1. Estimate of the risk-free rate pf interest ("U.S. 10-year Treasury" bond rate = 4.78%. Assumed Market Risk Premium = 7.5%. 2. IBM Stock Information a. IBM’s Beta = 1.64 b. IBM’s current annual dividend = $0.80 c. IBM’s 3-year dividend growth rate (g) = 8.2% d. Industry P/E = 23.2 e. IBM’s EPS = $4.87 3. With the information you have‚ use the CAPM to calculate IBM’s required rate of return or ks. CAPM: ks = RF +{ (kM Krf) x Beta} = ks = 4.78% + {7.5% x 1.64) = 17.08% ks
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character‚ Shift from The Last Battle‚ by C.S Lewis‚ is very different. Shift is an ape. Shift is old and clever. He is not very nice and cares about himself mostly. He is very cleaver but I also think he is not as cleaver as the book‚ The Last Battle portrayed him. If he was the cleverest he would have known that treating Shift rudely would not have been a good idea. I think people saying he his the oldest and cleverest just gets in his head too much. Shift is very cleaver in other parts of the
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Country Report: Belgium Assignment: Global Macroeconomics and Business Environment 1. Executive Summary The purpose of this paper is to give a brief presentation of the current situation of the Belgian economy‚ its challenges and prospects and to recommend policies to tackle these challenges. The Belgian economy is stumbling. Belgium almost entered into a recession in 2012 and the GDP trend is negative. Consumer spending is low. Government spending and investment spending
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Literary analysis “The open boat” Determination was what the sailors from “The open boat had‚” with their drive into finding land and there hope into finding shore would they not give their lives into the cold heartless ocean. Days after days of seeing the ocean at its worst and days with no food could they only have hope and determination to finding land and being safe? As weak as they were they relied on each other to get through it. With the captain being emotionally distraught about losing
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HIGHER EDUCATION: THE IGNOU INITIATIVES Vision Statement of IGNOU “Indira Gandhi National Open University‚ the National Resource Centre for Open and Distance Learning with international recognition and presence‚ shall provide seamless access to sustainable and learner-centric quality education‚ skill upgradation and
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Hicks 1 August 16‚ 2012 Can we decrease homelessness? The essay “A Modest Proposal” by Jonathan Swift is a brutal satire in which he suggests that the poor families should kill their young children and eat them in order to eliminate the growing number of starving citizens. At this time there was extreme poverty and a wide gap between the poor and the rich‚ the tenements and the landlords. Throughout the essay Swift uses satire and irony as a way to attack the indifference between classes
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CHAPTER 5 The Open Economy Questions for Review 1. By rewriting the national income accounts identity‚ we show in the text that S – I = NX. This form of the national income accounts identity shows the relationship between the international flow of funds for capital accumulation‚ S – I‚ and the international flow of goods and services‚ NX. Net capital outflow refers to the (S – I) part of this identity: it is the excess of domestic saving over domestic investment. In an open economy‚ domestic saving
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a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications‚ components and materials‚ incorporated software‚ user friendliness or other functional characteristics. Process innovation: implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques‚ equipment and/or software. The customer does not usually pay directly
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DETERMINANTS OF EXCHANGE RATE FLUCTUATIONS FOR VENEZUELA: APPLICATION OF AN EXTENDED MUNDELL-FLEMING MODEL HSING‚ Yu* Abstract Applying and extending the Mundell-Fleming model‚ this study attempts to examine the behavior of short-term real exchange rates for Venezuela. It finds that the real effective exchange rate is positively associated with real government deficit spending and negatively influenced by real M2‚ the world interest rate‚ county risk‚ and the expected inflation rate. Hence‚ the authoritie
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Production Possibilities Curve Unit 1 : Macroeconomics National Council on Economic Education http://apeconomics.ncee.net Production Possibilities Curve Constant Opportunity Cost Decreasing Opportunity Cost Unit 1 : Macroeconomics National Council on Economic Education http://apeconomics.ncee.net Absolute Advantage and Comparative Advantage • ABSOLUTE ADVANTAGE One individual or nation can produce more output with the same resources as another individual or nation. • COMPARATIVE ADVANTAGE
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