NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.27 a share. The following dividends will be $.32, $.47, and $.77 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.3 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 12 percent

Answers

Answer 1

Answer:

The maximum hat should be paid for the stock today is $6.48

Explanation:

The price of the stock today can be calculated using the dividend discount model. It bases the price or value of a stock on the present value of the expected future dividends from the stock.

The price of the stock today is,

P0 = 0.27/(1+0.12)  +  0.32/(1+0.12)^2  +  0.47/(1+0.12)^3  + 0.77/(1+0.12)^4 

[ (0.77 * (1+0.023)) / (0.12 - 0.023) ] / (1+0.12)^4

P0 = $6.48092 rounded off to $6.48


Related Questions

What is a determinant of demand that would cause demand to increase?

Answers

Answer:

Increase in income

Increase in price of substitutes

Change in taste

Explanation:

If income increases, the demand for a good rises as the amount of disposable income increases,

A substitute good is a good that can be used in place of another good. e.g. pen and pencils. If the price of a substitute (e.g. pens) increases, it becomes more expensive. Consumers would shift to the demanding pencils. As a result the demand for pencils would increase

A change in taste. For example, if an individual prefers pencils to pens. he would demand more of pencils and less of pend. As a result, the demand for pencils would increase

Which of the outcomes in are most appealing to you? Are you more attracted to extrinsic outcomes or intrinsic outcomes?

Answers

Extrinsic outcomes are external rewards such as money, status, or recognition that come from achieving a goal. These outcomes are appealing to some individuals because they provide tangible benefits and can be easily measured by others.


On the other hand, intrinsic outcomes are internal rewards such as personal satisfaction, a sense of accomplishment, or personal growth that come from achieving a goal. These outcomes are appealing to some individuals because they provide a deeper sense of fulfillment and can be more meaningful in the long-term.

Ultimately, whether someone is more attracted to extrinsic or intrinsic outcomes depends on their personal values and goals. Some people may prioritize external rewards and seek to maximize their income or social status, while others may prioritize personal growth and seek to achieve goals that align with their passions and values.

It is important to strike a balance between both types of outcomes and to find a sense of purpose and satisfaction in the goals that we pursue.

For more such questions on goal visit:

https://brainly.com/question/25534066

#SPJ11

Help me ASAP. 50 Points.
How is social and domestic policy created and implemented? How involved should govemment be in solving various problems in our country? That is an enduring issue in the United States. For each of the examples, decide whether the hypothetical problem should be solved by (a) government, (b) government and the private sector acting together, or (c) the private sector (business and/or charity). Give your reasons for each. •A few ships have crashed near a harbor because it lacks a working lighthouse Americans' health is declining due to poor nutrition. Many high school graduates do not have the skills needed to be successful in the workforce . Sometimes, farmers or ranchers lose an entire crop or herd to bad weather. Such a loss can bankrupt a small farm. An alarming number of people have been injured while using chainsaws • Home prices fell sharply in some cities and many homeowners could not afford to pay their mortgages. • Fast-food workers complain that their pay-generally the federal minimum wage-is not enough to support their families • A business cannot market its products effectively because it does not have current information about the demographics of the community

Help me ASAP. 50 Points.How is social and domestic policy created and implemented? How involved should

Answers

Answer:

Explanation:

Jamie Kerr is an hourly employee of Noonan Company located in Los Angeles. This week, Kerr had to travel to the company's regional office in Santa Fe. He left Sunday at noon and arrived in Santa Fe at 3:30 P.M. During the week, he worked his normal 40 hours in the Santa Fe office (Monday through Friday-9 A.M. to 5 P.M.). In addition, he attended the company's 3½-hour work training session on Wednesday evening. Kerr's hourly rate of pay is $26.90 per hour.

Round the interim computations to two decimal places and use the rounded answers in subsequent computations. Round the final answers to the nearest cent.

a. Kerr's overtime earnings for the week are

b. Kerr's total earnings for the week are

Answers

a) Kerr received $164.78 in weekly overtime pay. Individuals who work for a company and receive compensation are called employees. Under the heading "Income from salaries," earned salaries are taxable.

How does income relate to salary?

For the purposes of income tax, the amount that an employee receives from his employer in any of the following forms during a fiscal year will be considered "Salary": Wages: Wages are a set amount of money that an employer pays its employees in exchange for their work.

In the Netherlands, what is the "30 rule"?

Employees recruited from outside the Netherlands to temporarily work here can take advantage of the 30% facility. They are exempt from paying tax on up to 30% of their salary provided they meet the conditions for the 30% facility.

To learn more about income tax here:

https://brainly.com/question/17075354

#SPJ1

what is the difference between hire purchase and differed payment?​

Answers

Explanation:

In deferred payment, the borrower will agreed to pay certain amount of money on the promised date. ... In hire purchase, the purchaser will be getting the belongings without paying the full price of the item. The purchasers would make down payment and the balance is paid in installments.

Explanation:

Hire purchase is a system by which one pays for a thing in regular installments while having the use of it but deferred payments are payments that are completely or partially postponed for financial reasons

what are the five economic lssues??​

Answers

Answer:

Economic issues facing the world economy, as well as regions and countries, include prospects for growth, inflation, energy and the environment, inequality, labor issues, emerging markets, and the impact of new technologies.

What will be the cost of capital, after tax, for a company with 60% debt and 40% equity split if they have the following:
9% cost of debt
6% cost of equity
30% tax rate

Answers

The cost of capital for the company given its cost of debt, equity and tax rate is  6.18%.

What is the cost of capital?

The cost of capital is the rate at which a company gets finances to run its businesses. The cost of capital can be determined by calculating the weighted average cost of capital.

Weighted average cost of capital = (cost of equity x weight of equity) + [cost of debt x weight of debt x (1 - t)]

Where: t = tax rate

Weighted average cost of capital = (0.4 x 6%) + [0.6 x 9 x (1 - 0.3)]

Weighted average cost of capital = 2,4% + 3.78 = 6.18%

To learn more about cost of capital, please check: https://brainly.com/question/29103041

#SPJ1

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $640 were declared at the end of the year, and 630 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,520 in cash (for a total at the end of the year of 800 shares). These effects are included below: 130 Catena's Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,550 Accounts receivable 2,240 Interest receivable Prepaid insurance 1,640 Long-term notes receivable 2,820 Equipment 15,100 Accumulated depreciation $ 2,940 Accounts payable 2,240 Dividends payable 640 Accrued expenses payable 3,800 Income taxes payable 2,520 Unearned rent revenue 320 Common Stock (800 shares) 80 Additional paid-in capital 3,500 Retained earnings 2,330 Sales revenue 37, 350 Interest revenue 150 Rent revenue 600 Wages expense 18,100 Depreciation expense 1,789 Utilities expense 340 Insurance expense 750 Rent expense 9,300 Income tax expense 2,720 Total $ 56,470 $ 56,470​

Answers

The preparation of the classified balance sheet for Catena's Marketing Company is as follows:

Catena's Marketing Company

Classified Balance Sheet

At the end of the current year

Assets:

Current assets:

Cash                                                    $ 1,550

Accounts receivable                            2,240

Interest receivable                                   121

Prepaid insurance                                1,640

Total current assets                                        $5,551

Long-term assets:

Long-term notes receivable            $2,820

Equipment                           $15,100

Accumulated depreciation  (2,940) 12,160

Total long-term assets                                 $14,980

Total assets                                                    $20,531

Liabilities and Equity:

Liabilities:

Current Liabilities:

Accounts payable                                          $2,240

Dividends payable                                              640

Accrued expenses payable                            3,800

Income taxes payable                                     2,520

Unearned rent revenue                                     320

Total current liabilities                                $9,520

Equity:

Common Stock (800 shares)            $80

Additional paid-in capital               3,500

Retained earnings                           7,431    $11,011

Total liabilities and equity                         $20,531

Preparing the Classified Balance Sheet:

To prepare the classified Balance Sheet of Catena's Marketing Company, we must first determine the net income and the ending retained earnings as follows:

Income Statement

For the current year

Sales revenue                                 $37, 350

Interest revenue                                      150

Rent revenue                                         600

Total revenue                                 $38,100

Expenses:

Wages expense                 18,100

Depreciation expense        1,789

Utilities expense                   340

Insurance expense              750

Rent expense                   9,300

Income tax expense        2,720      32,999

Net income                                       $5,101

Statement of Retained Earnings

For the current year

Retained earnings (previous year)  $2,330

Net income                                          5,101

Retained earnings (current year)   $7,431

Note that the effect of the cash dividends declared was already included in the Retained earnings of $2,530.

Data and Calculations:

Catena's Marketing Company

Adjusted Trial Balance

End of the Current Year        Debit      Credit

Cash                                      $ 1,550

Accounts receivable              2,240

Interest receivable                     121

Prepaid insurance                  1,640

Long-term notes receivable 2,820

Equipment                             15,100

Accumulated depreciation                 $ 2,940

Accounts payable                                  2,240

Dividends payable                                    640

Accrued expenses payable                  3,800

Income taxes payable                           2,520

Unearned rent revenue                           320

Common Stock (800 shares)                    80

Additional paid-in capital                     3,500

Retained earnings                                2,330

Sales revenue                                   37, 350

Interest revenue                                      150

Rent revenue                                         600

Wages expense                 18,100

Depreciation expense        1,789

Utilities expense                   340

Insurance expense              750

Rent expense                   9,300

Income tax expense        2,720

Total                            $ 56,470   $ 56,470​

Required:

Prepare a classified Balance Sheet at the end of the current year.

Learn more about preparing classified balance sheet at https://brainly.com/question/15843155

Medicare and Social Security are paid through which type of federal tax?
A sales tax
B. excise tax
C. payroll tax
D. corporate income tax

Answers

Answer is payroll tax

Answer: C. payroll tax

Explanation: got it correct on ed2020

ADUWERE is fast growing profitable company. The company is situated in Iringa, Tanzania. Its sales are expected to grow about three times from TZS 360 million in 2022-2023 to TZS 1,100 million in 2024-2025. The company is considering of commissioning a 35 km pipeline between two areas to carry gas to TANESCO. The project will cost TZS 250 million. The pipeline will have a capacity of 2.5 MMSCM. The company will enter into a contract with TANESCO to supply gas. The revenue from the sale to TANESCO is expected to be TZS 120 million per annum. The pipeline will also be used for transportation of LNG to other users in the area. This is expected to bring additional revenue of TZS 80 million per annum. The company management considers the useful life of the pipeline to be 20 years. The financial manager estimates cash profit to sales ratio of 20% per annum for the first 12 years of the project’s operations and 17% per annum for the remaining life of the project. The project has no salvage value. The project being in a backward area is exempt from paying any taxes. The company requires a rate of return of 15% from the project. Required: 1. What is the project’s payback and return on investment (ROI) 2. Compute project’s NPV and IRR Should the project be accepted? Why? ​

Answers

1. Therefore, the ROI for the project is:ROI = (TZS 1,660 million / TZS 250 million) x 100% = 664%The ROI of the project is 664%.

2. The project should be accepted as the NPV is positive and the IRR is higher than the required rate of return of 15%.

1. Payback period is defined as the duration within which the initial investment made in the project is recovered by the cash inflows that it generates. It is an important capital budgeting tool for measuring the length of time a project will take to recoup the initial investment. Payback period = Initial investment ÷ Net annual cash inflows

The initial investment made by ADUWERE is TZS 250 million.

The net annual cash inflows are calculated as:

Net annual cash inflow = Revenue from TANESCO + Additional revenue from LNG – Operating costs – Maintenance costs

Revenue from TANESCO = TZS 120 million.

Additional revenue from LNG = TZS 80 million

Operating costs = 0.20 * TZS 360 million = TZS 72 million

Maintenance costs = (250/2000)*TZS 360 million = TZS 45 million

Net annual cash inflow = TZS 83 million.

Therefore, the payback period of the project is:Payback period = TZS 250 million ÷ TZS 83 million = 3.01 years. The project has a payback period of 3.01 years. This means that the initial investment made by ADUWERE in the project will be recovered within 3.01 years. Since the useful life of the pipeline is 20 years, this indicates that the project is acceptable.

ROI = (Total net cash inflow / Initial investment) x 100%The total net cash inflow for the project is calculated as:

Total net cash inflow = Net annual cash inflow x Useful life

Total net cash inflow = TZS 83 million x 20 = TZS 1,660 million

Therefore, the ROI for the project is:ROI = (TZS 1,660 million / TZS 250 million) x 100% = 664%.

The ROI of the project is 664%. This indicates that the project is acceptable as the ROI is higher than the required rate of return of 15%.2. Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV = ∑ (Cash inflows / (1 + r)t) – Initial investment

Where,r = Required rate of returnt = Time periodThe NPV of the project is:NPV = (TZS 83 million / (1 + 0.15)1) + (TZS 83 million / (1 + 0.15)2) + … + (TZS 83 million / (1 + 0.15)20) – TZS 250 millionNPV = TZS 505.6 millionIRR or Internal Rate of Return is defined as the rate at which the net present value of the cash inflows is equal to the net present value of cash outflows.

In other words, it is the discount rate that equates the present value of cash inflows with the present value of cash outflows. The IRR of the project can be determined by trial and error method or by using Excel’s IRR function.Using Excel’s IRR function, we get IRR = 47.95%The project should be accepted as the NPV is positive and the IRR is higher than the required rate of return of 15%.

For more such questions on project

https://brainly.com/question/14935763

#SPJ8

What are cash flow financing activities

Answers

Answer: Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.

Explanation:

One way in which you lose financially when buying a new car is​

One way in which you lose financially when buying a new car is

Answers

A I’m not doing this but pretty sure A

Personal financial planning is the process of creating and achieving financial goals.
OA. True
OB. False

Answers

It is true
Because with planning for your life even if financial you can reach the financial goal
It’s True for Personal financial planning

In production and inventory control, it is important to know whether demand is independent or dependent because the distinction:
a. defines the content of products
b. determines the selection of appropriate replenishment methods
c. conveys what materials are unique or common to products
d. determines needed product quantities

Answers

Option b is correct. In production and inventory control, it is important to know whether demand is independent or dependent, the distinction determines the selection of appropriate replenishment methods.

What is inventory replenishment ?

Maintaining client satisfaction levels high, maintaining adequate inventory levels is essential. However, using manual or antiquated techniques makes it difficult. Inventory accuracy rates for American retailers are generally 63%. Another 34% of businesses dispatch orders after they should have because of stock problems. To do this, firms must put in place guidelines (or procedures) that allow them to determine when a product needs replenishing (before it runs out). These guidelines and procedures are also utilized to decide how much stock to reorder and how much back stock to add to your current inventory. Utilizing demand forecasts, inventory analysis, and additional supply chain variables like in-stock status and product velocity, effective inventory replenishment requires careful planning.

To know more about Inventory replenishment visit:                brainly.com/question/29031628

#SPJ4

Question 6 of 10
What was the main purpose of the Sarbanes-Oxley Act?
A. To increase competition in the accounting industry
B. To increase tax revenue for the government
O C. To create jobs for accountants
D. To protect investors from fraud and false financial reporting

Answers

The main purpose of the Sarbanes-Oxley Act is to protect investors from fraud and false financial reporting (option D).

What is financial reporting?

Financial reporting is described as a process through which the financial statements of an organization are issued. It is a process that includes communication as well as documentation of the financial performance and financial activities of an organization that is carried out for a specific period.  

The Sarbanes-Oxley Act is a law in the US, and the main purpose of this act is to protect investors. The disclosure made through financial reporting is made accurate and reliable through the implementation of this act.

It can be concluded that the main purpose of the Sarbanes-Oxley Act is to protect investors from fraud and false financial reporting (option D).

To know more about financial reporting, check this link:

https://brainly.com/question/26240841

#SPJ13

You are an outside project management professional who has been hired by Mainstreet to lead its new Wingra Point Live Work development. You are given an approved vendor list and access to the shared drive containing project templates. You are also introduced to the company’s standard processes and procedures and the submission and approval protocols. What type of project inputs do these elements represent? Project collateral Operational Process Assets (OPAs) EEFs Enterprise assets

Answers

These elements represent organizational process assets, which are documents, reports, and plans that are developed within an organization and used to guide project decisions and activities.

What type of project inputs do these elements represent?

Generally, Project management is the process of leading a team to achieve specific goals and objectives within a defined timeline and budget. It involves defining project scope, setting goals and milestones, identifying tasks and responsibilities, tracking progress, and making adjustments as needed to ensure successful completion. Key skills in project management include leadership, organization, communication, problem-solving, and time management.

These assets include policies, procedures, guidelines, templates, and historical information that can be used to inform project management decisions and activities.

Read more about project management

https://brainly.com/question/15404120

#SPJ1

Why do so many new products fail? Give your opinion

Answers

Answer:

BECAUSE THEY SUCK

No jk

Explanation:

About 30 to 45% of new products fail to deliver any meaningful financial return. This typically happens due to a number of reasons, from poor product / market fit, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities.

The cost may be too much so people won’t want to buy. It could be because they haven’t reached out to the right audience or just no one has really noticed the product.

If a product is faulty, what is the responsibility of the retailer who sold it?
A. Replace the product or refund the purchase price
B. Provide the consumer with contact information for the
manufacturer
C. Do nothing because only the manufacturer has responsibility
D. Call the manufacturer on behalf of the consumer

Answers

A is your answer

Hope this helps have an excellent day!

W02_06.
is the popular name for a free-market economy in which business people make most of the
decisions about what products to produce, how many workers to hire, and what prices to charge for goods
and services.
Select one:
a. Communism
b. Marginalism
ec. Capitalism
d. Socialism

Answers

Answer:

it is capitalism

Explanation:

This is so becauae , capitalism is a free market economy where the individual business people do most in the economy by deciding what to produce , workers to hire etc than the government

If a deposit correctly recorded by the bank for $800 is incorrectly recorded in the company's books for $600, how should this error be treated on the bank reconciliation?

Answers

i think the answer is 24567

Free Cash Flow

100

Growth rate

2%

Tax Rate

1%

Cost of Capital

5%

Debt-to-total value

50%

Given the data in the above, what is the terminal value of the business (using the growing perpetuity formula)?

Answers

Answer:

Explanation:

Terminal value of business Formula = FCF (1+g)/(WACC- g)

Where:

FCF= current free cash flow = 100  

g= Growth rate = 2%  

WACC = Weighted average cost of capital = Cost of capital = 5%

Terminal Value of the business= FCF (1+g)/(WACC- g)

Terminal Value of the business= 100 (1+2%)/(5%- 2%)

Terminal Value of the business= 3,400

Caleb wants to start a business in the health and wellness industry, but before taking the time and effort to create this business, he should know how this business sector has recently performed and where it is headed. Basically, Caleb needs to educate himself on _____.
Group of answer choices

industry trends

marketing materials

tax practices

Human Resources

_____ accountants prepare financial information for people who are both inside and outside the company to assess if the company is performing well.
Group of answer choices

Inspection

Quarterly

Financial

Managerial

If Cameron prepares information—such as reports on costs and operations—for the use of employees only, what type of accountant is he?
Group of answer choices

Managerial

Financial

Tax-specific

Educational

Jonathan and his partner Drew understand they need to create a document to address stipulations for working with their vendors who supply building materials and home decor staging products for their home show. While drafting a contract, what key principles should Jonathan and Drew remember?
Group of answer choices

Professional representation; legal structure

Exchange of value; offer and acceptance

Legal structure; exchange of value

Offer and acceptance; professional representation

Answers

In order to know how the business has performed recently, Caleb should educate himself on industry trends.

Financial accountants prepare financial information for people who are both inside and outside the company.

If Cameron prepares information for employees only, the type of accountant he is Managerial accountant.

The key principles that Jonathan and Drew should remember are Exchange of value; offer and acceptance.

What should Caleb do?

It would be best if Caleb was knowledgeable about the business he wants to go into so that he can know if he can make a profit of a loss from the industry. He should therefore try to learn about the trends in the industry.

What type of accountants are there?

Financial accountants are those who prepare the financial statements of a company according to known accounting standards such as IFRS and U.S. GAAP because these statements will be used by people both inside and out of the company.

Management accountants on the other hand, make reports that help employees make decisions about the company and are not meant for external stakeholders.

Find out more on management accounting at https://brainly.com/question/21597572

#SPJ1

Discussion Questions
15-1. This chapter discusses four important issues
that will shape compensation professionals?
work for years to come. Which one of these
issues stands to create the greatest uncertainty
for compensation professionals? Explain
your answer.

Answers

The question is about the Compensation of professionals and its issues.

The most important issue out of the four discussed is the workforce diversity, this creates a great uncertainty in compensating the professionals.

Diversity in professionals create an environment where a group of people are working more and hard while the other group of people does not work much hours but still the compensation is on a similar level and sometimes when this compensation is varied with the group it is highly regarded as the inequality.

Learn more at https://brainly.com/question/25802715

What can HR professionals do to mitigate concerns about pregnancy discrimination in the workplace? What does the law say companies need to do to avoid violating the rights of pregnant employees?

Answers

With our combined efforts as one HR, there is no cause we cannot influence. Knowing the law and interacting with expectant women are the greatest ways to stop pregnancy prejudice.

Employers place a high premium on discouraging pregnancy prejudice. The Pregnancy Discrimination Act of 1978's new EEOC rules have made it a particularly controversial topic in today's society. The best thing you can do to defend yourself in court is to train all managers or supervisors, but especially those who are directly in charge of supervising workers.

When you learn that a coworker is pregnant, you must show her respect and use caution. You should merely express gratitude to the worker for informing you. Offer pregnancy prejudice your support and assure her that, if necessary, you would make accommodation's that are reasonable in nature for her.

Never indicate that an employee's pregnancy is a burden on the company, and neither should your supervisors. Before approaching a pregnant employee, ask a member pregnancy prejudice of your human resources team any questions you may have about what to ask or not ask.

Learn more about pregnancy prejudice here

https://brainly.com/question/17164279

#SPJ9

At the 3 compartment sink the temperature of sanitizer water should be

Answers

Answer:

75F-120F (24C-49C)

Explanation:

This range is recommended to ensure effective sanitation.

What should you do to streamline the purchasing process once the customer approves an estimate?

Answers

You should copy it to a purchase order.

I hope this helps!!!

afford that. (shouldnt, cant)
11. Circle the collective noun that best fits in the sentence.
1. The ( classroom/herd ) of students read the directions on th
2. Sailing around the (flock / chain of islands, the crew of sa
3. Bears fish in the river as the clouds / runs ) of salmon swa
4.
I ate a (plate / flock) of rice.
5. Running late, I ran up ( flights/pods ) of stairs in record ti
6. Looking up at the sky, I had a glimpse of the packs / gala
7. After the holidays, we had (colonies / heaps) of trash.
Grade 08 - English
(4)
Copying and imita
publishers law!​

Answers

Answer:

Classroom

Chain of Islands

Runs

Plate

Flights

Gala

Heaps

Explanation:

Bob Eberhart wants to retire in 10 years. He’s heard that he needs either $1 million or 10 to 12 times his current income of $60,000 saved. He doesn’t have either. His goal now is to save, save, save. Saving can double his nest egg if the stock market continues to deliver 7% annually in this decade. He sold his second car and is saving $500 per month.

Answers

Saving can double his nest egg if the over-the-counter stock market continues to deliver 7% yearly in this decade. 22 shares

variety of stocks that may be bought = Month savings / NAV

quantity of shares that can be purchased = 500 / 22.74

variety of stocks that can be bought = 21.99 stocks or 22 stocks

The stock market is where investors buy and promote shares of companies. it's fixed of exchanges in which groups issue stocks and other securities for trading. it is usually  (OTC) marketplaces in which investors trade securities without delay with every different (over the counter via an alternate).

Stock markets are venues in which customers and sellers meet to alternate equity stocks of public groups. inventory markets are components of an unfastened-market economic system over-the-counter fact over the counter over the country permit democratized get entry to investor trading and trade of capital.

Learn more about stock market here: https://brainly.com/question/18124452

#SPJ1

Hi, i need help for this assignment from "Essentials of Investments", can you help me? I have to deliver by midnight!! URGENT

Hi, i need help for this assignment from "Essentials of Investments", can you help me? I have to deliver

Answers

60% of the client's investment should be in the risky portfolio and 40% should be in T-bills.

What is the portfolio?

a. To find the proportion y, we can use the following formula:

0.17 = y(0.18) + (1-y)(0.055)

where y is the proportion of the investment in the risky portfolio.

Simplifying and solving for y, we get:

y = (0.17 - 0.055) / (0.18 - 0.055) = 0.60 or 60%

Therefore, 60% of the client's investment should be in the risky portfolio and 40% should be in T-bills.

b. To find the investment proportions in each security, we can multiply the overall investment proportions by the proportion invested in the risky portfolio.

Investment in T-bills: 40%

Investment in Stock A: 0.32 x 0.60 = 0.192 or 19.2%

Investment in Stock B: 0.36 x 0.60 = 0.216 or 21.6%

Investment in Stock C: 0.32 x 0.60 = 0.192 or 19.2%

Therefore, the client's investment proportions in the three stocks and in T-bills are:

T-Bills: 40%Stock A: 19.2%Stock B: 21.6%Stock C: 19.2%

Read more about portfolio  here:

https://brainly.com/question/25929259

#SPJ1



Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%.

Your risky portfolio includes the following investments in the given proportions:

Stock A 32%

Stock B  36 %

Stock C 32%

Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 17%.

Required:

a. What is the proportion y? (Round your answer to 1 decimal place.)

Proportion y      ---------------%

b. What are your client's investment proportions in your three stocks and in T-bills? (Round your intermediate calculations and final answers to 2 decimal places.)

Security            Investment Proportions

T-Bills    --- ----%

Stock A-----------%

Stock B-----------%

Stock C--------%

Scientific management approach has lost its relevance. How might today's
organization use it?
Why do you think managers have difficulty delegating?

Answers

Answer:

syntific mamagement loss it relevance its relevs today it will might today it will not lost revalance

Other Questions
Bankruptcy should never be used as a strategy. can be an effective type of retrenchment strategy. should only be used for small, private firms. should only be used for large firms. should be used only when one is legally forced to do so. How is thermal energy generated? Refer to Plastic hardness Problem 1.22. a. Estimate the change in the mean hardness when the elapsed time increases by one hour. Use a 99 percent confidence interval. Interpret your interval estimate. Most business owners display a combination of risk aversion and creative passion when establishing their companies". Appraise the key characteristics in entrepreneurial thinking, which is frequently drawn to opportunity, innovation, and the development of new value in very risky environmentsYour explanation should include the following aspects:IntroductionThe definition of the key conceptsAppraise FIVE (5) key differences in entrepreneurial thinking with relevant examples The number of hours children worked in the early 1800s was limited.O TrueFalse 1. When the male sex cells, or Type your answer here.a pea plant join with the female sex cells, orType text here.fromof another pea plant, a new organismbegins to form. This is called Type text here.Type text here.the pistil of another plant.is when pollen from a plant lands on help no good at maths Give the advantages and disadvantages of nationalism and military preparedness. If P NP then all problems in NP require exponential time.TrueFalse T/F: Under a token economy, youths only receive a token punishment for their transgressions. A box has 16 candies.12 red and 4 yellow.If you were picking candies from the box without looking.How many candies would you have to pick up to be certain to find two of the same colour In an essay form discuss the importance of following the steps in academic writing when writing an essay Find a model for simple harmonic motion if the position at T=0 is 0 , the amplitude is 3 centimeters, and the period is 2 seconds What is a real number Choose a method you prefer to solve for a system of linear equations.2x + 4y = -42x-y=6 The integumentary system only consists of your skin.A) TrueB) False How do authors use words and phrases to move the emotions, thoughts, and actions of readers?. Plz answer me will mark as brainliest This rsum format focuses on both the skills and the work experience of the applicant: a. Chronological b. Functional c. Skills d. Combination Please select the best answer from the choices provided A B C D. You could distinguish a granum from a crista because the granum, but not the crista, would __________.