Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / 1

1

Finance

1.Compare between two different investment categories (e.g. cash vs shares, etc.) in terms of their historical returns.

2.Describe the ways public companies can incentivise their share-holders.

3.Question 

  1. Suppose a company currently pays a $2.40 annual dividend on its common stock

in a single annual installment, and management plans on raising this dividend by 6 percent per year indefinitely. If the required return on this stock is 12 percent, what is the current share price?

  1. Now suppose the company actually pays its annual dividend in equal quarterly installments. So what will be quarterly dividend payment?

solve by using formulas

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

1.Broadly there are three basic investment categories which are instrumented and then purchased with an expectation of it to grow in future. and the 3 types are Ownership, Lending and Cash.

Ownership:

"High Risk and High returns", Anything associated with owning fully or portion of Asset or Instrument. some of the investment avenue associated with ownership are the most volatile and high profitable ones percieved by most of the people . some of the examples are shares The following are examples. are Shares, Business's and Real estate an buying this instruments gives you a ownership and inturn you will have a claim on profits that Shares and Business gives you and value apreciation of Real estate property.

Lending Investments

"Low Risk and Moderate returns" , These instruments are associated with lending money with an exchange of Fixed or floating interest rate agreed upon at the time of Lending. and som eof th examples are Corporate and sovereign Bonds, Treasy Bills, notes, Fixed deposit and so on.

Cash Investment

"Low Risk and Moderate returns" , These instruments are associated with those instruments which meets you Quick and short term liquidity needs like Hard Cash, Savings account and soon.

Based on the Financial goals, Time Horizon, Short term liquidity needs and risk profile on has to invest trading off between Risk and return associated with the instruments.

2.Please use this google drive link to download the answer file.       

https://drive.google.com/file/d/1Z33A-xsQzXcJxrkkOtl721BZyr0kCI_s/view?usp=sharing

Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process. 

https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link 

3.please see the attached file.