Answer:
$739.72 ≈ 739.72
Explanation:
we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])
- fv = $1,000
- pmt = $1,000 x 7.25% x 1/2 = $36.25
- nper = 60
- rate = 10% / 2 = 5%
- present value = ?
=PV(5%,60,36.25,1000) = -739.72 since excel calculates the initial investment, it is always negative, so we just change the sign.
Answer:
D1 = $4.86
D2 = $5.25
D3 = $5.67
D4 = $6.12
D5 = $6.61
D6 = $6.85
Explanation:
Dividend paid by Indigo Ink Supply at year 0 = Do = $4.5
Growth rate for the first five years = 8%
Growth rate for the sixth year = 3.6%
The dividend paid out for the next six years are,
D1 = Do(1+ growth rate)
D1 = $4.5(1+8%) = $4.86
D2 = $4.86(1+8%) = $5.25
D3 = $5.25(1+8%) = $5.67
D4 = $5.67(1+8%) = $6.12
D5 = $6.12(1+8%) = $6.61
D6 = $6.61(1+3.6%) = $6.85
<span>A) 5.5%
A) rE = Div1 / P0 + g
0.1 = 0.045 + g, so g = 5.5%</span>
Answer:
True
Explanation:
i hope this works\ but if it's not then it will be false
The first thing you could do is get a lawyer. Other ways are going over the contract before signing it.
