Deterministic model
The outcome from a deterministic model would be the prediction that the value in a
year’s time would be:
5000 ¥1.07 = £5350
Stochastic model
A stochastic model would have to allow for randomness in the growth rate. For
example, it might be decided (based on past performance of the company and prospects
for the company, the investment sector and the economy in general) that the
probabilities of different growth rates for the shares are:
20% with probability 0.1
10% with probability 0.6
growth
0% with probability 0.2
10% with probability 0.1
ÏÔÔ
carol1 answered the question on April 23, 2018 at 11:57
- Highlight ethical standards which should be observed by tax administrators.(Solved)
Highlight ethical standards which should be observed by tax administrators.
Date posted: April 21, 2018. Answers (1)
- State the formula for finding profit of operations in a firm (Solved)
State the formula for finding profit of operations in a firm.
Date posted: April 13, 2018. Answers (1)
- Illustrate how to calculate current Assets turnover(Solved)
Illustrate how to calculate current Assets turnover
Date posted: April 13, 2018. Answers (1)
- Explain the effects of mergers and acquisition(Solved)
Explain the effects of mergers and acquisition.
Date posted: April 6, 2018. Answers (1)
- Explain why the weighted average cost of capital of a firm that uses relatively more debt capital is generally lower than that of a firm...(Solved)
Explain why the weighted average cost of capital of a firm that uses relatively more debt capital is generally lower than that of a firm that uses relatively less debt capital.
Date posted: March 12, 2018. Answers (1)
- Explain the effects of taxation on the ability to work and save.(Solved)
Explain the effects of taxation on the ability to work and save.
Date posted: February 23, 2018. Answers (1)
- Mark and Spenser Company deals with clothing and are planning venturing into Kenyan market. The management team has appointed you as their business consultant. Using...(Solved)
Case Analysis
Date posted: February 8, 2018. Answers (1)
- Strategic management benefits consist of financial benefits and non-financial benefits. Discuss any 5 non-financial benefits(Solved)
Strategic management benefits consist of financial benefits and non-financial benefits. Discuss any 5 non-financial benefits.
Date posted: February 8, 2018. Answers (1)
- Using the Altmans Z-score model assess the financial health of the company (Solved)
The following data relates to a company in the telecommunications industry for the year to 31 December 2011:
Item Sh. 000
Sales 30 000
Total assets 25 678
Retained earnings 177
Total liabilities 15 600
Working capital 1 777
Earnings before interest and tax 2 605
Market value of equity 10 098
Book value of long-term debt 5 044
Date posted: February 8, 2018. Answers (1)
- Prepare a net value added statement for the year ended 31st December, 2015(Solved)
The information below relates to Jumuia Ltd, a listed company for the year ended 31st December, 2015
Shs
Purchase of raw materials 10 200 000
Turnover 25 160 000
Salaries and wages 6 800 000
Taxation for the year 2 040 000
Dividends 816 000
Depreciation 1 360 000
Water, power and insurance 2 040 000
Finance charge and leases 680 000
Date posted: February 8, 2018. Answers (1)
- What is a research problem?Give three examples to illustrate your answer.(Solved)
What is a research problem?Give three examples to illustrate your answer.
Date posted: January 5, 2018. Answers (1)
- What is a policy in insurance?(Solved)
What is a policy in insurance?
Date posted: December 15, 2017. Answers (1)
- Give six challenges facing kussco operations in Kenya.(Solved)
Give six challenges facing kussco operations in Kenya.
Date posted: December 12, 2017. Answers (1)
- Give four securities that a member may use to borrow capital development loan from a sacco.
(Solved)
Give four securities that a member may use to borrow capital development loan from a sacco.
Date posted: December 12, 2017. Answers (1)
- Outline the contents of a loan withdrawal voucher.
(Solved)
Outline the contents of a loan withdrawal voucher.
Date posted: December 12, 2017. Answers (1)
- Outline four sources of funds of a cooperative society.(Solved)
Outline four sources of funds of a cooperative society.
Date posted: December 12, 2017. Answers (1)
- Give six reasons that led to the establishment of the cooperative saving scheme.(Solved)
Give six reasons that led to the establishment of the cooperative savings scheme.
Date posted: December 12, 2017. Answers (1)
- Cite companies that do not need the consumer orientation concept of marketing.(Solved)
Cite companies that do not need the consumer orientation concept of marketing.
Date posted: October 3, 2017. Answers (1)
- Give the techniques of managing public debt(Solved)
Give the techniques of managing public debt
Date posted: September 30, 2017. Answers (1)
- What is the difference between capital and money markets?(Solved)
What is the difference between capital and money markets?
Date posted: September 28, 2017. Answers (1)