Answer:
the risk premium = return of the deposit - risk free deposit return
risk premium = 5.2% - 2.5% = 2.7% or $27 for a $1,000 CD
Besides the investment risk, Casey must also consider the inflation rate and taxes. The inflation rate lowers the real interest earned by Casey: real interest rate = nominal interest rate - inflation rate. And she must also find out how the return from the non-financial institution is taxed, if it can be taxed as capital gains or regular income.
Answer:
Intrinsic value of Stock C is 300
Explanation:
given data
expected pay dividend = $3
growth rate of dividends = 9%
stock C require a rate of return = 10%
stock D require a rate of return = 13%
solution
we get here intrinsic value by the DDM method
intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock ) .................1
intrinsic value = 
intrinsic value = 
intrinsic value = 300
so intrinsic value of Stock C is 300
Answer:
Explanation:
Current Forecast Horizon Terminal
Year ($ millions) 2017 2018 2019 2020 2021 Sales ........................................................$2,785 $3,838 $5,289 $7,288 $10,043 $10,244 ....................................................330 455 627 864 1,190 1,214NOA .........................................................533 735 1,012 1,395 1,922 1,961ROPI Model
NOPAT – [NOABeg× rDiscount
factor [1 / (1 × ] ...................0.88496 0.78315 0.69305 0.61332 Present value of horizon ................342 416 507 619 present value of horizon ........$1,884 Present value of terminal ...............5,375 .........................................................533 Total firm value ........................................$7,792 Less ..............(462) Firm equity value .....................................8,254 Shares outstanding (millions) ..................103.3 Stock value per share ..............................$ 79.90
Answer:
Nearly an equal number of consumers use mobile and online banking to pay bills because of the ease and convenience these methods afford them.
Explanation:
To hypothesize means to provide a possible explanation for something. So, a possible reason or explanation of why most customers prefer the online and mobile methods of making payments and receiving funds is that it is much easier for them.
Some of these easy benefits include;
1. They do not have to stand in long queues to pay through cheques.
2. They can process their transactions from any location and at any time.
3. There are fewer requirements needed to process transactions.
