the rich people and corporations exploit in order to evade paying tax or paying as much as other people.
One tax loophole which is being used by Amazon to evade tax is the use of foreign based companies to receive payments from customers in another country and bypass HMRC.
Read more about tax loopholes here:
https://brainly.com/question/10248969