« previous next »

Author Question: Angel recently purchased a block of 100 shares of Hayley's Optical common stock for 6,000. The stock ... (Read 126 times)

luvbio

  • Hero Member
  • *****
  • Posts: 623
on: Jul 10, 2018
Angel recently purchased a block of 100 shares of Hayley's Optical common stock for 6,000. The stock is expected to provide an annual cash flow of dividends of 400 indefinitely.
 
  Assuming a discount rate of 8 percent, how does the price Angel paid compare to the value of the stock?

Question 2

The Maloney Act led to the creation of
 
  A)
 
  the Securities and Exchange Commission (SEC).
  B)
 
  the American Arbitration Association (AAA).
  C)
 
  the National Association of Securities Dealers (NASD).
  D)
 
  the Securities Investor Protection Commission (SIPC).


TINA

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 10, 2018
Answer to Question 1

The value of the stock is = = 5,000
Angel paid 1,000 more than the value of the stock.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Optical biopsy. Optical biopsy.
Common spotted cuscus Common spotted cuscus
A Recently Discovered Member of the Local Group A Recently Discovered Member of the Local Group
All living organisms descended from a common ancestral cell All living organisms descended from a common ancestral cell
Common Cytochrome P450 Drug Interactions in Dentistry Common Cytochrome P450 Drug Interactions in Dentistry
Common Sources of Carbon Monoxide Common Sources of Carbon Monoxide
Video: How eudicots (true dicots) differ from monocots Animation

For a complete list of videos, visit our video library