Suppose that the initial dividend on a stock is £1. The interest rate is 3 percent and the growth rate of dividends is constant at 2 percent. What is the price of the stock?

Q: Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures…

A: Bond: It is a fixed income instrument that represents a loan made by an investor to a borrower. We…

Q: According to the efficient market hypothesis, the way to get a good return in the stock market is…

A: Share prices, according to the efficient market hypothesis (EMH) or theory, accurately reflect all…

Q: the change in stock if:- Closing stock = $3200 Opening stock = $1300

A: A stock or equity is a security that addresses the responsibility for part of an organization. This…

Q: Calculate the change in stock given that opening stock is $60 million and closing stock is $77…

A: The data presented in the question above is:- Opening stock = $60 million Closing stock = $77…

Q: Explain why negative real interest rates cannot exist in an economy that is properly functioning

A: When interest is given to borrowers rather than lenders, it is referred to as having a negative…

Q: Find change in stock if opening stock is $40,000 and closing stock is $76,000?

A: As per the question we are given that  opening stock = $40,000 closing stock = $76,000 we have to…

Q: The price these buyers are willing to pay for the stock is called

A: Stock is a investment that is made by thr investor in order to earn great returns in future.

Q: Which of the following terms is associated with giving up the chance to earn a return on investment…

A: Cost describes the expenditure or outflow of money from the organization when making various…

Q: Calculate value of output if sales is $24,000 and the change in stock is $10,000

A: The data presented in the question above is:- Sales = $24,000 Change in stock = $10,000 We need to…

Q: Why India is considered an emerging market( in terms of stock market and index) ? 250 words

A: Emerging sectors of the nation are developing economies with less developed economic and legal…

Q: would bonds still be a good option for investment if interest rates are negative?

A: Negative-yielding bonds are monetary instruments that cause buyers to lose cash.  They are typically…

Q: Why is it hard to forecast future movements in stock prices?

A: Stock prices: The stock prices are the current prices that a share of a stock is trading in the…

Q: The equilibrium price of a bond that pays three coupon payments of $1,200 each for the next 3 years…

A: The annual interest rate paid on a bond expressed as a percentage of the face value and born from…

Q: Which of the following represents stock variables?  (a) Wealth, saving and unemployment; (b) Gold…

A: The stock variables are those variables which measure at a specific point of time. For example, the…

Q: What is the average price you paid per share of stock?

A: Solution: Given Data      Total shares = 3400     1300 shares of stock at $17 per share    1000…

Q: The relationship between the price of the bond and the market rate of interest rate? * a. Inversely…

A: Par value of a bond is the amount you will get at the time of maturity of the bond The market price…

Q: Define stocks?

A: Organizations sell stock in order to raise funds so that they can operate their business. Stocks can…

Q: Calculate the value of change in stock if opening stock is $340 million and the closing stock is…

A: Change in stock=Closing stock-Opening stock Closing stock=$460 million Opening stock=$340 million

Q: If you hold a bond at a time when the market interest rate is increasing, you will find that the…

A: Interest Rate Risk: The phenomenon of an inverse relationship between market interest rates and bond…

Q: You own a zero-coupon bond that will pay 10,000 in two years. The interest rate from 2021 to 2022 is…

A:

Q: Calculate change in stock if closing stock is $250 million and the opening stock is $200 million

A: The information Being given to us is:- Value of closing stock = $250 million Value of opening stock…

Q: A company has announced a profit, but why is the price of stock still falling? Is the market…

A: The degree to which market prices represent all accessible, relevant information is referred to as…

Q: Find opening stock of firm when closing stock is $40,00 and change in stock is $64,00?

A: The firms, and businesses tend to produce various goods, and services with the motive of earning…

Q: All other things being equal, if people want to buy more stock than people want to sell at the…

A: When more people want to buy more stock and less number of people would sell the stock at current…

Q: What would be the effect of increased demand for the company's stock?

A: The very known law of Demand is quite applicable to the financial markets and an increase in the…

Q: You believe that a corporation’s dividends will grow by 6% in the foreseeable future. If the…

A: Since, there are multiple questions, the first one is being answered. You are requested to post only…

Q: Which of the following might place downward pressure on stock prices? Check all that apply. The…

A: In the stock market, the price of stocks are influenced by demand and supply of stocks as the market…

Q: Calculate opening stock if closing stock is $4500 and change in stock is $3000

A: The information being given is:- Closing stock = $4500 Change in stock = $3000 We have to calculate…

Q: Suppose that stock prices were to fall by 10 percent in the stock market. All else equal, would the…

A: The economy's gross domestic product is made of consumer spending, private sector spending, net…

Q: Suppose that US mutual funds suddenly decide to invest more in Canada What is the long-run effect on…

A: US mutual funds suddenly decide to invest more in Canada.

Q: What was the great depression, what triggered it, how long did it last, and how did the concepts of…

A: Great Depression The Great Depression was the worst economic downturn in the history of the…

Q: Suppose sale of a firm is $22,000 and change in stock is $ 38,000 what would be the value of output?

A: According to question we are given that  sales =$22,000 Change in stock=$38000 we have to find value…

Q: What is stock exchange

A: Capital is a very important factor while setting up any business. Capital refers to the amount of…

Q: What are the functions of stock exchanges in the economy?

A: The following problem has been answered as follows:

Q: DownUnder, is a publicly traded company, but it does not intend to raise any new capital in the next…

A: Securities are investment exchanged on a secondary market. There are three sorts: equity, bonds, and…

Q: Find the value of closing stock if opening stock is $30 million and change in stock is $8 million

A: The information given to us is as follows:- Opening stock = $30 million  Change in stock = $8…

Q: You hold a two-period bond that pays a coupon  at the end of each period. The interest rate is…

A: Holding a two-period bond, that pays a coupon at the end of each period with an interest rate of…

Q: A bond that has a face value of $300 maturing in one year is available for purchase for $252 . What…

A: Given, Face value (F) = $300  Price of bond (P) = $252  Time (t) = 1 year

Q: Calculate opening stock if change in stock is $40 million and closing stock is $99 million

A: According to the above given question, the values are:- Change in stock = $40 million Closing stock…

Q: The value of change in stock is $100 million And closing stock is given as $130 million Calculate…

A: Here, given information is, Change in stock: $100 million Closing stock: $130 million

Q: Calculate the value of change in stock if closing stock is $100 million and opening stock is $70…

A: The information being given to us is as follows:- Closing stock value = $100 million Opening stock…

Q: How will your analysis assist you in determining the direction of the stock market?

A: The macroeconomics also include several factors for study of the stock market. To have a prescient…