Answer:
price = $47.82
Explanation:
Find the present value of each dividend at the required rate of return and sum them up to get the current price;
PV = FV /(1+r)^n
PV(D1) = 3.55/ (1.099^1) = 3.2302
PV(D2) = 4.65/ (1.099^2) = 3.8500
PV(D3) = 5.85 / (1.099^3) = 4.4072
PV(Price at t=4) = 53 / (1.099^4) = 36.3316
Price = 3.2302+2.9392+4.4072+36.3316
= 47.81897
Therefore, price = $47.82
Answer:
The amount of rent expense that will be reported on the Year 1 income statement is $1,800
.
The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.
Explanation:
Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.
The duration of the payment is 12 months, hence
Monthly amortization = $7,200/12 = $600
Rent expense for year 1 = $600 × 3 = $1,800
The ending balance in the prepaid rent account will be
= $7,200 - $1,800
= $5,400
This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.
Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
Answer:
a. new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs
Explanation:
Corporate social responsibility is defined as integration of social and environmental concerns in the business activities of an organisation.
The business entity is accountable to its stakeholders and the public.
In the given scenario the wind turbines generate enough power to serve the campus buildings and to sell to local business establishments.
However enrollment keeps going up because cost of the new turbines need to be covered.
This demonstrates new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs
Answer:
$1,056.07
Explanation:
Given:
Amount spent each month = $83.42
Interest rate, r = 1.8% = 0.018
Time, n = 3 years
Now,
The total amount collected at the end of the year = $83.42 × 12 = $1001.04
The value of amount deposited in the bank after 3 years will be
Future value = Present value × ( 1 + r )ⁿ
on substituting the respective values, we have
Future value = $1001.04 × ( 1 + 0.018 )³
or
Future value = $1,056.07
Hence,
The money he could have at the end of 3 more years will be $1,056.07
