A stock sells for $2,000, pays $30 in dividends and grows at 3% annually.
a. What is the interest rate?

b. If the Risk free rate is 2%, what is the risk premium?

Answers

Answer 1

Answer:

a. The interest rate is 3%

b. The risk premium is 1%

Explanation:

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Answer 2

a. The interest rate is 4.5%, and

b. If the Risk-free rate is 2%, then the risk premium in the stock is 2.5%.

a.

Given:

Stock Price (P) = $2,000

Dividends (D) = $30

Growth Rate (g) = 3%

Required to find interest rate (r) =?

Stock Price = Dividends / (Interest Rate - Growth Rate)

$2,000 = $30 / (r - 0.03)

r - 0.03 = $30 / $2,000

r - 0.03 = 0.015

r = 0.015 + 0.03

r = 0.045

The interest rate for the stock is 4.5%.

b.

Given:

Risk-free rate = 2%

Interest rate (required rate of return) from part a = 4.5%

Required to find risk premium =?

Risk Premium = Interest Rate - Risk-free rate

Risk Premium = 4.5% - 2%

Risk Premium = 2.5%

When compared to a risk-free investment, such as a government bond, the excess return an investor anticipates receiving for taking on the risk of investing in a specific stock is known as the risk premium.

Therefore, the interest rate and risk premium are 4.5% and 2.5% respectively.

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Related Questions

In what ways does economic development initiatives impact the people, culture, and/or environment of a place if not handled carefully?

Answers

The environmental impact of economic growth consists of the multiplied intake of non-renewable sources, higher stages of pollution, international warming and the capability lack of environmental habitats. But, now not all forms of financial boom motive harm to the surroundings.

On common, cultures with a higher awareness of values recognized as an achievement orientation, relative to attention of values supported with a constrained excellent notion, enjoy extra rapid monetary boom. In countries wherein independence is emphasized in children's upbringing, the economic system will develop quicker.

Similarly to its intrinsic cost, lifestyle presents important social and financial advantages. With stepping forward mastering and health, increased tolerance, and possibilities to come back together with others, tradition complements our first-class of existence and will increase general nicely-being for each people and group.

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factors retailers should consider when setting the advertisement including market competition

Answers

Answer:

fffgg

Explanatio

The interpersonal perspective on authentic leadership views leadership as

A). a leader's collection of life experiences

B). something that develops over a leader's lifetime

C). a skill set that is influenced by a leader's personality traits

D). emerging out of the interactions between leaders and followers

Help me ASAP!! Which one!

Answers

D).
Because interpersonal means between 2 or more people.

Laura explains to Ayla that she wants the new front desk employee to be cross-trained in order to expand collective skills and ensure team members have experience in other areas, especially as the business continues to grow. With this plan in place, Laura is confident in her decision to retire; she knows the business will be in good hands.

Select the option that is NOT a benefit of cross-training.

a.)
Team members can be given overlapping responsibilities, enabling duplication of effort.
b.)
Team members gain an improved understanding of the connections between roles.
c.)
The team becomes more flexible and agile.
d.)
Individual engagement level is improved, reducing the risk of boredom.

Answers

a.)Team members can be given overlapping responsibilities, enabling duplication of effort is NOT a benefit of cross-training.

The definition of a member is a part of a collection, device or entire. An instance of a member is the drummer in a band. An instance of a member is the toe on a foot.

A member of a group is one of the human beings, animals, or things belonging to that institution. He refused to call the individuals of workforce involved.

A member is one of the organisation's owners whose name has been entered at the register of participants. individuals delegate positive powers to the company's directors to run the corporation on their behalf.

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Assume you invest R100,000 at the start of year 1, calculate the total interest earned using the effective interest rate/ NACA over the 5-year period.

Answers

Effective Rate per Period:

I = 100000%

Effective Rate for 5 Periods:

It = 1.005010010005E+17%

Rate per Compounding Interval:

P = 100000%

What formula is used to calculate interest over a year?

To determine A, the Final Investment Value, using the simple interest calculation, use the following calculator: A is equal to P(1 + rt), where P is the principal sum of money to be invested, and rt is the number of time periods, and % represents the interest rate each period.

How can you figure out interest that has been accumulated over time?

Use the following formula to determine the interest earned on savings over a specific time period: Principal x Rate x Number of Periods equals interest.

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What is the difference between ethnocentrism and patriotism?

Answers

Explanation:

Ethnocentrism is the tendency to look at the world primarily from the perspective of one's own culture while patriotism is love of country; devotion to the welfare of one's compatriots; the virtues and actions of a patriot; the passion which inspires one to serve one's country,.

The money left after production costs are subtracted from revenue is called?

Answers

Answer:

Gross Profit

Explanation:

"Gross profit is the income that is left after production costs have been subtracted from revenue, and helps investors determine how much profit a company earns from the production and sale of its products"

-Investopedia

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Describe the long-run impact of a decline in defense spending by 1 percent of GDP on interest rates and on consumption, investment, and net exports as a share of GDP. Consider the following case:

The funds saved from the defense cut are used to increase government expenditures on roads and bridges.

Select all that are true.

Responses

There is no effect.
There is no effect.

NG/Y* increases as the real interest rate declines.
NG/Y* increases as the real interest rate declines.

The increases in C/Y*, I/Y*, and X/Y* depend on the sensitivity of each to the interest rate.
The increases in C/Y*, I/Y* , and X/Y* depend on the sensitivity of each to the interest rate.

All of the variables increase as the real interest rate declines.

Answers

Answer:

The long-run impact of a decline in defense spending by 1 percent of GDP on interest rates and on consumption, investment, and net exports as a share of GDP would be an increase in NG/Y* as the real interest rate declines. The increases in C/Y*, I/Y*, and X/Y* would depend on the sensitivity of each to the interest rate. All of the variables would increase as the real interest rate declines.

Explanation:

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Which symptom is characteristic of someone on a hallucinogenic drug?

Answers

Answer: Hello: distorted visual and auditory perceptions.) Hallucinogens are a diverse group of drugs that alter perception, thoughts, and feelings. They cause hallucinations, or sensations and images that seem real, but they are not and also, Loss of interest in enjoyable activities. Agitation. Mood swings. Social withdrawal.

Symptoms can include nightmarish hallucinations, extreme panic, paranoia and nausea. It is also possible to have a mixture of good and bad experiences in the one trip. Other unpleasant side effects can include: muscle spasms and loss of coordination.

Have a Great afternoon <3

A hallucinogenic drug user will typically exhibit altered reality perceptions, such as the ability to see, hear, or feel things that are not actually there.

In addition to making a person feel disassociated from their body and surroundings, hallucinogenic drugs can also result in hallucinations, an altered sense of reality, an elevated heart rate, decreased appetite, trouble sleeping, dry mouth, panic, sweating, problems with coordination, "spiritual" experiences, psychosis, mood swings, and nausea.

When using illegal drugs like amphetamines, cocaine, LSD, or ecstasy, people may have hallucinations.

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The commissioner obtains a restraining order against a person who has violated an insurance law. The person continues the violation for 10 days. The person has to pay a fine of, how much?

Answers

Based on the fact that the person continued to violate the restraining order, the fine that the person has to pay is $0.00.

How much should the person pay?

When a restraining order is issued for insurance law, there is a period of 10 days that the fines would not take effect in.

This means that the person can keep committing the violation within those ten days without having to pay any fines so the amount this person will pay is $0.00.

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In North America, keeping people waiting for a business appointment is considered rude.

Individualism
Context
Communication style
Time orientation

Answers

In North America, keeping people waiting for a business appointment is considered rude. North Americans consider time a precious commodity.

participants of low-context cultures, mainly North Americans, keeping human beings looking ahead to business appointments wastes time and is likewise impolite.

North Americans united states is a continent inside the Northern Hemisphere and almost totally in the Western Hemisphere. it's far bordered to the north through the Arctic Ocean, to the east with the aid of the Atlantic Ocean, to the southeast by way of South us and the Caribbean Sea,

The time period of North America refers back to the northern portion of the continent. It includes the world's biggest island Greenland and the sovereign states of Canada, America, and Mexico. approximately 498 million people stay in Northern America in 2019.

North America, the third-biggest continent, extends from the tiny Aleutian Islands in the northwest to the Isthmus of Panama in the south. The continent includes the good-sized island of Greenland in the northeast and the small island nations.

The North American continent of the Western Hemisphere extends northward from the Colombia-Panama border and consists of valuable us, Mexico, the islands of the Caribbean Sea, the united states, Canada, and Greenland.

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All of the following companies are prominent examples of data aggregators who
create digital dossiers by collecting public data and non-public data except:
1) Grubhub
2) Acxiom
3) LexisNexis
4) ChoicePoint

Answers

All of the following companies are prominent examples of data aggregators who

create digital dossiers by collecting public data and non-public data except option 1. Grubhub.

Grubhub Inc. is an American online and mobile prepared food ordering and delivery platform. The company is located in Chicago, Illinois and was established in 2004. Grubhub is a subsidiary of the Dutch company. It is a fastfood company.

What is a digital dossiers?

A digital dossiers is a digital footprint. It is also known as a digital dossier. A digital dossiers is the body of data that exists as a result of actions and communications online that can in some how be traced back to an individual. Digital dossier can be broken down into active and passive data traces.

Therefore, the correct answer is option A. Grubhub.

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How does quality management enhance market shares

Answers

Answer:

Improvements in performance, features, or other dimensions of quality lead to increased sales and larger market shares. Quality management helps companies improve their products' reliability, durability and performance. These factors help differentiate a business from its competitors.

How does the total size of expenses in a third-party payer marketplace compared to the total size of expenses in a third-party payer marketplace?

Answers

The person receiving the goods and the person making the payment are different in third-party-payer markets.

What is considered a third-party marketplace?

Existing platforms known as third-party marketplaces enable vendors to list their goods or services for sale via the website or application of a third party.

The federal government offers Medicare, the largest third-party payer. Depending on what each portion covers, Medicare is divided into various parts. Medical coders must be aware of the rules that payers and governments must follow, as well as which insurance plans accept specific codes.

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Mohammed owns a bakery. He makes bread and cakes. He employs three
workers who help him mix the dough for the bread and cakes, put the dough
into tins, bake the bread and cakes and serve customers. Mohammed has
calculated that the 'added value' of his business is low. His customers complain
when he tries to put up prices. 'We can buy the same bread and cakes at lower
prices' they tell him.
a) What is meant by 'added value'?
b) Mohammed has just bought a new oven. Explain 'opportunity cost' to
Mohammed.
c) Identify and explain two benefits to Mohammed's business of all of his
workers being able to do all of the jobs in the bakery.
d) Identify and explain two ways in which Mohammed could increase
the value added of his bakery business.
e) A friend told Mohammed 'Your business would be more successful if
you only served in the shop and let your workers make the bread and
cakes'. Do you agree? Justify your answer.

Answers

Mohammed just purchased a brand-new oven. To Mohammed, elucidate "potential cost.

What is opportunity cost and how does it work?

The opportunity cost is the lost study time and money that could have been used for something else. A farmer decides to sow wheat; the opportunity cost is not doing so or using the resources in a different way (land and farm equipment). Instead of driving to work, a commuter rides the train.

What does opportunity cost mean in its simplest form?

The word "opportunity cost" in economics describes the worth of what you must forgo in order to chose something else.

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Annie's Fitness sells a set of free weights to a customer for which Annie's had paid $750. Which one of the following statements describes the most appropriate accounting for the transaction?

a) Debit cost of goods sold expense $750; credit cash $750

b) Debit inventory $750; credit cost of goods sold expense $750

c) Debit cost of goods sold expense $750; credit inventory $750

d) Debit inventory $750; credit accounts payable $750

Answers

The most appropriate accounting for the transaction for Annie's Fitness was c) Debit cost of goods sold expense $750; credit inventory $750

How should sales be treated?

When a company such as Annie's Fitness makes a sale, the revenue account is to be credited and the cash or accounts receivable account will be debited.

Another entry would have to do with the cost of goods sold which would be debited by the cost of the stock that the business just sold. Inventory would then be credited as double entry.

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Based on what you know about Mark what advice can you offer him that will help him to save the farm?

Answers

Answer:

I don't know for sure but I think the answer is C because it seems like the most reasonable answer

Explanation:

Hope this helps:)......if not then sorry for wasting your time and may God bless you<3

28) LMX theory is primarily concerned with how well leaders and followers ______.

A) maintain high commitment levels

B) achieve work-related goals

C) work together

D) create peer relationships

Which is correct!

Answers

LMX theory is primarily concerned with how well leaders and followers create peer relationships. Option D is an appropriate response.

What is LMX theory?

Leader–member exchange (LMX) theory, enables leaders to develop different quality relationships with followers in their team.

The focus in LMX theory is on how leaders and followers engage together to generate high quality work relationships that allow them to produce effective results.

It is a relationship based approach that enables to create peer relationships in the workplace to achieve work related goals. It is concerned  the importance of communication in leadership by the . Leaders and followers can develop, evolve, and continue mutually beneficial exchanges through communication.

Hence, Option D is an appropriate response.

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38). An out-group member would most likely be characterized by which type of behavior?

A). creative and innovative ideas

B). willingness to negotiate behaviors

C). desire to go beyond prescribed roles

D). strict adherence to role responsibilities

Which is correct?!

Answers

Creative and innovative ideas. They discovered that they could ride bikes without exerting any more effort when the motorcycle was invented because all they needed to do was click a switch, and it would start on its own. In this case, creativity refers to the idea of creating a new touring motorcycle, while innovation refers to its actual invention.

People strive to become more innovative and creative so they can observe the world from new perspectives and come up with ideas to change or add to it. They must be employed consciously in order to produce anything useful or genuine ideas because they are active traits.

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A company is hiring a new senior manager. Which best describes why they
would want her to take a leadership style test?
A. To be sure her leadership style will fit into the company
B. To assess her character and competence
C. To test for traits that predict criminal behavior
D. To be sure she has enough
leadership experience for the job.

Answers

Answer:

To be sure she has enough leadership experience for the job.

Explanation:

when a manger is join as a member to assist the company he or she should have an experience the job first.

What is the impact on the national saving rate if the consumption and government share each increase by 5%?

Answers

Answer:

If the consumption and government share each increase by 5%, the national saving rate will decrease by 2.5%.

Explanation:

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Bill George suggests that spending time with diverse others and taking part in community service helps a person develop which characteristic of authentic leadership?

A). consistency

B). connectedness

C). compassion

D). passion

Which one makes sense? Help me on test!!

Answers

D because it shows you care

Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $53. The stock will pay a dividend at year-end of $2.30. Assume that risk-free Treasury securities currently offer an interest rate of 2.3%.

Answers

Based on the risk-free rate, the ending price of the similar stock, and the year end dividend, the price of the stock is $40.32.

What is the price of the stock?

First, find the discount rate as:

= risk free rate + risk premium

= 2.3% + 7.6%

= 9.9%

The price of the stock is:

= (2.30 + 53) / (1 + 9.9%)

= $40.32

In conclusion, the price of the stock is $40.32.

Rest of the question is:

Find the price of the stock

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QUESTION 4
Will a 15% credit card rate cap likely make it easier or harder for low income Americans to obtain a credit card?
A. it will have no impact on low income Americans
B. It will affect all income groups equally
C. harder
D. easier

Answers

Indeed, a 15% credit card rate cap will likely make it D. easier for low-income Americans to obtain a credit card.

What is a credit card rate cap?

A credit card rate cap is a limit or ceiling placed on credit card rates.  According to the Card Act, there is no credit card rate cap.

In 2022, the average credit card interest rate is 16.65%. In 2020, the average credit card interest rate was 20.5%.

With a credit card rate cap, borrowers' (cardholders') liability rates for interest expenses will be limited. However, higher interest rates are meant to discourage non-payment.

With a rate cap, there will be a limit to which credit card rates can adjust higher during the adjustment period.

Low-income Americans will be enabled to borrow on credit cards, knowing that there exists an upper limit to which the credit can be subjected to interest rates.

Thus, the advantage of a 15% credit card rate cap is Option D.

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What are four cWhy is time of the essence? What small change do you need to implement immediatelyauses of loss in job satisfaction

Answers

The phrase “time is of the essence” means that timing is the material to the performance of the contract.

Who use the phrase “time is of the essence”?

"Time is of the essence" phrase is a term that is used in the contract law in England and Wales. Canada, Australia, New Zealand, other Commonwealth countries as well.

The phrase "time is of the essence" comes from the construction of the transcontinental railroad. At that time, the project was considered impossible in construction, many people were sure it could be done.

A person should set clear expectations, goals and objectives with the proper timeline in order to increase job satisfaction.

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Explain the difference between ethics and morals and describe the relationship between the two

Answers

Explanation:

Ethics and morals relate to “right” and “wrong” conduct. While they are sometimes used interchangeably, they are different: ethics refer to rules provided by an external source, e.g., codes of conduct in workplaces or principles in religions. Morals refer to an individual's own principles regarding right and wrong.

Ethics and morality are concerned with "good" and "wrong" behavior. While the terms are frequently used interchangeably, they are not the same:

Ethics refer to regulations supplied by an external source, such as workplace standards of behavior or religious precepts.

Morals are an individual's own ideas of good and evil.

What are the similarities between ethics and morals?

Both phrases are used to denote a tight line between what acts are regarded good and what are considered evil.

Both ethics and morality work together to accelerate the learning of desirable behaviors. Both ideas may help anyone become a better person.

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Which of the following is an example of a trend in ethics and social responsibility?

O strategic giving
O the addition of a fifth level to the social responsibility pyramid
O limits placed on employee empowerment
O decreased concern about international ethics
O all of the above

Answers

Strategic giving can be defined to be an example of a trend in ethics and social responsibility.

What is ethics and social responsibility?

This can be defined as the ethical theory that has it that people should have to be held accountable for the ways that would have to fulfill their civic duties. It has to do with all of the actions that a person would perform in the society that is capable of benefitting the entire society at large.

Hence we can say that strategic giving can be defined to be an example of a trend in ethics and social responsibility.

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A meeting of the minds refers to

Answers

A meeting  of minds refers to an agreement between two or more parties where they promise to either do something, or not to do it.

What is a meeting of minds?

A meeting of minds refers to when two or more parties come together to make an arrangement regarding a subject of interest to all of them.

In this meeting of minds, an agreement is struck between the parties that defines their roles. This therefore means that all parties will promise to do certain things and to avoid others.

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What impact will increase consumer confidence have on equilibrium?

A. GDP will go up, unemployment will go up, and inflation will go up.
B. GDP will go up, unemployment will of down, and inflation will go up.
C. GDP will go down, unemployment will go up, and inflation will go down.
D. GDP will go down, unemployment will go down, and inflation will go down.

Answers

The impact that an increase in consumer confidence have on equilibrium is B. GDP will go up, unemployment will go go down, and inflation will go up.

What is consumer confidence?

Consumer confidence is a type of economic indicator that gauges how optimistic people are about both their individual financial conditions and the state of the economy as a whole.

An economic indicator is consumer confidence. It gauges consumers' level of assurance over the general health of the economy. It also gauges the degree of assurance people have in the steadiness of their income. Their level of confidence affects their financial choices, including their spending behavior.

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describel 2 faxtorswe should consider when evaulatingva argument​

Answers

Clarity and relevancy are two things to look at while analyzing an argument. Clarity is necessary so that we can correctly recognize each premise and the argument's conclusion.

What usually happens as the initial stage in examining an argument?

Establishing an inference connection is the initial stage in the evaluation of an argument. Asserting premise acceptance is the next stage. The first two things to consider are (1) Is this argument true? and (2) Is this argument sound or not?

Why is argument analysis crucial?

Analyzing and exercising critical thought are necessary to judge the validity of these claims. You will, nonetheless, be much more able to understand what the text is attempting to convey and whether you concur with it if you evaluate what you have read.

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Conflicts between a character and something outside that character are called:external conflictsdangerous conflictsinternal conflictsrealistic conflicts A drawing with very short, overlapping lines outlining bodies and a vase. this drawing by pablo picasso is an example of a _________________. a. silverpoint c. sketch b. charcoal d. print please select the best answer from the choices provided a b c d PLEASE SOMEONE HELP ME SOMEONE WHO KNOWS Slaughterhouse 5 What is ironic about Bertram Copeland Rumfoord?Select one:a. He has never served in a war.b. He has never served in the military.c. Hes 70 but doesnt care about the past.d. Hes 70 but is married to a 23-year-old. The formula I = W/R gives the electric current I in amperes that flows through an appliance, where W is the power in watts and R is the resistance in ohms. Which set of numbers best describes the value of I for the given values of W and R ? W=500, R=100 Which pillar represents the ability to run and monitor systems to deliver business value, and to continually improve supporting processes and procedures? Read this sentence from Paragraph 4 of the passage.At lunch, Alma sat across from me, even though by then several other regular volunteers had arrived and offered to take her out for real food rather than subjecting her to the cafeteria fare.What does the word subjecting mean in this sentence?ResponsesA. giving someone nourishmentB. causing someone to suffer through unpleasantnessC. teaching someone a particular discipline, such as nursingD. forcing someone under your control 5. An adaptation is an inherited characteristic that helps an organismsurvive and reproduce in its environment. Over time, adaptationsbecome more and more common in the population. For example,suppose that the water in a pond gets darker over a period of fouyears. The diagrams and table below show what might happen to afrog population living in the pond. Escribe una oracin con las palabras comitiva, escrupulosa, veraz y autntica. One of your closest fish relatives is the coelacanth. where is its equivalent to your forearm? Times between bus arrivals are exponentially distributed with mean = 15 minutes (lambda = 1/15). you have been waiting for 10 minutes. what is the expected time until the bus arrives? How many different signals can be made with 5 flags from 8 flags of different colors? which is the greatest adversary of recorded detail? More than 80% of all computer viruses are caused by macro viruses. What programs are most likely affected by a macro virus?. Ali bought three pieces of fruit with the following weights, 8.712 grams, 14.125 grams, and 21.926 grams. What is the best estimate for the total weight of the fruit? There are three bowling balls. The balls average 14 pounds. The first ball weighs 12 pounds. The second ball weighs 15 pounds. How much does the third ball weigh?Enter your answer in the box as a whole number. Will give brainlyist Please Help Me With This Problem: Which details from the passage describe Thomas Jefferson? Check all that apply. -He said that slavery was a problem. -He joined the abolitionist movement. -He supported the idea of equal rights. -He owned hundreds of enslaved people. -He operated a business in the slave trade What is the primary purpose for conducting a comprehensive developmental evaluation for an elementary student who has a learning disability? How did Industrial Working conditions contribute to the growth of the Labor Movement? What is the equation of the line that passes through the point (6, 1) and has a slopeof-5/6