Answer:
The correct answer is option b.
Explanation:
Shen is working in a country where the inflation rate is high.
He gets a salary every two weeks.
After receiving his salary he immediately goes out and buys all the goods he is going to need over the next two weeks.
He converts the remaining salary in a more stable currency.
He does this in order to prevent his salary from losing purchasing power.
This effort that he is making to prevent his real income from losing value is called the shoe-leather cost of inflation.
The shoe-leather cost can be defined as the cost of time and effort made to prevent the cash holdings from losing their value.
Because R&D initiatives are expected to yield a greater rate of return, businesses seek a huge quantity at a cheap cost.
<h3>What are the necessary finances?</h3>
To calculate your financial requirement, divide your anticipated family commitment by two and the cost of attendance (COA) for even a school (EFC). Although COA varies from university to university, your EFC does not change no matter which school you attend.
<h3>Which four necessities in terms of financial are there?</h3>
For the majority of Americans, job is the first step toward financial stability. People need revenue to meet expenditures and for budgetary considerations. They also must invest for the future, save cash for a rainy morning, borrow money to acquire assets, plus insure yourself against shocks.
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Answer:
The property would be given to the next available direct relation of his who happens to be his sister. This is because, most property are shared among siblings. Since Smith's sister is one of his sibling, she is entitled to receive the property.
Explanation:
Answer:
a. If dividends are annual and expected to be constant, what is the intrinsic value (fair price) of ABC stock?
P₀ = $0.26 / 12% = $2.16667 = $2.17
b. What is ABC's dividend yield?
$0.26 / $2.17 = 12%
c. From now on, assume that the dividend of 0.26 was a quarterly dividend. What is the quarterly discount rate?
12% / 4 = 3%
d. What is the intrinsic value if dividends are constant and quarterly?
P₀ = $0.26 / 3% = $8.66667 = $8.67
e. We now think that dividends will grow by 0.3% from quarter to quarter. The firm just paid the quarterly dividend of 0.26. What is the intrinsic value of ABC stock?
P₀ = ($0.26 x 1.003) / (3% - 0.3%) = $9.6585 = $9.66
f. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.3% thereafter. What is the intrinsic value?
Div₀ = $0.26
Div₁ = $0.273
Div₂ = $0.287
Div₃ = $0.301
Div₄ = $0.316
Div₅ = $0.317
terminal value in 4 quarters = $0.317 / (3% - 0.3%) = $11.74
P₀ = $0.273/1.03 + $0.287/1.03² + $0.301/1.03³ + $0.316/1.03⁴ + $11.74/1.03⁴ = $0.265 + $0.271 + $0.275 + $0.281 + $10.43 = $11.522
Explanation:
Negative implications of the Pygmalion Effect: Unjustified expectations end up becoming real. ... Secondary teachers have lower expectations to colored students and students from poor and disadvantaged backgrounds.
