Answer:
Option (e) is correct.
Explanation:
Given that,
Beta = 0.88
Expected dividend growth rate = 4.00% per year
T-bond rate = 5.25% (The treasury bonds are always the risk free rate)
Average annual future return on the market = 14.75%
Required rate of return:
= Risk free rate + Beta × (Market rate - Risk free rate)
= 5.25 + 0.88 × (14.75 - 5.25)
= 5.25 + 0.88 × 9.5
= 5.25 + 8.36
= 13.61%
Answer: Selling exports abroad at a lower price than the domestic price.
Explanation:
Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.
This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.
An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.
Answer:
The total amount was $4419.76
Explanation:
The 5% of $4000 is $200 so after a 2 year period added to the amount the original deposit of $4000 then A is the correct and closest equal amount.
Answer:
First, Miguel arrives at an estimate of the total returns that he wants from his investments.
Explanation:
Plato :)
Answer:
A) $1.82
Explanation:
the dividends discount model is used to determine the value of stock given the distributed dividends and the required rate of return:
current dividend $0.20 per stock
dividends year 1 = $0.23 per stock
dividends year 2 = $0.2645 per stock
dividends year 3 = $0.3042 per stock
dividends year 4 = $0.35 per stock
after year 4, we need to calculate the growing perpetuity = dividend / (return rate - growth rate) = $0.35 / (17.4% - 2.5%) = $0.35 / 14.9% = $2.35
now we must find the present value of the cash flows:
PV = $0.23/1.174 + $0.2645/1.174² + $0.3042/1.174³ + $0.35/1.174⁴ + $2.35/1.174⁵ = $0.1959 + $0.1919 + $0.188 + $0.1842 + $1.0537 = $1.82
