Answer:
<em>For the 2 year treasury securities it was 7%, and for a 3 year treasury securities it was 7.33%</em>
Explanation:
<em>From the example, </em>
<em>The real risk rate of interest is= 4%</em>
<em>The inflation expectation of this year=2%</em>
<em>Inflation expected for the next 2 years=4%</em>
<em>Maximum risk premium=0</em>
<em>Therefore</em>
Rt= r* + (Inflation/ year)
Rt2= 4 + (2 + 4 / 2) = 7%
<em>Rt3= 4 + (2 + 4 / 3) = 7.33% </em>
Answer:
a. 19,048
b. 2.1
c. $21
d. Before $2
After $2.1
e. Explanation of tax implication is below
Explanation:
a. Number of shares = Dividend per share × Number of shares outstanding ÷ cost per share
= 1 × 400,000 ÷ $21
= 19,048
b. Earning per share after repurchase = earnings ÷ (shares before-shares outstanding)
= $800,000 ÷ (400,000-19,048)
= 2.1
c. Market Price = Earning per share Price × Earning
= 2.1 × 10
= $21
d. Earning per share before = Earnings ÷ Before shares
= $800,000 ÷ 400,000
= $2
Earning per share after repurchase = $2.1
After share repurchase the earning per share has increased.
e) Price increased 21 dollars in share repurchased. The price remain constant in dividend payout the amount but additional 1 dollar in dividend the investors gains. If dividend is lesser than tax on capital gain then it will become drawback over collect dividend and vice versa.
Answer:
The correct answer is B. The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development.
Explanation:
The planned unit developtment is a type of possession where individuals actually own the building or Unit in which they live but there are common areas that are jointly owned with the other members of the development or association. Unlike a Condominium, where individuals actually own the airspace of their unit, but common buildings and areas are jointly owned with others in a development or association.
Answer:
Rare
Explanation:
VRIO Analysis is an analytical technique for the evaluation of company's resources and thus the competitive advantage. VRIO comes from the initials of the evaluation dimensions: Value, Rareness, Imitability, Organization.
A resource is rare simply if it is not widely possessed by other competitors. When a firm has valuable resources that are rare in the industry, they are in a position of competitive advantage over firms that do not have the resource.
Answer:
0.75
Explanation:
P(no lifting) = 0.4
P(moderate lifting) = 0.5
p(heavy lifting) = 0.2
P(Claim | no lifting) = 0.05
P(Claim | moderate lifting) = 0.08
P(Claim | heavy lifting) = 0.2
<u>Using BAYE Theorem</u>
P(no lifting claim) = P(Claim | no lifting)*P(no lift) / P(Claim)
P(Claim) = (Claim | no lifting)*P(no lifting) + P(Claim | moderate lifting)*P(moderate lifting) + P(Claim | heavy lifting)*p(heavy lifting)
P(Claim) = (0.05)*(0.4) + (0.08)*(0.5) + (0.2)*(0.1)
P(Claim) = 0.08
P(no lifting claim) = (0.05)*(0.4) / 0.08
P(no lifting claim) = 0.25
P(Heavy or moderate lifting | Claim) = 1 - 0.25
P(Heavy or moderate lifting | Claim) = 0.75