$1.25 - $45)/$45 = 0.1167 or 11.67%. c. Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue to hold it? The answer does not depend on whether you sell the stock or hold it. P6-2: A financial adviser claims that a particular stock earned a total return of 10% last year. During the year the stock price rose from $30 to $32.50. What dividend did the stock pay? 0.10 = ($32.50 + D - $30)/$30 which means D = $0.50 Chapter 7 P7-1:
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Chapter 6 Interest Rates Learning Objectives After reading this chapter‚ students should be able to: List the various factors that influence the cost of money. Discuss how market interest rates are affected by borrowers’ need for capital‚ expected inflation‚ different securities’ risks‚ and securities’ liquidity. Explain what the yield curve is‚ what determines its shape‚ and how you can use the yield curve to help forecast future interest rates. Chapter 6: Interest Rates
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TREASURY BILLS Treasury bills are instrument of short-term borrowing by the Government of India‚ issued as promissory notes under discount. The interest received on them is the discount which is the difference between the price at which they are issued and their redemption value. They have assured yield and negligible risk of default. Under one classification‚ treasury bills are categorised as ad hoc‚ tap and auction bills and under another classification it is classified on the maturity period
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ALTERNATIVE PROBLEMS AND SOLUTIONS ALTERNATIVE PROBLEMS 5-1A. (Compound Interest) To what amount will the following investments accumulate? a. $4‚000 invested for 11 years at 9% compounded annually b. $8‚000 invested for 10 years at 8% compounded annually c. $800 invested for 12 years at 12% compounded annually d. $21‚000 invested for 6 years at 5% compounded annually 5-2A. (Compound Value Solving for n) How many years will the following take? a. $550 to grow to $1‚043.90 if invested
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1.1 Living with dementia can mean people have difficulty with communication‚ how much it will change somebodies communication skills will vary from one person to another. The person may struggle to find words and more often – names‚ due to memory loss‚ or communication may be hindered if the person is in pain‚ has had a stroke‚ or is experiencing side effects from medication. But just because someone is no longer able to speak in a ‘normal’ way‚ does not mean they will no longer be able to communicate
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What will your outlook towards maintenance of liquid assets to ensure that the firm has adequate cash in hand to meet its obligations at all time ? In business‚ economics or investment‚ market liquidity is an asset’s ability to be sold without causing a significant movement in the price and with minimum loss of value. Money‚ or cash‚ is the most liquid asset‚ and can be used immediately to perform economic actions like buying‚ selling‚ or paying debt‚ meeting immediate wants and needs. However‚
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C. George (Controls) Ltd manufactures a thermostat that can be used in a range of kitchen appliances. The manufacturing process is‚ at present‚ semi-automated. The equipment used cost £540‚000 and has a carrying amount of £300‚000. Demand for the product has been fairly stable and output has been maintained at 50‚000 units a year in recent years. The following data‚ based on the current level of output‚ have been prepared in respect of the product: Using existing equipment Per unit
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MBA 579 Homework Assignment 4-2 True/False Indicate whether the statement is true or false. ____ 1. The tighter the probability distribution of its expected future returns‚ the greater the risk of a given investment as measured by its standard deviation. ____ 2. The standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities being compared differ significantly. ____ 3. An individual stock’s diversifiable risk‚ which
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Career preferences and the factors influencing their selection in fourth year medical students in the University of Colombo H D Tennakoon‚ A K Vidanapathirana‚ S Sutharsan AL 1999 batch of students‚ Faculty of Medicine‚ University of Colombo Abstract Objective: To identify post intern career preferences and factors influencing their selection in fourth year medical students of the University of Colombo. Design and setting: A descriptive cross sectional study was carried out among 200 fourth
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Financial Management Thursday 9 June 2011 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Formulae Sheet‚ Present Value and Annuity Tables are on pages 7‚ 8 and 9. Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed
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