Tutor profile: Suraj A.
Prove that : Sin^2 A + Cos^2 A = 1
Sin A = Perpendicular (P) / Hypotenuse (H) Cos A = Base (B) / Hypotenuse(H) Sin ^2 A + Cos^2 A = (P/H)^2 + (B/H)^2 =(P^2 + B^2) / H^2 (As per Pythagoras Theorem, Square of Perpendicuar + Square of Base = Square of Hypontenuse) = H^2 / H^2 = 1 Hence proved
What is an inverted yield curve?
Under normal circumstances, the interest (yield) rate for longer-term bonds is higher than shorter-term bonds. However, under the abnormal situation, the interest rate on shorter-term bonds crosses above the longer-term bonds. This is known as an inverted yield curve.
Current Share Price of the company is $25 Investor's expected rate of return - 10% Dividend - $2 Find out if the share is undervalued or overvalued?
As per the Dividend Discount Model, the share price of a stock is equivalent to the present value of sum of all the future payments. Share price = Dividend / Cost of Equity = $2/10% = 20$ Hence the share is overvalued by 5$
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