Answer:
Option B) 3 or 4; 2 or fewer
Explanation:
A high quality factor will not meet 3 or 4 and low quality factor will not meet 1 or 0 so option A, C and D are incorrect.
The correct option is B. 3 or 4; 2 or fewer as a high quality factor will meet three or four of the AQCD criteria; a low quality factor will meet two or fewer of the AQCD critieria.
Question
The question is incomplete. The complete question is given as follows:
You consider buying a share of stock. The stock is expected to pay a dividend of $1.50 next year, and dividends are expected to grow by 5% per year forever. What is the stock price now if the stock's beta is 1.1, rf is 6%, and E[rm] = 16%.
Answer
Stock price = $12.5
Explanation:
Using the dividend valuation model, the value of a stock can be determined using this model:
Price = D(1+g)/(r-g)
D- dividend payable now, g- growth rate in dividend, r-return on equity
Return on equity
Re= Rf + β(Rm -Rf)
Rf- risk-free rate, Rm - Return on market portfolio, β- Beta factor
To determine the Stock price we follow the steps below
Step 1
Determine the cost of equity
r = 6% + 1.1 *(16%-6%)
= 17%
Step 2
Determine the stock price
Stock price = 1.50/(0.17-0.05)
= $12.5
Stock price = $12.5
Note
D*(1+g) = Dividend next year. And this has been given as $1.50. So there is no need to apply the growth rate.
Answer:
Return on investment = -0.07215 or -7.215%
Explanation:
The rate of return or percent return on the investment can be calculated by deducting the initial cost of the investment from the current value of the investment and dividing it by the initial cost.
The return provided by the investment can be calculated by adding the returns provided in form of dividend and capital gains both. Thus, the return can be calculated as follows,
Total dividend = 1.25 * 200 = $250
Total selling value = 35.4 * 200 = $7080
Total value = 250 + 7080 = $7330
Return on investment = (7330 - 7900) / 7900 = -0.07215 or -7.215%
The dollar wage to be paid in the third year based on the labor contract is $17.95 per hour.
First-year wage per hour = $15
Increase in real wage in the second year = 2%
Increase in real wage in the third year = 2%
First year's CPI = 1.00
Second year's CPI = 1.09
Third year's CPI = 1.15
The Consumer Price Index (CPI) measures the weighted average prices of a basket of consumer goods and services in the United States, considering its general economic inflation. The labor contract raises the real wage by 2% in the second and third years. The CPI of year three is applied in computing the real wage to account for the effect of inflation.
Thus, the dollar wage that must be paid in the third year based on the labor contract is $17.95 per hour ($15 x 1.02 x 1.02 x 1.15).
Learn more about the CPI, inflation, and the real wage at brainly.com/question/24802187
Answer:
$17.9469
Explanation:
Calculation for what dollar wage must be paid in the third year
Since the first year is tend to be the base year in which the real wage and nominal wage are both $15 per hour in that year.
The real wage is suppose to increase by 2 percent in the second year which means that the real wage in year two will be $15.30 ($15 * 1.02) per hour.
In a situation where the real wage was supposed to also increase by 2 percent in the third year, this means that the real wage in year three will be $15.606 ($15.3 * 1.02) per hour.
Therefore In order for us to find the nominal wage in third year , we have to index the real wage in order for it to adjust for inflation. Thus the nominal wage in third year will be $17.9469($15.606 * 1.15).
Therefore what dollar wage must be paid in the third year will be $17.9469
b. Coaches make suggestions to clients rather than elicit ideas.
c. Coaches clarify an individual's psychological contract.
d. Coaching is typically a special investment in top-level managers.
Answer:
b. coached make suggestions to clients rather than elicit ideas.
Coaches clarify an individual's psychological contract.
Explanation:
A true statement about coaching according to the options given would be option c: 'Coaches clarify an individual's psychological contract.' This specific line of action within coaching entails that coaches help clients clarify their professional roles, duties, and expectations, which can also indirectly lead to mental clarity.
As for the other options, they each possess some inaccuracies. Option a: 'Coaching should never be carried out in groups,' is incorrect because group coaching is indeed a common practice. Option b: 'Coaches make suggestions to clients rather than elicit ideas,' is inaccurate due to coaches often encouraging clients to develop their thoughts and solutions. Lastly, option d, 'Coaching is typically a special investment in top-level managers,' comprises a limited viewpoint since coaching is applicable to employees of all levels.
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Answer: Option D
Explanation: Enterprise zones are established by the government with the objective of development and economic growth in the local neighborhood.
The investors are attracted to make their business centers or production units in such areas by giving them incentives such as tax exemptions or other such benefits.
These are made usually in under developed areas. In countries like China and India, these areas are called special economic zones.
Answer:
9.41%
Explanation:
Wiley United has a beta of 1
The market risk premium 11.5%
= 11.5/100
=0.115
Risk free rate is 2.3%
= 2.3/100
= 0.023
Therefore the expected rate of return can be calculated as follows
Expected rate of return= Risk free rate+beta(market return-risk free rate)
= 0.023+1(0.115-0.023)
= 1.023(0.092)
= 0.0941×100
=9.41%
Hence the expected return on the stock is 9.41%