Compute the price of a share of stock that pays a $5 peryear dividend and that you expect to be able to sell inone year for $40, assuming you require a 5% return
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Compute the price of a share of stock that pays a $5 per
year dividend and that you expect to be able to sell in
one year for $40, assuming you require a 5% return
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- Calculate the value of a stock that is expected to pay a constant dividend of $1.05per year if the required return is 11%.Four years after the issue of a $10,000, 9.9% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 8.2% compounded semiannually. b. What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital (Click to select) of $["You are interested in buying a piece of real property that could be worth $313,000 in 15 years. Assuming that your money is worth 10.5%, how much will you be willing to pay for the property?"
- A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 6534 dollars. How much did he invest at each rate? Your answer is total in the account paying 6 percent interest is total in the account paying 10 percent interest isYour father invested a lump sum 24 years ago at 5.75 percent interest compounded monthly. Today, he gave you the proceeds of that investment which totaled $105,099.24. How much did your father originally invest? A. $15,929.47 B. $16,500.00 C. $17,444.86 D. $26,528.00 E. $27,470.75QUESTION 6 What is the net present value of receiving $250 in 5 years from now if the interest rate is 12%? 141.86 142.56 140.34 139.55
- Suppose Crystal Wilson wants to accumulate $1,000,000 by the time she retires in 40 years. If she earns 10% on her investments, how much must she invest each year in order to realize her goal?Lorenz curves also can be used to provide a relative measure of the distribution of the total assets of a country. Using data in a report by the economic committee of a certain country, an economist produced the following Lorenz curves for the distribution of total assets in the country in 1963 and 1983, shown below. f(x) = x10 Lorenz curve for 1963 g(x) = x13 Lorenz curve for 1983 Find the Gini index of income concentration for each Lorenz curve and interpret the results. .... What is the Gini index for 1963? (Round to three decimal places as needed.) What is the Gini index for 1983? (Round to three decimal places as needed.) Interpret your results. O A. Total assets were more equally distributed in 1963 O B. Total assets were more equally distributed in 1983 O c. Total assets were distributed the same in 1963 as in 1983.A stock had returns of 14 percent, 17 percent, 14 percent, 20 percent, 16 percent, and 2 percent over the last six years. What is the arithmetic return for the stock? Arithmetic return What is the geometric return for the stock? Geometric return
- Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $40,000 per year. About the same time, Emily inherited $62,000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 6 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $83,000 and total explicit costs of $41,000. a. What was Emily's accounting profit or loss for the year? Accounting profit $ 42,000 b. What was her economic profit or loss for the year? Economic Loss $ 7,6001) Using 12 percent simple interest per year, how much interest will be owed on a loan of $500 at the end of two years?Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $40,600 per year. About the same time, Emily inherited $65,000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 6 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $77,000 and total explicit costs of $30,000. a. What was Emily's accounting profit or loss for the year? Accounting (Click to select) $ b. What was her economic profit or loss for the year? Economic (Click to select)