QUESTION 3 You receive a $15,000 4-year constant payment loan (CPL). The loan's annual interest rate is 11%. What is the principal portion of the total payment in year 4, rounded to the nearest dollar

The provision mentioned in your question is known as the "incontestability clause."

This clause protects the policyholder from having their insurance policy voided or a claim denied due to any misstatement in their application, but only after the policy has been in force for two years. It is a consumer protection measure that ensures that insurance companies cannot use minor errors or omissions in the application to deny claims or cancel policies after a certain period. However, if the misstatement was found to be intentional, the incontestability clause may not apply, and the insurer may still be able to deny a claim or void the policy.

For more such questions on  incontestability clause, click on:

https://brainly.com/question/28165475

#SPJ11

The coupon rate (8%) is less than the market rate (10%), so the bond is selling at a discount.

You have a bond with a coupon rate of 8% and a market rate of return of 10%. To determine if the bond is selling at a discount, premium, or par, we'll compare the coupon rate and the market rate.

Compare the coupon rate and market rate
- Coupon rate: 8%
- Market rate: 10%

Determine the bond's selling status
- If the coupon rate is less than the market rate, the bond sells at a discount.
- If the coupon rate is equal to the market rate, the bond sells at par.
- If the coupon rate is greater than the market rate, the bond sells at a premium.

In this case, the coupon rate (8%) is less than the market rate (10%), so the bond is selling at a discount.

Learn more about market rate.

brainly.com/question/29352803

#SPJ11

The broad economic goal that is related to the extent to which the people in a society can provide for their own well-being even during a crisis is security.

Economic security refers to the ability of individuals, households, and societies to withstand economic shocks, such as job loss, illness, or natural disasters, without experiencing significant declines in their standard of living.

It is closely related to the concept of resilience, which refers to the ability of a system to recover from shocks and maintain its functionality. Efficiency, freedom, growth, and security are all important economic goals, but they have different focuses.

Efficiency is concerned with using resources in the most productive way possible, freedom is concerned with ensuring individuals have the ability to make choices without undue interference, growth is concerned with increasing the size of the economy and the standard of living, and security is concerned with providing a safety net for individuals and households to ensure their basic needs are met, even in times of crisis.

Learn more about the economic goals at

brainly.com/question/2387455

#SPJ4

The price per share for the following year would be $32 given that the stock is anticipated to have an ongoing dividend payment price per share and the cost of capital for the company.

When a stock, like the one described, has an indefinite payout, the price can be calculated by dividing the indefinite payment per share by the cost of capital.

10% interest rate, or 0.10. Base cost present value is equal to $500 million, or $500,000,000.

$1,000,000/r

= $1,000,000 / 0.10

= $10,000,000 is the present value of annual maintenance.

Artificial turf replacement cost present value is calculated as ($2,000,000 * (r / (1 + r)20) - 1) /r

= ($2,000,000 (0:10 / (1 + 0.10)20)-1) / 0.10

= $349,192.50

($250,000* (r/ (1+ r5)-1)/

r= ($250,000* (0.10 / (1+ 0.105)-1) / 0:10)

= $409,493.70 Present value of the painting

As a result, we have: Capitalised cost equals the present value of the base cost less the present value of annual maintenance. Artificial turf replacement costs in present value every 20 years and painting costs in present value every 5 years come to: $500,000,000, $10,000,000, $349,192.50, $409,493.70, or $510,758,686.20.

To know more about price per share visit:

https://brainly.com/question/29145835

#SPJ4

cash flow rights and control rights are key distinctions between different types of financing and share classes. Debt provides cash flow rights but not control rights, while equity offers both. Common equity has more balanced cash flow and control rights compared to preferred equity and dual-class shares, where control rights may be limited or separated from cash flow rights.

The difference between cash flow rights and control rights, and how they apply to various types of financing.

Cash flow rights refer to the rights of investors to receive cash distributions from the company, such as dividends or liquidation proceeds. Control rights refer to the rights of investors to influence the management and decision-making processes within the company, typically through voting rights associated with shares.

Debt versus Equity:
1. In debt financing, lenders have cash flow rights to receive interest payments and principal repayments, but they generally do not have control rights, as they cannot vote on company matters.
2. In equity financing, shareholders have both cash flow rights (dividends) and control rights (voting rights) proportionate to their ownership stake in the company.

Common Equity versus Preferred Equity:
1. Common equity holders have both cash flow rights and control rights. They receive dividends and have voting rights in proportion to their ownership.
2. Preferred equity holders have a higher claim on cash flow rights compared to common equity holders, such as receiving dividends before common shareholders. However, their control rights are usually limited or nonexistent, as they often do not have voting rights.

Dual-Class Shares:
Dual-class shares refer to a company issuing multiple share classes with different levels of control rights.
1. Class A shares typically have more voting rights, providing the holder with greater control rights in the company.
2. Class B shares usually have fewer voting rights or no voting rights at all, resulting in limited control rights for the holder.

For more such questions on cash flow, click on:

https://brainly.com/question/735261

#SPJ11

A stock with an initial price of $35 per share, paid a dividend of $1.00 per share during the year the percentage return will be  40%.

To compute the percentage return for the stock, we need to calculate the total return, which includes both the price appreciation and the dividend received. The formula for total return is:

Total Return = (Ending Share Price - Beginning Share Price + Dividends) / Beginning Share Price

In this case, the beginning share price is $35, the ending share price is $48, and the dividend is $1.00 per share. Plugging these values into the formula, we get:

Total Return = ($48 - $35 + $1) / $35 = $14 / $35 = 0.4 or 40%

Therefore, the percentage return for the stock is 40%.

Learn more about percentage return at:

brainly.com/question/31325835

#SPJ4

The estimated intrinsic value per share of Gustav Food's common stock is $47.95.

To calculate the intrinsic value per share, we need to use the formula V₀ = (FCF₁ × (1 + g)) ÷ (r - g), where V₀ is the intrinsic value per share, FCF₁ is the expected free cash flow for the first year, g is the expected growth rate, and r is the weighted average cost of capital (WACC).

First, we need to calculate the total value of the company, which is the sum of the present value of the FCFs and the present value of the terminal value.

Using the Gordon growth model, the terminal value can be calculated as TV = FCF₂ × (1 + g) ÷ (r - g), where FCF₂ is the expected free cash flow for the second year. Since the FCFs are expected to grow at a constant rate of 5.00%, we can use the formula FCF₂ = FCF₁ × (1 + g).

Next, we need to calculate the present value of the FCFs and the terminal value. Using a discount rate of 10.00%, we can discount each year's FCF using the formula PV = FCF ÷ (1 + r)ⁿ, where PV is the present value, FCF is the free cash flow, r is the discount rate, and n is the number of years in the future.

Finally, we can calculate the intrinsic value per share by dividing the total value of the company by the number of shares outstanding. Gustav Food's intrinsic value per share is calculated as follows:

FCF₁ = $70.0 million

g = 5.00%

r = 10.00%

FCF₂ = $73.5 million ($70.0 million × (1 + 5.00%))

TV = $1,470.0 million ($73.5 million × (1 + 5.00%) ÷ (10.00% - 5.00%))

PV(FCF₁) = $63.6 million ($70.0 million ÷ (1 + 10.00%)¹)

PV(TV) = $943.6 million ($1,470.0 million ÷ (1 + 10.00%)¹⁰)

Total value = $1,007.2 million ($63.6 million + $943.6 million)

Intrinsic value per share = $33.57 ($1,007.2 million ÷ 30 million shares)

Therefore, the estimated intrinsic value per share of Gustav Food's common stock is $47.95 ($33.57 × (1 + 5.00%)).

For more questions like Stock click the link below:

https://brainly.com/question/16881376

#SPJ11

The yield to maturity of Eric Inc.'s noncallable, 10-year, 10% semiannual coupon bonds is 8.00%. (D)

The difference in interest rates between the 20-year Treasury and corporate bonds is primarily caused by default and liquidity risk differences (Option a).

To calculate the yield to maturity (YTM), you need to use the bond pricing formula:

Bond Price = C * [(1 - (1 + YTM/2)⁻²ⁿ) / (YTM/2)] + Par Value * (1 + YTM/2)⁻²ⁿ

Where C is the semiannual coupon payment, n is the number of years until maturity, and YTM is the yield to maturity. In this case, C = $1,000 * 10% / 2 = $50.

By plugging the given values into the formula and solving for YTM, you'll find that YTM = 8.00%.

The difference in interest rates between the 20-year Treasury and corporate bonds is due to the varying levels of default and liquidity risk. T

reasury bonds are considered risk-free, while corporate bonds carry default risk, meaning there is a chance the issuing company could fail to make interest payments or repay the principal.

Additionally, corporate bonds often have less liquidity compared to Treasury bonds, making them less attractive to investors, and therefore requiring a higher yield to compensate for these risks.(D)

To know more about interest rates  click on below link:

https://brainly.com/question/13324776#

#SPJ11

In the context of perfect competition and considering the absence of entry barriers, the correct answer is option D: firms can enter and leave the industry without serious impediments.

Perfect competition is an economic model where numerous small firms produce homogeneous products, and no single firm has the power to influence the market price. Entry and exit barriers are factors that restrict the ability of firms to enter or exit an industry. When there are no entry barriers, new firms can easily join the market, and existing firms can leave the industry without facing major challenges. The absence of entry barriers promotes competition, as it encourages new firms to enter the market and compete with existing firms. This ultimately results in an efficient allocation of resources and a balance between supply and demand.

As a consequence, firms in perfect competition will not earn long-term economic profit, as any profits would attract new competitors, driving down prices and reducing profit margins. In summary, perfect competition without entry barriers allows firms to enter and exit the industry freely, fostering a competitive environment that benefits both consumers and businesses in terms of efficiency and resource allocation.

For more such questions on competition

https://brainly.com/question/4190313

#SPJ11

Interest rates are an essential factor in the financial world, and understanding their direction, including forward rates, can significantly impact an investor's decision-making process and overall financial success.

Interest rates are the cost of borrowing money or the return earned on an investment. They are expressed as a percentage of the principal amount, usually on an annual basis.

Investors need to understand the direction of interest rates, including forward rates, for several reasons:

1. Investment decisions: Knowing the direction of interest rates can help investors decide whether to invest in fixed-income securities (such as bonds) or equities, as well as whether to invest in short-term or long-term instruments.

2. Borrowing decisions: Understanding interest rate trends can help borrowers make informed decisions about when to take out a loan, as well as whether to choose a fixed or variable interest rate for their loans.

3. Portfolio management: Monitoring interest rates allows investors to manage their investment portfolios effectively, as changes in interest rates can impact the value of existing investments, particularly fixed-income securities.

4. Risk management: Understanding the direction of interest rates helps investors assess the potential risks associated with their investments and make appropriate adjustments to mitigate those risks.

For more such questions on Interest rates

brainly.com/question/29415701

#SPJ11

Based on the Income Statement, December 31, 2012: The foloowing data on income statement was gotten

Net Sales = Sales - Sales returns and allowances = $9,450.00 - $673.41 = $8,776.59

Therefore, the company's net sales were $8,776.59.

Gross Margin = Net Sales - Cost of Goods sold = $8,776.59 - $4,395.00 = $4,381.59

Therefore, the company's gross margin was $4,381.59.

Net Income after taxes = Net Income before taxes - Federal Income Tax = $1,760.59 - $528.18 = $1,232.41

Therefore, the company's net income after taxes was $1,232.41.

Read more on income statement here:https://brainly.com/question/15169974

#SPJ1

When developing software or any sort of product or service, there exists a tension between time, quality, and cost. This is referred to as the "triple constraint" or the "project management triangle."

It is a fundamental principle in project management that these three elements are interrelated, and that any changes to one will affect the other two. For example, if you want to reduce the development time, you may need to increase the cost or sacrifice some of the quality. Similarly, if you want to improve the quality, it may take more time and cost more money. It is important for project managers to carefully balance these three factors in order to deliver a successful product or service.

Software is a set of instructions, data or programs used to operate computers and execute specific tasks. It is the opposite of hardware, which describes the physical aspects of a computer. Software is a generic term used to refer to applications, scripts and programs that run on a device.

to know more about software refer here

https://brainly.com/question/15937118#

#SPJ11

The shift from Corporate Planning to Strategy-Making implies a move away from the traditional structure-based approach to a more value-added perspective.

This involves looking at the sources of profit within the firm, rather than outside of it. This shift is also associated with the Resource-based view of the firm, which considers the resources and capabilities of a firm as the primary drivers of competitive advantage and value creation.

This shift away from the structure-based approach to a value-added perspective is important because it allows firms to identify new sources of value and differentiate their offerings from those of their competitors. Additionally, it provides a framework for developing and implementing strategies that are tailored to the firm's particular strengths and weaknesses.

Finally, it enables firms to identify and capitalize on opportunities for growth and expansion.

Know more about  Value creation here

https://brainly.com/question/30368182#

#SPJ11

According to the question, the expected rate of return for Stock B is 2.2% + 0% + 10.5% + 2.9% + 3.7% = 11.30%.

Rate of return is a measure of an investment's performance over a given period of time. It is calculated by dividing the gain or loss on the investment by the original cost of the investment. The rate of return is usually expressed as a percentage. It is used to compare different investments and to measure the performance of an investment portfolio.

The expected rate of return for Stock B is calculated by multiplying each probability by the corresponding return and summing the products.

0.1 x 22% = 2.2%

0.2 x 0% = 0%

0.5 x 21% = 10.5%

0.1 x 29% = 2.9%

0.1 x 37% = 3.7%

Expected rate of return = 2.2% + 0% + 10.5% + 2.9% + 3.7% = 11.30%.

To learn more about rate of return

https://brainly.com/question/1789817

#SPJ1

The discount rate is the interest rate that the Fed charges commercial banks when they borrow directly from the Fed's discount window. It is a tool used by the Fed to provide liquidity to the banking system, and its level influences borrowing and lending decisions by banks. The federal funds rate is not the same as the discount rate, and the Fed does not directly control the discount rate.

The discount rate is the interest rate that the Federal Reserve charges commercial banks to borrow funds from the Fed's discount window. The primary purpose of the discount rate is to provide liquidity to the banking system. When banks face a shortage of funds, they can borrow from the Fed's discount window to meet their reserve requirements and continue their lending operations.

Out of the given statements, the statement that applies to the discount rate is this rate is used when banks borrow directly from the Fed.This is because the discount rate is the interest rate charged by the Fed to commercial banks when they borrow directly from the Fed's discount window.

The federal funds rate, on the other hand, is the interest rate that banks charge each other for overnight loans of their excess reserves. This rate is not the same as the discount rate, as stated in one of the given statements. The Fed sets the federal funds rate through its open market operations, where it buys and sells government securities to influence the supply of reserves in the banking system.

Another statement that is not applicable to the discount rate is ""this rate is charged to depositors who are unable to meet their reserve requirement."" This statement describes the penalty rate that the Fed charges banks for failing to maintain the required level of reserves. The penalty rate is higher than the discount rate and is meant to encourage banks to maintain adequate reserves to meet their obligations.

Lastly, the Fed does not directly control the discount rate, but it does influence it through changes in its monetary policy. When the Fed wants to stimulate economic activity, it can lower the discount rate to encourage borrowing and lending by commercial banks. Conversely, when the Fed wants to slow down the economy, it can increase the discount rate, making it more expensive for banks to borrow from the Fed and reducing the money supply.

Click the below link, to learn more about Federal Reserve:

https://brainly.com/question/23247429

#SPJ11

The statement 'a method estimates benefits as the reduction in spending on goods that are substitutes for a cleaner environment' is True because the method mentioned is known as the "substitution method" and is used to estimate the benefits of a cleaner environment.

The method works by identifying goods and services that can be substituted for a cleaner environment and then estimating the reduction in spending on those goods that would result from the cleaner environment.

For example, if a cleaner environment results in lower levels of air pollution, people may spend less on healthcare costs associated with respiratory illnesses.

Similarly, if cleaner water results in reduced levels of water-borne illnesses, people may spend less on bottled water or water filtration systems.

The substitution method is one of several approaches used to estimate the economic benefits of environmental improvements.

Other methods include the hedonic pricing method, which looks at how changes in environmental quality affect the value of homes and other property, and the travel cost method, which looks at how changes in environmental quality affect the demand for recreational activities.

To know more about cleaner environment here:

https://brainly.com/question/14463912#

#SPJ11

The answer is true. A method calculates benefits by estimating the amount of money saved on products that may be substituted for a cleaner environment.

A cost-benefit analysis is a method for calculating the benefits of a decision or course of action less the expenses related to that decision or course of action. Measurable financial metrics, such as money generated or costs avoided as a result of the project's decision, are part of a cost-benefit analysis. It entails adding up all of the project's discounted benefits over the course of its whole life and dividing that amount by the project's discounted costs. Economically speaking, costs outweigh advantages. The project shouldn't move forward based only on this criterion.

Read more about method estimates at

https://brainly.com/question/31533836

#SPJ4

Today, effective supervisors treat the performance appraisal as both a tool for providing feedback and guidance to their employees, as well as a formal legal document.

This  can be used to document performance, set goals and expectations, and make decisions related to promotions, raises, and other employment-related matters.

Effective supervisors are individuals who possess the skills, qualities, and behaviors necessary to effectively manage and lead a team of employees or subordinates. They play a crucial role in ensuring that the team is productive, motivated, and engaged.

By approaching performance appraisals in this manner, effective supervisors are able to not only provide valuable feedback and support to their employees, but also to ensure that their organization is compliant with legal requirements and best practices related to performance management.

the act of estimating or judging the nature or value of something or someone. an estimate of value, as for sale, assessment, or taxation; valuation. an estimate or considered opinion of the nature, quality, importance, etc: the critics' appraisal of pop art; an incorrect appraisal of public opinion.

to know more about effective supervisors refer here

https://brainly.com/question/8968046#

#SPJ11

The break-even point is the point at which a company's total revenue equals its total costs, resulting in neither a profit nor a loss.

To calculate the break-even point in units, we can use the following formula:

Break-even point (in units) = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Given the information provided:

Selling Price per Unit = $12.22

Variable Cost per Unit = $5.33

Total Fixed Costs = $96,900

Plugging these values into the formula:

Break-even point (in units) = $96,900 / ($12.22 - $5.33)

Break-even point (in units) = $96,900 / $6.89

Break-even point (in units) ≈ 14,063.86

So, the break-even point in units for the company is approximately 14,063.86 units. This means that the company needs to sell at least 14,063.86 units in order to cover its total fixed costs and avoid incurring a loss.

To know more about break-even point visit:

https://brainly.com/question/22871926

#SPJ11

This impact the number of firms in the market, in a way if input costs increase and the market price does not increase in response, firms may exit the market. If input costs decrease, the average cost may decrease, potentially attracting new firms to enter the market.

Changes in input costs can have a significant impact on the long-run average cost per coffee in a perfectly competitive market. For example, an increase in the cost of coffee beans, labor, or rent can increase the average cost of producing coffee.

If the market price of coffee does not increase in response to the increase in input costs, firms may find it difficult to cover their costs, and some may exit the market.

On the other hand, if input costs decrease, the average cost of producing coffee may decrease, allowing firms to earn higher profits and potentially attracting new firms to enter the market.

Learn more about competitive market :

https://brainly.com/question/7024827

#SPJ4

The complete question is :

How do changes in input costs affect the long-run average cost per coffee in a perfectly competitive market, and how does this impact the number of firms in the market?

The effective annual yield on the mortgage with no points is 6%.

To calculate the effective annual yield, we need to consider the interest rate, the number of compounding periods per year, and any fees associated with the mortgage. In this case, there are no points, which are fees paid at closing to lower the interest rate, so we only need to consider the interest rate and compounding periods.

The mortgage has a fixed interest rate of 6%, which means that the interest rate will not change over the 30-year term of the loan. The compounding periods are not specified, but assuming monthly compounding, we can calculate the effective annual yield using the formula:

Effective annual yield = (1 + (interest rate / compounding periods))^compounding periods - 1

Plugging in the numbers, we get:

Effective annual yield = (1 + (0.06 / 12))^12 - 1

Effective annual yield = 6.17%

As a result, the effective yearly return on the no-point mortgage is 6.17%. The real return, however, will be the same as the interest rate, which is 6%, because the interest rate is set and there are no costs.

To know more about the Mortgage, here

https://brainly.com/question/14989714

#SPJ4

Answer to question 24: The highest rating for a bond is AAA. The correct option is a. This rating indicates that the bond is of high quality and has a very low risk of default.

AA is the second-highest rating and indicates a slightly higher risk of default than AAA, followed by A and BBB, which indicate even higher levels of risk.

Answer to question 25: We get an answer of $128,487, rounded to the nearest dollar. To find the present value of the investment, we need to discount each cash flow back to the present using the given discount rate of 7%.

Once we have the present value of each cash flow, we can add them together to get the total present value of the investment. This represents the value of the investment today, given the future cash flows and the specified discount rate.

To know more about bond refer here:

https://brainly.com/question/17405470#

#SPJ11

Your net loss per share to buy and sell XYZ, after considering the commissions and any exchange fees or credits, is -$0.0176.

To calculate your net loss per share, let's consider the commissions and exchange fees or credits.

1. Buying XYZ:
- Execution price: $82.89 per share
- Broker commission: $0.0029 per share
- Exchange fee (adding liquidity): -$0.0155 per share (credit)

2. Selling XYZ:
- Execution price: $82.88 per share (since prices moved down by one cent)
- Broker commission: $0.0029 per share
- Exchange fee (removing liquidity): $0.0173 per share

Now, let's calculate the net loss per share:

Net loss per share = (Execution price of sell - Execution price of buy) - (Total commissions and exchange fees)

Net loss per share = ($82.88 - $82.89) - [($0.0029 + $0.0029) + ($0.0173 - $0.0155)]
Net loss per share = -$0.01 - ($0.0058 + $0.0018)
Net loss per share = -$0.01 - $0.0076

Your net loss per share to buy and sell XYZ, after considering the commissions and any exchange fees or credits, is -$0.0176.

Learn more about net loss: https://brainly.com/question/12112036

#SPJ11

To determine the future return on equity (ROE) when the company's growth rate slows to the industry average in five years, assuming a constant payout ratio, we can use the following formula: ROE = (Growth Rate + Dividend Payout Ratio) / (1 - Dividend Payout Ratio).

Here, the growth rate refers to the industry average growth rate, and the dividend payout ratio remains constant. Carrington and Genevieve can increase the value of their company's stock without selling new shares or borrowing more money by reinvesting profits back into the company, focusing on operational efficiency, or pursuing strategic acquisitions to grow their business.

However, this strategy might not always increase the stock price if the market conditions are unfavorable, the company's competitive position weakens, or if the return on invested capital is lower than the cost of capital.
Read more about company here:https://brainly.com/question/25818989
#SPJ11

When you're stumped for an answer in workplace  to a question, use this tried-and-true "fail-safe" solution.

Think about responding with something like, "That's a good question; can I think about it for a bit and get back to you later?" or "Great query! I can respond to some of it, but I'd like to consider it further and get back to you.

Try saying something like, "That's an interesting question, could I take some time to think it over and get back to you?" or "I can give you a partial answer to that enormous question.

To know more about workplace visit :-

https://brainly.com/question/4675352

#SPJ1

Question:-

How do you respond when you don't know the answer at work?

Based on the information provided, it seems like we have two different ratios for Country A in the years 1990 and 2000. Let's break down the data for a clearer understanding:

1. 90/10 Ratio:
- 1990: 15.7
- 2000: 12.42

2. 50/10 Ratio:
- 1990: 6.43
- 2000: 5.09

Now let's explain the data:

For the 90/10 ratio, in 1990, Country A had a value of 15.7, which means that for every 90 units of a certain factor (e.g. income, resources, etc.), there were 10 units of another factor. By 2000, this ratio decreased to 12.42, indicating that there was a reduction in the disparity between the two factors represented by the ratio.

For the 50/10 ratio, in 1990, Country A had a value of 6.43, which means that for every 50 units of a certain factor, there were 10 units of another factor. By 2000, this ratio decreased to 5.09, again showing a reduction in the disparity between the two factors represented by the ratio.

In conclusion, both the 90/10 and 50/10 ratios show a decrease from 1990 to 2000, indicating a reduction in the disparity between the factors represented by these ratios in Country A.

to know more about ratio refer here

https://brainly.com/question/18956877#

#SPJ11

The value of the stock today is $38.17.

To calculate the value of the stock today, we need to find the present value of all the future dividends and the future stock price.

First, let's find the dividend in year 3.

D3 = $1.75

Next, let's find the dividends in years 4 and 5, which are growing at a rate of 29% per year.

D4 = D3 * (1 + 29%) = $2.26

D5 = D4 * (1 + 29%) = $2.92

After Year 5, the dividends are expected to grow at a constant rate of 5% per year. Let's find the expected dividend in Year 6.

D6 = D5 * (1 + 5%) = $3.06

To find the present value of these future dividends, we need to discount them back to the present using the required return of 14%.

[tex]PV(D3) = $1.75 / (1 + 14%)^3 = $1.1655[/tex]

[tex]PV(D4) = $2.26 / (1 + 14%)^4 = $1.3642[/tex]

[tex]PV(D5) = $2.92 / (1 + 14%)^5 = $1.4466[/tex]

[tex]PV(D6) = $3.06 / (14% - 5%) / (1 + 14%)^5 = $16.1597[/tex]

Now, let's find the present value of the future stock price, which is the present value of the stock price at the end of Year 5.

To find the future stock price, we need to find the dividend in Year 6 and the constant growth rate beyond that year.

D6 = $3.06

g = 5%

The stock price in Year 6 can be calculated using the constant growth model:

P6 = D6 * (1 + g) / (r - g) = $3.06 * (1 + 5%) / (14% - 5%) = $36.72

Now, we can discount this stock price back to the present using the required return of 14% and the number of years to Year 5.

[tex]PV(P5) = $36.72 / (1 + 14%)^5 = $18.0321[/tex]

Finally, we can calculate the value of the stock today by adding up the present value of all the future dividends and the future stock price.

Value of stock today = PV(D3) + PV(D4) + PV(D5) + PV(D6) + PV(P5)

Value of stock today = $1.1655 + $1.3642 + $1.4466 + $16.1597 + $18.0321 = $38.1681

Therefore, the value of the stock today is $38.17.

Learn more about  dividend

https://brainly.com/question/29509520

#SPJ4

The first two statements are true and the last statement is false. Question 10: True. The business firm is a distinctive invention of capitalist societies because it operates independently of the state.

In capitalist societies, the state's role is to regulate and create conditions for businesses to thrive, but businesses operate independently of the state. The business firm is a key institution that drives economic growth and creates wealth in capitalist societies.

Question 11: True. A nation's greatest resource is its human capital, which refers to the knowledge, skills, and abilities of its people.

Human capital is a critical factor in economic development, and countries that invest in education and training for their citizens tend to have higher levels of economic growth and development.

Question 12: False. The Catholic Church does not oppose all forms of liberalism. While it has historically been critical of certain aspects of liberal ideology, such as individualism and secularism, it has also embraced other aspects, such as social justice and human rights.

The Catholic Church's stance on liberalism is complex and has evolved over time, and cannot be reduced to a simple statement of opposition.

To know more about capitalist societies, refer here:

https://brainly.com/question/13840645#

#SPJ11

a. Hubert should purchase an policy because he is not covered under his parents' policy.

c. His computer may not be covered under his parents' policy, so he should consider purchasing additional coverage through an policy.

Genuine Inc issued a 30-year bond that is callable in 5 years. It has a coupon rate of 5.5% payable semiannually, a yield to maturity of 8%, and a call premium of $100. The yield to call is a. 7.59%

The yield to call is the rate of return that an investor receives by investing in a callable bond, which can be redeemed prior to maturity by the issuer. In this case, Genuine Inc. issued a 30-year bond that is callable in 5 years. The bond has a coupon rate of 5.5% payable semiannually, a yield to maturity of 8%, and a call premium of $100.

To calculate the yield to call, we need to subtract the call premium from the yield to maturity. In this case, the yield to call is 7.59%, which is lower than the yield to maturity of 8%. This is due to the fact that the investor will receive the call premium when the bond is redeemed, so the yield to call reflects the lower return that the investor will receive.

Therefore, correct option is A.

know more about callable bond here

https://brainly.com/question/30900930#

#SPJ11

The correct answer is b. Cause marketing.

Cause marketing is a public relations effort that focuses on marketing a product, service, or brand in a way that benefits a charitable cause. The public relations effort helps to increase awareness of the charity's mission and help to build relationships between the charity and the company.

It can also increase sales for the company and help to raise the profile of the charity. Cause marketing typically involves a company making a donation to the charity, or offering some other type of promotional benefit such as discounted prices or special offers. A company may also use cause-related marketing as a way to show its commitment to social issues, such as by supporting a cause that is important to its target audience.

Cause marketing can be a powerful tool for companies to use in order to demonstrate their commitment to social responsibility while also building relationships with customers and other stakeholders.

Know more about stakeholders here

https://brainly.com/question/30463383?referrer=searchResults

#SPJ11