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NEW QUESTION: 1
Assume that nominal interest rates just increased substantially but that the expected future dividends for an entity over the long run were not affected. As a result of the increase in nominal interest rates, the entity's share price should
C. Stay constant
D. Change, but in no obvious direction_
The dividend growth model is used to calculate the price of a share.
Assuming that DI and G remain constant, an increase in Rs resulting from an increase in the nominal interest rate will cause Po to decrease. A higher interest rate raises the required return of investors, which results in a lower share price. An entity has the following three investment projects available:
The entity has a 4O f debt and 60 l equity capital structure. Each monetary unit of investment funds will be raised in these proportions .40 of debt and .60 of equity). The marginal cost of financing increases with the amount of new funds raised, as follows:
C:\Documents and Settings\usernwz1\Desktop\1.PNG These investment opportunities and financing costs are shown in the graph below.
MCC=Marginal cost of capital IOS=Investment opportunity schedule
NEW QUESTION: 2
Windows Server 2016を実行する300台のAzure仮想マシンを含むAzureサブスクリプションがあります。