Answer: $40
Explanation:
First find the required return using CAPM;
Required return = Riskfree rate + beta * (Market return - riskfree rate)
= 6% + 0.5 * (13% - 6%)
= 9.5%
Then use DDM to determine intrinsic value;
= Next dividend / (Required return - growth rate)
= 5 / (9.5% - (-3%))
= $40
The correct answer is a single payment loan.
This means that he will pawn his watch to a pawnbroker, who will pay him the entire sum immediately, without having to use monthly installments or something like that. A single payment loan refers to the payment of the entire principal sum at that particular moment when the loan is taken.
Answer:
As per MM proposition total capital would remain same.
which implies share price = (24-12)/2= $6 per share
Answer:Pinkney Journal $
Date
January 15
Land $ Building. Dr 100,000
Share capital. Cr. 100,000
Narration. Transfer of share for the purchase of land and building.
Explanation:
The firm will record the value of the land and building at the price of shares it has transferred for the purchase not withstanding the price of it's purchase by the seller nor the market fair value on purchase.
The payment of the price of the land & building with shares does not represents a new issue of shares but it's a transfer of share ownership from the firm to the seller and this will be reflected in the share register.
Answer: $3865.8
Explanation:
The formula to find the simple interest is given by :-
, where P is the initial amount deposited , r is the rate of interest in decimal and t is the time period in years.
Given : P= $1700 ; r= 9.8%=0.098 ; t=13 years
Then , the simple interest earned in 13 years will be :-
Now, the combined amount = P+I =$1700+$2165.8= $3865.8
Hence, the credit union would owe Heather $3865.8 in 13 years.
