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- What impact does the market for intangible property such as stocks and bonds have on the market for real estate? Why would a real estate investor pay attention to what is happening in these markets? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Consider company ABC. Today it is 1st of January 2023 and ABC has just paid a dividend of £3 million. The expected earnings of ABC for the next 30 years are forecast to grow at a rate of 15% per annum. From 1st of January 2053 and onwards the earnings of ABC are expected to grow at a rate of 5%. The required rate of return of ABC is 12% per annum. The current dividend policy of ABC is such that they pay out 50% of its earnings as dividends (assume that they pay their dividends on 1st of January every year). a) Suppose that the dividend payout ratio is expected to stay constant in the future. What is the value of ABC stock? Show and explain your calculations and any assumptions you make. b) Just after the dividend payment on 1st of January 2043, ABC is planning to reduce their dividends and only pay out 40% of its earnings. What is the value of ABC under the new dividend policy? c) Provide a recommendation to the management of ABC as to whether they should increase/cut back on…What is capital recovery? A.The income recognized from insurance proceeds received after a capital asset is lost due to a casualty such as theft or fire. B. Matching the income you make from using capital assets with the expenses representing the use of the assets producing the income. C.Using a capital asset that had been previously taken out of service, but is now in use again. D. When the cost of capital assets exceed the gross revenue in the acquisition year.
- list 5 K The effective interest rate is calculated as the total interest earned during the year divided by the beginning balance of the investment as the first of the year. O True O False ..The Rosy company, is planning to start an egg packing factory in the country of Bevery. The initial investment for the egg packing factory is $5Million and it will generate net revenues for every year for the next 10 years starting as $1M in the first year, and increasing by $0.5Million every year (e.g, 1M, 1.5M, 2M, 2.5M...). Currently £1 is equal to $20. However, the $ is being devalued (losing value) against the £ by 12% every year (so next year £1 will be $22.4 ). If Rosy company has a MARR of 30% in Bevery, what is the PW of this egg packing factory in £?A share of stock currently costs $35. You can purchase either the shares, or options to buy the stock anytime this year at $38.50. These options cost $0.75 per. What price must the stock rise to this year to make the stock options equally profitable (meaning equal capital gain) to purchasing the stock? (Assume you exercise the options/sell the stock at this price.) What price must the stock rise to this year to make purchasing the stock options 6 times as profitable (meaning 6 times the capital gain) as purchasing the stock?
- Suppose a bank offers you the following two year, non-cashable GICs (i.e., withdrawals are not allowed). The first one pays a monthly rate of return 0.245%, the second one pays a semi-annual rate of return of 1.47% and the third one a return of 2.75% for the first year and 3.25% for the second year. All interest payments are reinvested.(a) Which investment would you prefer?(b) Suppose you expect that interest rates decline to 3% after the first year. How does your answer change, if the two year GIC pays out the first interest payment (but not the principal) at the end of the first year?What is the present value of $1.21 received at the end of two years if the interest rate is 10% and compounding is annual? a- 1.31 b- 1.21 c- 1.10 d- 1.00 Which of the following is a leading economic indicator? a- average prime interest rate charged by banks b- stock prices, 500 common stocks c- commercial and industrial loans outstanding d- industrial productionA company invests $6,250 at the beginning ofa seven-year project. At the end of every year forthe first five years, the project generates $1,550. Atthe end of the sixth year, the project generates nomoney. At the end of the seventh year, the project isterminated. How much must the project generate atthe end of the seventh year to realize 14% return onthe initial investment?
- $4250 is invested for 6 years and grows to $14 740. Find the interest rate if interest is compounded continuously. Find the future value of investment of 5000 at a 5% interest rate for 5 years if it is compounded continuously. Given the profit function ⫪=25X –X2 – XY – Y2 +30Y – 28 -find the level of output that maximizes profit, - test the second partial condition, and - evaluate the function at the critical values X and Y.Racine Tire Co. manufactures tires for all-terrain bicycles, The tires sell for P60 and variable cost per tire is P45; monthly fixed cost is P450,000. Requirement: 1. Calculate the firm's break-even point in sales pesos 2. What will be the new net income? 3. If the company can increase sales volume by 15 percent above the current level, 8,400,000 tires monthly What will be the increase in net income?PMF, Inc., is equally likely to have EBIT this coming year of $10 million, $15 million, or $20 million. It's corporate tax rate is 40%, and investors pay a 10% tax rate on income from equity and a 40% tax rate on interest income. What is the interest tax shield if PMF has interest expenses of $5 million this coming year? A. $2 million B. $4 million C. $0.3 million D. $2.25 million