Answer:
SF7.37
Explanation:
PV of cash flow is calculated using the formula
1-(1+r)^-n/r=1-(1-0.15)^5/0.15=1-(0.75)^5/0.15=1-0.237/0.15=5.085
So pv=5.085×4.4=SF
20.3385million
Using interest parity
1+ic/1+ib =Fo/So
Counter country is US while home country is in
swiss
1+0.05/1.04=fo/1.09
Fo=1.09×1.05/1.04=1.1
So expected PV=20.3385×1.1=SF22.37235million
Profit=23.37235-15=SF7.37
Answer:
The price per share of this stock is $13.20
Explanation:
Using the dividend discount model, we can calculate the price per share today of this stock. The DDM values a stock based on the present value of the expected future dividends of the stock discounted using the required rate of return on the stock. The price o=per share today for this stock is,
P0 = 0.18 * (1+1) / (1+0.1024) + 0.18 * (1+1)^2 / (1+0.1024)^2 +
0.18 * (1+1)^3 / (1+0.1024)^3 + 1.25 / (1+0.1024)^4 + 1.25 / (1+0.1024)^5 +
(1.60 / 0.1024) / (1+0.1024)^5
P0 = $13.20
Answer:
Option B. Demand conditions
Explanation:
The demand conditioning is the domestic demand of the product that forms greater impact on the demand and innovation of the product in its domestic market. This great domestic demand of Fuji film products stipulated greater innovation which not only differentiated the product but also increased the demand in other markets like US and Europe.
This increased Demand conditions enabled the company to gain competitive advantage.
Answer:
Demand Increase = Supply Increase : No change in price, quantity increases
Demand Increase > Supply Increase: Price increase, quantity increase
Demand Increase < Supply Increase : Price decrease, quantity increase
Explanation:
Markets are at equilibrium where market demand = market supply. And, upward sloping supply curve intersects with downward sloping demand curve.
If both demand & supply of dog treats increase, the effect on change in price & quantity will depend on their relative magnitude
- If increase in demand = Increase in Supply : Both the curves shift equivalently rightwards. At new equilibrium - there is no change in price, as demand increase is fulfilled by supply increase. The equilibrium quantity increases
- If increase in demand > Increase in Supply : Demand curve shifts more rightwards than supply curve. This creates excess demand & competition among buyers increase the new equilibrium price. The equilibrium quantity also increases.
- If increase in demand < Increase in Supply : Supply curve shifts more rightwards than demand curve. This creates excess supply & competition among sellers reduce the new equilibrium price. The new equilibrium quantity increases.
