Nelson, Inc., has an odd dividend policy. The company has just paid a dividend of $4 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a return of 12 percent on the company’s stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer 1

The approximately amount paid per share is approximately equal to  $721.58 for a share of the stock today.

Starting value of dividend per share = $4

Increase in value of dividend per share = $6

Require return = 12 percent

To determine the present value of the stock,

Calculate the present value of the future dividends and the present value of the stock price at the end of the fifth year.

The dividends for the next five years will increase by $6 per share each year, starting from $4 per share.

The future dividends will be as follows,

Year 1,

$4 + $6 = $10

Year 2,

$4 + 2($6) = $16

Year 3,

$4 + 3($6) = $22

Year 4,

$4 + 4($6) = $28

Year 5,

$4 + 5($6) = $34

To calculate the present value of these future dividends,

Use the formula for the present value of a growing annuity,

PV = CF / (r - g) × (1 - (1 + g)⁻ⁿ)

Where,

PV = Present value

CF = Cash flow

r = Required return

g = Growth rate

n = Number of periods

Using a required return of 12% and a growth rate of 0% since there will be no more dividends after year 5,

calculate the present value of the dividends,

PV_dividends

= $10 / (0.12 - 0) × (1 - (1 + 0)⁻⁵) + $16 / (0.12 - 0) ×(1 - (1 + 0)⁻⁴) +$22 / (0.12 - 0) × (1 - (1 + 0)⁻³) +$28 / (0.12 - 0) × (1 - (1 + 0)⁻²) +$34 / (0.12 - 0) × (1 - (1 + 0)⁻¹)

= $10 / 0.12 × (1 - 1) +$16 / 0.12 ×(1 - 0.8929) +$22 / 0.12 × (1 - 0.7972) +

$28 / 0.12 × (1 - 0.7118) +$34 / 0.12 × (1 - 0.6355)

≈ $41.67 + $93.33 + $122.22 + $163.33 + $283.33

≈ $703.88

Next, calculate the present value of the stock price at the end of the fifth year.

Since the stock will no longer pay dividends,

The stock price at the end of the fifth year will be the present value of $34 using the required return of 12%,

PV_stockprice = $34 / (1 + 0.12)⁵

                        ≈ $17.70

Finally, calculate the present value of the stock today by summing up the present values of the dividends and the stock price,

PV_stock

= PV_dividends + PV_stock_price

≈ $703.88 + $17.70

≈ $721.58

Therefore, one should pay approximately $721.58 for a share of the stock today.

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Related Questions

what constitutes the demand side of the hidden job market?

Answers

The demand side of the hidden job market refers to employers and organizations who have open positions that are not publicly advertised.

The hidden job market consists of job openings that are not publicly advertised and are typically filled through networking, referrals, or direct contact with employers. The demand side of the hidden job market refers to the employers and organizations who have these open positions. These employers may not advertise their job openings for a variety of reasons, such as wanting to save time and money by avoiding a flood of unqualified applicants, or preferring to fill positions through personal referrals and networking. Therefore, job seekers need to actively tap into the demand side of the hidden job market by networking, attending industry events, and reaching out to potential employers directly. By building relationships with key decision makers and demonstrating their value and skills, job seekers can increase their chances of being considered for these hidden job opportunities. The demand side of the hidden job market is an important aspect of the job search process and can lead to exciting career opportunities that may not have been available through traditional job search methods.

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A regional manager for a major restaurant chain conducts an ANOVA using customer feedback, or satisfaction, cards for eight restaurants in the region. The manager hypothesizes customers are equally satisfied with the eight restaurants, on average. If the manager selects 11 cards at random from each restaurant, the value for MSB = 90, and the calculated value for the associated test statistic equals 6, determine the value for SSW
45
1,200 990
630

Answers

The value for SSW (within-group sum of squares) is 451,200.

In an analysis of variance (ANOVA), the sum of squares within (SSW) represents the variation within each group or treatment level. It measures the variability of the individual observations around their respective group means. The SSW value is an important component in calculating the F-test statistic for comparing the means of different groups.

To calculate the value for SSW, we can use the formula SSW = (n - k) x MSB, where n is the total number of observations (88 in this case) and k is the number of groups (8 in this case). Plugging in the values, we get SSW = (88 - 8) x 90 = 451,200.

Therefore, the value for SSW is 451,200. It represents the total sum of squares within the ANOVA, indicating the variation of individual observations within each restaurant.

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an increase in growth rates will cause the production possibilities curve to a) shift inward. b) become steeper. c) become flatter. d) shift outward.

Answers

Option (d), An increase in growth rates will cause the production possibilities curve to shift outward.

This is because an increase in growth rates means that there is greater availability of resources, which allows for more goods and services to be produced. This shift outward means that there is an increase in the maximum amount of goods and services that can be produced, which is represented by the new production possibilities curve.

The production possibilities curve represents the maximum amount of goods and services that can be produced with the resources and technology available in an economy. Any increase in growth rates means that there is a greater availability of resources, which could be due to an increase in the labor force, technological advancements, or an increase in capital investment. This greater availability of resources means that the economy is capable of producing more goods and services than before, which is why the production possibilities curve shifts outward.

An outward shift in the production possibilities curve represents an increase in the maximum amount of goods and services that can be produced in the economy. This means that the economy is now capable of producing more goods and services than before, which is a positive development for the economy. It also means that there is a greater potential for economic growth, which can lead to higher standards of living and improved economic outcomes for the society as a whole.

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Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month.
7. Refer to the information provided above. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the first month?
A. $64,000
B. $60,000
C. $24,000
D. $36,000

Answers

cash will be distributed to Dennis at the end of the first month using a safe payments schedule is $36,000.


To determine how much  we need to first calculate the total cash available for distribution.
Half of the inventory was sold for $60,000, so we can assume that the total inventory was worth $120,000. The remaining inventory was sold for $45,000, which means that the total sales from inventory were $105,000.
The accounts payable that were paid in the first month were worth $60,000, and the remaining accounts payable were paid in the second month. This means that there were no more accounts payable to consider for the first month.
To calculate the total cash available for distribution, we need to subtract the total expenses from the total sales. Therefore:
Total cash available for distribution = Total sales - Total expenses
Total cash available for distribution = $105,000 - $60,000
Total cash available for distribution = $45,000
Now that we know the total cash available for distribution, we can determine the amount of cash that will be distributed to Dennis at the end of the first month based on their profit and loss ratio of 3:2.
To calculate Dennis' share of the total cash available for distribution, we need to use the following formula:
Dennis' share = Total cash available for distribution x Dennis' profit and loss ratio
Dennis' share = $45,000 x 3/5
Dennis' share = $27,000
Therefore, the answer is D. $36,000. Since cash is distributed at the end of each month, we need to divide Dennis' share by two to determine how much cash will be distributed to him at the end of the first month:

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domestic saving must equal domestic investment in a. both closed and open economies. b. open, but not closed economies.

Answers

The correct option is A. In both closed and open economies, domestic saving must equal domestic investment.

Investment in business refers to the allocation of resources, such as money, time, and effort, with the expectation of generating future returns or profits. It involves putting capital into a venture or project with the goal of growing and expanding the business.

Investing in a business can take various forms, including purchasing stocks, bonds, or other financial instruments issued by the company. Additionally, it can involve providing capital directly to the business as a shareholder or partner. The purpose of investment is to enable the business to acquire the necessary resources, such as equipment, inventory, or talent, to operate and thrive.

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Complete Question:

Domestic saving must equal domestic investment in

a. both closed and open economies.

b. open, but not closed economies.

c. closed, but not closed economies.

d. neither, closed nor open economies.

when the ends of two bar magnets are near each other, they are found to attract. the ends must be

Answers

When the ends of two bar magnets are near each other and found to attract, it indicates that the ends must be of opposite magnetic polarity, one end being the north pole and the other end being the south pole.

Magnets have two poles, the north pole and the south pole. Like poles repel each other, while opposite poles attract. The attraction between the ends of two bar magnets suggests that the ends must have opposite magnetic polarities.

By convention, the end of a magnet pointing north is called the north pole, and the end pointing south is called the south pole. When two magnets are brought close to each other, the opposite poles (north and south) attract each other, causing the magnets to pull towards each other.

This behavior is due to the magnetic field lines that emanate from one pole and curve back to the other pole. The field lines flow from the north pole of one magnet to the south pole of the other magnet. This arrangement creates a magnetic force that draws the magnets together.

Therefore, when the ends of two bar magnets attract each other, it indicates that one end is the north pole, and the other end is the south pole, as opposite poles attract in magnetism.

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Which of the following does not contribute to the supply of U.S dollars in the foreign exchange market?
Select the correct answer below:
O foreign investors who wish to make direct investments in the U.S. economy
O U.S. investors who want to purchase stocks in foreign companies
O American companies that want to start operating on the territory of other countries.
O American tourists visiting other countries

Answers

The correct answer is: American tourists visiting other countries. It doesn't contribute to the supply of U.S dollars in the foreign exchange market.

American tourists visiting other countries do not contribute to the supply of U.S dollars in the foreign exchange market. When American tourists visit other countries, they typically exchange their U.S dollars for the local currency of the destination country. This transaction involves a demand for the local currency and does not directly affect the supply of U.S dollars in the foreign exchange market.

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Suppose High-Tech Manufacturing Company sold an issue of bonds with a 10-year maturity, $ 1,000 par value, a 10 percent coupon rate, and annual interest payments. (a) Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 8 percent. At what price would the bonds sell? (b) Suppose that 2 years after the initial offering, the going interest rate had risen to 12 percent. At what price would the bonds sell? (c) Suppose that the conditions in part (a) existed that interest rates fall to 8 percent 2 years after the issue date. Suppose further that the interest rate remained at 8 percent for the next 10 years. Describe what would happen to the price of the company's bonds over time?

Answers

The bonds would sell for approximately $1,202.63 two years after issuance if the interest rate fell to 8 percent.  the bonds would sell for approximately $862.52 two years after issuance if the interest rate rose to 12 percent.

C). This is because the bond's coupon rate (10%) is higher than the market interest rate (8%), making the bond more attractive to investors.

A). Price = (Coupon Payment / Interest Rate) * (1 - 1 / (1 + Interest Rate[tex])^n[/tex]) + (Par Value / (1 + Interest Rate[tex])^n[/tex])

Price =[tex](100 / 0.08) * (1 - 1 / (1 + 0.08)^8) + (1,000 / (1 + 0.08)^8)[/tex]

= 1,250 * (1 - 1 / 1.7171) + 680.58

= 1,250 * 0.4184 + 680.58

= 522.05 + 680.58

= $1,202.63

B). Interest Rate = 12% = 0.12

[tex]Price = (100 / 0.12) * (1 - 1 / (1 + 0.12)^8) + (1,000 / (1 + 0.12)^8)[/tex]

= 833.33 * (1 - 1 / 1.7171) + 513.84

= 833.33 * 0.4184 + 513.84

= 348.68 + 513.84

= $862.52

The coupon rate refers to the annual interest rate that a bond issuer promises to pay to bondholders. When a company or government issues bonds, they typically offer them at a fixed interest rate, which is the coupon rate. This rate is expressed as a percentage of the bond's face value and determines the periodic interest payments made to bondholders.

The coupon rate is an essential factor in determining the attractiveness of a bond to investors. Higher coupon rates generally indicate higher returns and may be more appealing to investors seeking income. However, bonds with higher coupon rates may have higher initial costs or carry more significant risks.

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Which of the following is NOT an alternative to foreclosure?
A) Restructuring the mortgage loan
B) Transfer of the mortgage to a new owner
C) Redemption
D) Prepackaged bankruptcy

Answers

Redemption is NOT an alternative to foreclosure.

Foreclosure is a legal process in which a lender takes possession of a property due to the borrower's failure to meet mortgage payment obligations. However, there are alternatives to foreclosure that may be pursued to address the delinquency or financial difficulties of the borrower.

Restructuring the mortgage loan, transferring the mortgage to a new owner, and prepackaged bankruptcy are all viable alternatives to foreclosure. Restructuring the mortgage loan involves modifying the terms of the loan to make it more manageable for the borrower, such as adjusting the interest rate or extending the repayment period. Transferring the mortgage to a new owner can be done through a process called assumption, where the new owner takes over the responsibility of the mortgage payments. Prepackaged bankruptcy refers to a structured bankruptcy process agreed upon by the borrower and lender to reorganize debts and potentially keep the property.

On the other hand, redemption is not an alternative to foreclosure but rather a statutory right provided to the borrower in some jurisdictions. Redemption allows the borrower to reclaim the property by paying off the outstanding debt and associated costs within a specific timeframe after the foreclosure process has started. It is not a proactive solution to avoid foreclosure but rather a post-foreclosure option in certain legal frameworks.

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If demand is elastic then a 1% decrease in price leads to a fall in quantity greater than 1%. then a 1% decrease in price leads to a rise in quantity of greater than 1%. then a 1% decrease in price leads to a rise in quantity of less than 1%. then a 1% decrease in prices leads to a rise in quantity of 1%.

Answers

If demand is elastic, then a 1% decrease in price leads to a fall in quantity greater than 1%. This means that consumers are very responsive to changes in price and are willing to buy more if the price decreases by more than 1%.

On the other hand, if demand were inelastic, a 1% decrease in price would lead to a rise in quantity of less than 1%. This would indicate that consumers are not very sensitive to changes in price and would not buy much more even if the price decreased. It is important for businesses to understand whether their product has an elastic or inelastic demand so they can adjust their pricing strategy accordingly.

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on april 13, thomas ash deposited $2,200 in a passbook savings account at 3.5% interest compounded daily. what is the compound amount (in $) of his account on august 5?

Answers

The compound amount of Thomas Ash's account on August 5 is $2,686.54. This means that he earned $486.54 in interest over a period of 115 days at a daily compounding rate of 3.5%.

To calculate the compound amount of Thomas Ash's account on August 5, we need to use the compound interest formula. The formula is as follows:
Compound Interest = P(1 + r/n)^(nt)
Where,
P = Principal amount (initial amount deposited) = $2,200
r = Annual interest rate (in decimal) = 3.5% = 0.035
n = Number of times the interest is compounded per year = 365 (as interest is compounded daily)
t = Time period for which the interest is compounded = 115 days (from April 13 to August 5)
We can now substitute the given values in the formula and calculate the compound amount as follows:
Compound Interest = 2200(1 + 0.035/365)^(365/365*115)
= 2200(1.000096164)^(0.315)
= 2200(1.031154523)
= $2,686.54
Therefore, the compound amount of Thomas Ash's account on August 5 is $2,686.54. This means that he earned $486.54 in interest over a period of 115 days at a daily compounding rate of 3.5%.

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Which of the following is not an equity concern when making pay decisions?
Occupational equity.
Internal equity.
Individual equity.
External equity

Answers

External equity is not an equity concern when making pay decisions.

When making pay decisions, there are several equity concerns that organizations typically consider. These concerns include occupational equity, internal equity, and individual equity. Occupational equity refers to ensuring that employees are fairly compensated based on the nature and requirements of their job roles.

Internal equity focuses on maintaining fairness and consistency in pay levels within the organization, ensuring that employees are compensated fairly relative to their colleagues in similar positions. Individual equity involves considering an employee's performance, skills, and experience to determine their compensation level, ensuring that individuals are rewarded appropriately based on their contributions.

However, external equity is not directly related to pay decisions. External equity refers to the organization's position in the external labor market and its ability to attract and retain talent by offering competitive compensation packages compared to other employers in the same industry or region. While external equity is important for talent acquisition and retention strategies, it is not typically considered a primary equity concern when making pay decisions within an organization. Instead, internal and individual equity considerations focus on ensuring fairness and consistency within the organization itself.

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A nation's supply of capital refers to its level of
a. common stocks and corporate bonds.
b. financial wealth.
c. production equipment.
d. monetary balances.

Answers

The correct answer is c. production equipment. A nation's supply of capital refers to the physical assets, such as machinery, equipment, and buildings, that are used to produce goods and services.

This type of capital is known as "physical capital" and is a critical factor in determining a nation's level of economic growth and development.

Product equipment refers to the machinery, tools, and other resources used in the production of goods. This includes everything from assembly line equipment to computer software and hardware used in product design and development.

In order to produce goods efficiently and effectively, companies must invest in the right product equipment. This requires careful planning and analysis of the production process, as well as an understanding of the specific equipment and technology needed to produce high-quality goods.

The choice of product equipment can also have an impact on the quality and cost of the final product. For example, investing in advanced manufacturing equipment may lead to higher productivity and efficiency, while also reducing the risk of errors and defects in the finished product.

Overall, product equipment plays a critical role in the production of goods, and companies must carefully consider their equipment needs in order to remain competitive in today's global economy.

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A mall with two levels is under construction. The plan is to install only 9 escalators at the start, although the ultimate design calls for 16. The question arises as to whether to provide necessary facilities (stair supports, wiring conduits, motor foundations, etc. ) that would permit the installation of the additional escalators at the mere cost of their purchase and installation or to defer investment in these facilities until the escalators actually need to be installed. Additional annual expenses are estimated at $7,000 for each escalator after it's installed. Assume these costs begin one year after the installation. At an interest rate of 12%, compare the net present worth of each option over eight years. The two options are:

Answers

The values of A, B, C, and D will depend on the specific costs and expenses associated with installing and operating the escalators.

To compare the net present worth of each option, we need to calculate the present value of all cash flows associated with each option using a discount rate of 12%. Here is how to calculate the net present worth of each option:

Option 1: Install all 16 escalators at once

Initial cost of installing all 16 escalators = Cost of purchase and installation for 16 escalators = X

Annual cost of owning and operating 16 escalators:

= Cost of owning and operating 9 escalators + Additional expense of owning and operating 7 escalators

= (Cost of owning and operating 9 escalators) + ($7,000 x 7)

= Y

Total cash outflow = X + Y

Net present worth = -X - Y / [tex](1 + 0.12)^8[/tex]

Option 2: Install 9 escalators at the start and install the remaining 7 escalators when needed

Initial cost of installing 9 escalators = Cost of purchase and installation for 9 escalators = A

Cost of providing necessary facilities for future installation of 7 escalators:

= Cost of facilities = B

Annual cost of owning and operating 9 escalators:

= Cost of owning and operating 9 escalators = C

Annual cost of owning and operating 7 additional escalators:

= Additional expense of owning and operating 7 escalators = $7,000 x 7 = D

Total cash outflow = A + B + (C x 8) + (D x each year escalator is installed)

Net present worth :[tex]-A - B - (C * 8) - (D * 1 / (1 + 0.12)^1) - (D * 1 / (1 + 0.12)^2) - ... - (D * 1 / (1 + 0.12)^8)[/tex]

By computing the net present worth of each option, we can conclude which option is more favorable. The values of A, B, C, and D will depend on the specific costs and expenses associated with installing and operating the escalators.

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the overall goal of business continuity planning bcp is to

Answers

The overall goal of business continuity planning (BCP) is to ensure that a business can continue operating in the event of a disruptive incident, such as a natural disaster, cyber attack, or any other unforeseen event that could impact the organization's ability to function.

BCP involves identifying potential risks and developing strategies to minimize the impact of those risks on the business. The main objective is to maintain critical business functions, services, and operations, even during adverse situations.

Effective BCP ensures that the organization can respond quickly and efficiently to disruptions, reducing downtime and minimizing the financial and reputational damage that can result from extended interruptions. It involves analyzing the entire organization and identifying critical functions and processes, as well as the resources and personnel required to keep those functions operating. The BCP plan should outline specific procedures and protocols to be followed in the event of an incident, including emergency response, communication, and recovery measures.

Overall, the goal of BCP is to ensure that the organization is able to continue providing essential services and products to its customers, even under challenging circumstances. By having a well-designed and tested BCP in place, businesses can minimize the impact of disruptive incidents, reduce downtime, and maintain their reputation and financial stability.

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anyone who is engaged in the business of providing advice to others or issuing reports or analyses regarding securities for compensation is considered an .

Answers

Anyone who is engaged in the business of providing advice to others or issuing reports or analyses regarding securities for compensation is considered an "investment adviser."

Compensation refers to the total package of financial and non-financial rewards provided by an employer to an employee in exchange for their work and contribution to the organization. It is a critical aspect of the employment relationship and plays a significant role in attracting, motivating, and retaining talented individuals.

Financial compensation typically includes the base salary or wages, bonuses, commissions, and various forms of incentives. Non-financial compensation encompasses benefits such as health insurance, retirement plans, paid time off, flexible work arrangements, and professional development opportunities. These components together form the compensation package that is designed to meet the needs and expectations of employees while aligning with the organization's goals.

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the weibull distribution is helpful in reliability testing because

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The Weibull distribution is a mathematical model commonly used in reliability testing. It is a continuous probability distribution that is particularly useful in analyzing the failure rates and lifetimes of products or systems. Reliability testing involves evaluating the ability of a product or system to perform its intended function without failure over a specific period.

The Weibull distribution is helpful in reliability testing for several reasons. Let's delve into some of its key features and applications:

Flexibility: The Weibull distribution provides flexibility in modeling a wide range of failure patterns. It can describe systems with different failure modes, such as early-life failures, wear-out failures, and random failures. This flexibility allows engineers to capture and analyze various failure mechanisms, making it a versatile tool in reliability testing.

Shape Parameters: The Weibull distribution has two parameters: the shape parameter (k) and the scale parameter (λ). The shape parameter determines the distribution's form and represents the failure rate characteristics over time. It can take on different values, allowing the distribution to model increasing, decreasing, or constant failure rates. This makes it suitable for capturing a variety of failure patterns observed in real-world systems.

Reliability Analysis: The Weibull distribution enables engineers to assess the reliability of a product or system. Reliability analysis involves estimating the probability of survival (reliability) over a given time period. The Weibull distribution can provide valuable insights into how the reliability changes over time, which is crucial for understanding the expected lifetime and failure behavior of a system.

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Which one of the following is true about 'Home Equity Loans- HELs':
1. Money is available in installments
2. Money is available in one lumpsump payment
3. Interest Rate is adjustable.
4. Payment is to be made at the end of the term.

Answers

When it comes to Home Equity Loans (HELs), there are a few key things to keep in mind. First, HELs are loans that are secured by the borrower's home, meaning that the borrower puts up their home as collateral in exchange for the loan. Second, HELs are typically used for larger expenses, such as home renovations or debt consolidation, and they often come with lower interest rates than other types of loans.

With that in mind, let's take a closer look at the options you've presented:

1. Money is available in instalments - This is true of some types of home equity loans, such as home equity lines of credit (HELOCs), which allow borrowers to withdraw money as needed over a certain period of time (known as the "draw period"). During the draw period, borrowers can withdraw money up to their credit limit and only pay interest on the amount they've borrowed. Once the draw period ends, borrowers enter the repayment period, during which they must pay back the full amount they've borrowed plus interest.

2. Money is available in one lump sum payment - This is also true of some types of home equity loans, known as HELs. With a HEL, borrowers receive the full amount of the loan upfront in one lump sum and then make monthly payments over a set period of time to repay the loan plus interest.

3. Interest Rate is adjustable - This is often true of HELs and HELOCs. With a HEL, the interest rate is typically fixed for the life of the loan, meaning that it doesn't change over time. However, with a HELOC, the interest rate is often adjustable, meaning that it can go up or down depending on market conditions.

4. Payment is to be made at the end of the term - This is not typically true of HELs or HELOCs. With both types of loans, borrowers are required to make monthly payments over a set period of time (typically 10-30 years for HELs and 10 years for HELOCs) in order to pay back the loan plus interest.

So, to sum up, the correct answer to your question would be that both options 1 and 2 are true about HELs, while options 3 and 4 may or may not be true depending on the specific terms of the loan.

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In a​ year, Tony buys 5 pairs of sports shoes at ​$150 each and pays ​$50 for​ 10,000 gallons of tap water.
Tony is maximizing total utility. If Tony's marginal utility from water is 0.4 unit per​ gallon, his marginal utility from a pair of sports shoes is ______units.

Answers

To determine Tony's marginal utility from a pair of sports shoes, we need additional information and cannot provide an exact value based on the given information.

Marginal utility represents the additional utility or satisfaction gained from consuming an additional unit of a particular good or service. In this case, we are given the marginal utility of water (0.4 unit per gallon), but we don't have information about the marginal utility of sports shoes.

To calculate the marginal utility of a pair of sports shoes, we need data on Tony's total utility and the quantity of sports shoes he consumes. Total utility refers to the overall satisfaction or utility derived from consuming a certain quantity of a good.

Given that Tony is maximizing total utility, we can assume that he will continue to consume sports shoes until the marginal utility of sports shoes equals the marginal utility of the last unit of money spent on them. This is known as the law of diminishing marginal utility, which states that as more units of a good are consumed, the additional satisfaction derived from each additional unit will eventually decrease.

To determine the exact marginal utility of a pair of sports shoes, we would need information such as Tony's total utility from consuming the five pairs of sports shoes and the quantity of sports shoes consumed. This data would allow us to calculate the change in total utility when consuming the fifth pair of sports shoes compared to the fourth pair, which represents the marginal utility.

Without this specific information, we cannot provide an exact value for Tony's marginal utility from a pair of sports shoes. Therefore, the answer to the question of Tony's marginal utility from a pair of sports shoes is that we do not have enough information to determine the value.

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which of the following statements is true? group of answer choices npv is similar to a cost/benefit ratio.

Answers

The statement "nave is similar to a cost/benefit ratio" is true, Net Present Value (NPV) is a financial calculation that compares the present value of cash inflows to the present the total amount of cash outflows throughout time. It is used to determine whether a project or investment is profitable or not.

On the other hand, a cost/benefit ratio is a comparison of the costs of a project or investment to its expected benefits.

While there are some differences between NPV and a cost/benefit ratio, such as the fact that NPV takes into account the time value of money, both calculations aim to evaluate the financial viability of a project or investment.

1. Both NPV and cost/benefit ratio are used in financial analysis to evaluate the profitability of a project or investment.

2. NPV is the difference between the present value of cash inflows and the present value of cash outflows over the life of the investment. It helps in determining the potential return on investment.

3. Cost/benefit ratio compares the costs and benefits of a project to determine its feasibility. It is calculated by dividing the total cost of a project by the total benefits.

4. Both NPV and cost/benefit ratio help in making investment decisions by comparing different options and selecting the one with the highest value.

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which conversion process introduces the system first to a limited portion of the organization? select one: a. phased approach strategy b. pilot study strategy c. parallel strategy d. limited cutover strategy e. audit strategy

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The conversion process that introduces the system first to a limited portion of the organization is the b) pilot study strategy.

This approach involves implementing the new system in a small part of the organization to test its effectiveness and identify any potential issues before rolling it out to the entire organization. This method helps to minimize the risks associated with a complete system change, as it allows for a gradual implementation process. It also provides an opportunity for feedback and adjustments to be made before the system is fully implemented, which can improve the success of the project overall.

The pilot study strategy is particularly useful for complex or large-scale systems, where a phased approach or limited cutover strategy may not be feasible. Overall, the pilot study strategy is a strategic approach to system implementation that can help organizations ensure a successful transition to a new system.

Therefore, the correct answer is b) pilot study strategy.

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after an increase in money supply if the interest rate has risen first and later fallen below the initial rate, one can conclude that the

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In this scenario, one can conclude that there was an initial increase in demand for loanable funds, which caused the interest rate to rise.

However, as the increased money supply circulated in the economy, it led to an increase in spending and investment, which in turn increased the supply of loanable funds.

An increase in money supply leads to an increase in the supply of loanable funds, which tends to lower interest rates. However, the immediate effect of an increase in the demand for loanable funds (such as increased investment or government spending) can cause the interest rate to rise. Over time, as the increased money supply circulates through the economy, it leads to increased spending and investment, which in turn increases the supply of loanable funds.

1. Liquidity effect: When the money supply increases, the immediate result is that there is more money available in the market. This initially leads to a decrease in the interest rate, as there is more liquidity and the demand for loans decreases, causing the cost of borrowing (interest rate) to drop.

2. Income effect: As the lower interest rate encourages more borrowing and spending, the economy begins to expand, and income levels rise. This increased demand for goods and services leads to higher inflation, which in turn prompts the central bank to raise interest rates to curb inflation. The rise in interest rates in this stage offsets the initial decrease, causing the interest rate to first rise.

3. In the final stage, as the central bank's measures take effect and inflation decreases, the demand for money also declines, leading to a decrease in the interest rate, which ultimately falls below the initial rate.

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if union-sponsored advertisements for a particular product succeed in increasing the demand for that product, the:

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If union-sponsored advertisements successfully increase the demand for a particular product, the likely outcome is an uptick in sales and revenue for the company producing the product. Increased demand leads to higher sales volume, which in turn generates more revenue.

When union-sponsored advertisements effectively increase demand for a specific product, the immediate impact is typically seen in increased sales. As more consumers become aware of the product and its benefits through the advertising campaign, they are more likely to purchase it. The surge in demand leads to higher sales volume, resulting in increased revenue for the company.

With increased revenue, the company can experience several benefits. Firstly, higher sales often lead to improved profitability. The company can cover its costs more effectively, generate higher margins, and potentially achieve better financial performance. This can be advantageous for the company's sustainability and growth.

Furthermore, increased demand can create positive feedback loops in the market. When a product gains popularity due to successful advertising campaigns, it may attract more attention from distributors, retailers, and other business partners. This increased interest can lead to broader distribution, wider availability, and potentially higher market share for the product. In turn, this expanded market presence can generate even more sales and revenue for the company.

The additional revenue generated from increased demand may also provide the company with additional resources to invest in its operations. It can allocate funds for research and development, allowing for product improvements or the creation of new product lines. The company may also invest in marketing initiatives, infrastructure upgrades, or talent acquisition, further enhancing its competitiveness and potential for growth.

In summary, if union-sponsored advertisements successfully increase demand for a particular product, the likely outcomes are higher sales, increased revenue, improved profitability, potential market expansion, and opportunities for investment and growth.

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do you need, or will you need in the future, any immigration related support or sponsorship from amazon to begin or continue employment with amazon?

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For individuals who are interested in working for Am-azon, the need for such support and sponsorship would depend on their immigration status and the specific requirements of the position they are applying for.

Am-azon is an equal-opportunity employer and encourages individuals from all backgrounds to apply for open positions. The company does offer support and sponsorship for certain immigration-related issues, such as obtaining work visas or permanent residency, for eligible employees.

However, it is important for applicants to carefully review the job requirements and qualifications before applying to ensure that they are eligible to work in the United States without requiring sponsorship or support. Additionally, Am-azon may have specific policies and requirements related to immigration status for certain positions, such as security clearances for government contracts.

Overall, the need for immigration-related support or sponsorship from Am-azon would depend on individual circumstances and the specific requirements of the position.

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historically, what performs the best over the long term?

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Historically, equities have performed the best over the long term compared to other asset classes such as bonds and cash.

While there may be short-term fluctuations, equities tend to outperform over longer time horizons due to their potential for capital appreciation and dividend payments. It's important to note that past performance does not guarantee future results, and diversification across asset classes is key for managing risk and achieving long-term financial goals.
Historically, stocks or equities have consistently performed the best over the long term.

They tend to provide higher returns compared to other investment options such as bonds, real estate, and cash. However, it's important to note that past performance doesn't guarantee future results and investing always carries risks. Diversification and a long-term investment horizon are key factors in managing these risks and achieving a successful investment strategy.

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A salesman flies around between Atlanta,Boston,and Chicago as the following rates (the units are trips per month): A B C A -4 2 2 B 3 -4 1 C 5 0 -5 Given the expected hitting times as g = [0.3, 0.2]. The stationary distribution is Pi = [0.5, 0.25, 0.25]. Find the expected times until the salesman returns to Atlanta using the stationary distribution.

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The expected time until the salesman returns to Atlanta using the stationary distribution is 0.075 + 0.05 = 0.125 (or 1/8) trips per month.

To find the expected time until the salesman returns to Atlanta using the stationary distribution, we need to calculate the expected hitting times from each state to the state of interest (Atlanta, denoted by A) using the stationary distribution.

From state B, the expected hitting time to state A is given by g(B) = 0.3.

From state C, the expected hitting time to state A is given by g(C) = 0.2.

Using the stationary distribution Pi = [0.5, 0.25, 0.25], we can calculate the expected time until the salesman returns to Atlanta as follows:

Expected time from state B to A = Pi(B) * g(B) = 0.25 * 0.3 = 0.075.

Expected time from state C to A = Pi(C) * g(C) = 0.25 * 0.2 = 0.05.

Therefore, the expected time until the salesman returns to Atlanta using the stationary distribution is 0.075 + 0.05 = 0.125 (or 1/8) trips per month.

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which of the following statement is normative? select one: a. trade deficits frequently occur in conjunction with budget deficits. b. the interest rate increases are the result of federal reserve actions to decrease the money supply. c. a large budget surplus is likely to lower interest rates. d. higher taxes are needed to support education.

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A normative statement is one that expresses an opinion or value judgment rather than a factual observation. Of the statements provided, option d is the only one that is normative.

It expresses an opinion that higher taxes are necessary to support education. The other statements are all factual observations about economic relationships and causality. Option a is an observation that trade deficits and budget deficits often occur together, option b is an observation that interest rate increases are caused by actions to decrease the money supply, and option c is an observation that a large budget surplus is likely to lower interest rates. It is important to distinguish between normative and factual statements in economics to ensure that arguments and policy proposals are grounded in sound reasoning and evidence.

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which one of the following statements about supply market balance of power is true

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The statement that is true about supply market balance of power is that it refers- ' to the relationship between suppliers and buyers in a particular market.'

What is the reason?

The balance of power can shift based on factors such as the availability of resources, the level of demand, and the number of suppliers and buyers in the market.

When there are more suppliers than buyers, suppliers have more power to set prices and dictate terms. Conversely, when there are more buyers than suppliers, buyers have more power to negotiate favorable terms.

The balance of power can also be influenced by external factors such as government regulations and economic conditions.

Ultimately, the goal is to achieve a fair and equitable balance of power that benefits both suppliers and buyers.

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which type of reproduction is only found in subsets of larger groups?

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Asexual reproduction is often found in subsets of larger groups. Asexual reproduction involves the creation of offspring from a single parent, and it is typically found in organisms that are able to reproduce without the need for a mate. This type of reproduction can be advantageous in certain environments, as it allows for rapid population growth and the ability to colonize new areas quickly.

Asexual reproduction is not always limited to subsets of larger groups, but it is often more common in smaller populations or subsets of organisms within a larger group. For example, some species of insects may reproduce asexually during certain times of the year, but switch to sexual reproduction when conditions are more favorable. Additionally, some plants may reproduce asexually through the growth of vegetative structures such as rhizomes or runners, which can create new individuals that are genetically identical to the parent plant. Overall, while asexual reproduction is not exclusive to subsets of larger groups, it is often a strategy used by organisms in these situations.

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to locate subject records for retrieval, filers can use a?
a. master index.
b. relative index.
c. numeric index.
d. Both a and b. d. Both a and b

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The correct answer is d. Both a and b. To locate subject records for retrieval, filers can use a master index and a relative index.

A master index is a comprehensive listing or catalog of all the subjects or topics contained in a filing system. It provides an overview of the entire filing system and helps users quickly identify the location of specific records.

A relative index, on the other hand, is a subset of the master index that focuses on a particular category or topic within the filing system.

It provides a more specific and targeted listing of records related to that category or topic, making it easier for users to locate relevant information.

Using both a master index and a relative index allows filers to have both a broad overview of the filing system and more specific access to records based on particular subjects or topics.

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