Revealed by Explanation: The term "revealed by" applies in scenarios where the classification of derivatives for a new document is integrated and obtains the authorized source for classification into the new document while not being present in the original document. Therefore, the concept used to ascertain the classification of derivatives is revealed by this principle.
Response:
Indeed, obtaining a loan would fulfill our eligibility to travel for an exceptional summer internship program next year.
Justification:
A loan would provide the necessary funds for purchasing a car. We can manage the down payment. This will allow us to acquire a vehicle. Thus, deciding to take the loan is a sound choice.
This will facilitate our commute for the summer internship. Immediately upon making the down payment, we will get the car and be able to enjoy its advantages. This represents a favorable type of debt.
The price coefficient (b) in the linear demand function is calculated as -0.10, derived from the elasticity of demand formula. By substituting known quantities into the equation, we find that the slope b equals -0.10.
Answer:
P14 = $55.69545045394 rounded to $55.70
Explanation:
The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 represents the expected dividend for Year 1 or the following year
- g denotes the constant growth rate for dividends
- r signifies the discount rate or the required rate of return
To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded to $1.67
Now applying the DDM formula for the price,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded to $55.70
