Assume That You Would Like to Purchase 100 Shares of Preference

question 54

Multiple Choice

Assume that you would like to purchase 100 shares of preference shares that pays an annual dividend of R6 per share.However, you have limited resources now, so you cannot afford the purchase price.In fact, the best that you can do now is to invest your money in a bank account earning a simple interest rate of 6 percent, but where interest is compounded daily (assume a 365-day year) .Because the preference shares are riskier, it has a required annual rate of return of 12 percent (assume that this rate will remain constant over the next 5 years) .For you to be able to purchase this share at the end of 5 years, how much must you deposit in your bank account today, at t = 0?

• A) R2,985.00
• B) R4,291.23
• C) R3,138.52
• D) R3,704.18
• E) R4,831.25

Recognize the link between specific brain areas and artistic or creative abilities.

Explain topographical organization within the motor and sensory projection areas.

Understand the significance of association areas in complex processing and behavior.

Explain how brain damage can affect social cognition and impulse control.

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Definitions:

Producers

Producers are individuals or entities that create or supply goods and services for consumption in the marketplace.

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply.