Interest rate– The interest rates on CDs are determined by the benchmark interest rate set by central banks. They also are influenced by the rates set by competing banks. Do not assume the advertised rate is the final offer. Always ask if the interest rate is negotiable. You will be able...
You borrow a specific amount, which is provided as a one-time cash payout at closing, and then you make regular payments during a fixed repayment period. With a home equity loan, you apply for the amount you need. Most charge a fixed interest ra...
foreverAssumesome“requiredreturn”=k k=RF+RPk=RF+beta(E(Rm)-RF)Sameasperpetuityformula DividendDiscountModelConstantDividends P PV t1 d(1k)t dk DividendDiscountModelGrowingDividends Evaluatestreamofgrowingdividends dt(1g)td0 g=growthrate MoreGrowingDividends PV (1g)td0t1(1k)t ...