Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the rate of 2% per year. The risk-free rate is 6% and the market risk premium is 8%. The stock of Old Quartz Gold Mining Company has beta of -0.25 (minus 0.25). The intrinsic value of the stock is

Answers

Answer 1

Answer:

$133.33

Explanation:

Calculation for The intrinsic value of the stock

Intrinsic value of the stock = 6% + [−0.25(14% − 6%)] = .04

Intrinsic value of the stock = 8/[.04 − (−.02)]

Intrinsic value of the stock = 8/.06

Intrinsic value of the stock = $133.33

Therefore the intrinsic value of the stock is $133.33


Related Questions

Can a business succeed without having ALL four of the Factors of Production (Land, Capital, Labor and Entrepreneurs)? Why or why not?
PLS HELP ILL MAKE U BRAINLIEST

Answers

The answer is Yes.
A business can run properly and the problems are solved considering only labor and capital and sometimes land in the production process.

Petersen Company has a capital budget of $1.0 million. The company wants to maintain a target capital structure that is 55% debt and 45% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual distribution model and pays all distributions as dividends, what will be its payout ratio?

Answers

Answer: 43.75%

Explanation:

Payout ratio = Dividends paid / Earnings

Company has a Capital budget of $1 million which must be financed by 45% equity.

= 1,000,000 * 45%

= $450,000

This will be taken from the Net income which would leave the following for dividends;

= 800,000 - 450,000

= $350,000

Payout ratio = 350,000/800,000

= ‭0.4375‬

= 43.75%

The government decides to reduce income taxes due to a recession in the economy over the past nine months. The reduction in income taxes will effectively boost spending in the economy if:__________.
A) Ricardian equivalence does not hold-people choose to save the majority of the extra income they now take home.
B) Ricardian equivalence does not hold-people choose to spend the majority of the extra income they now take home.
C) Ricardian equivalence holds--people choose to spend the majority of the extra income they now take home.
D) Ricardian equivalence holds-people choose to save the majority of the extra income they now take home.

Answers

Answer:

B) Ricardian equivalence does not hold-people choose to spend the majority of the extra income they now take home.

Explanation:

According to the Ricardian equivalence, in this the consumer wants to enjoy the similar wealth all over the life due to which the deduction of the tax would not likely to rise the consumption of the consumers. They spent the similar amount. Also the consumer try to expect the loss arise in the future because of the tax rise and at the same time the government can increased the tax so that the loss i.e. spent would be balanced.

Now in the given situation if Ricardian equivalence grasp the income deduction so the consumption would not rise due to which the company can be within the recession

hence, the correct option is B.

The G20 represents the financial interest of nations that account for about _____________ of world trade.​

Answers

Answer:

  about 80% of world trade

Explanation:

The G20 consists of 19 individual countries and the European Union. If trade within the EU is included, the members account for about 80% of world trade. If trade within the EU is excluded, the members account for about 75% of world trade.

Answer:

About 80% of world trade

Explanation:

#CARRYONLEARNING

For 2018, Gourmet Kitchen Products reported $23 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2018?

Answers

Answer:

$1,750,000

Explanation:

Calculation for how much value did management add to stockholders' wealth during 2018

First step is to calculate the Operating income

Operating income=23 million-18 million

Operating income= 5 million

Now let calculate the EVA=

EVA= (5,000,000 *(100-35%))-($15,000,000*10%)

EVA=($5,000,000*65%)- ($15,000,000*10%)

EVA=$3,250,000-$1,500,000

EVA=$1,750,000

Therefore the amount of value that the management add to stockholders' wealth during 2018 will be $1,750,000

the following is an example of _____ stop by our store this Saturday between 2 and 4 to get a free gift
A-a call to action
B-white space
c- a unique selling proposition
D- cultural sensitivity

Answers

Answer: a call to action

Explanation:

The following is an example of a call to action stop by our store this Saturday between 2 and 4 to get a free gift. The correct option is A. Your call to action is the section of your advertisement that instructs your target audience on what they should do after clicking on your PPC ad and arriving at your website or landing page.

What is the main goal of a call to action?

CTAs are used all across the web to entice potential leads or convert existing leads into customers. Their goal is to entice the visitor to do a specific activity.

A call-to-action is a short statement on your website, email, or another piece of content that encourages visitors to perform some desired action, which eventually continues their contact with your company.

Thus, the ideal selection is option A.

Learn more about the call to action here:

https://brainly.com/question/28937788

#SPJ2

A new product, an automated crepe maker, is being introduced at Miyake Corporation. At a selling price of $52 per unit, management projects sales of 38,000 units. Launching the crepe maker as a new product would require an investment of $228,000. The desired return on investment is 20%. The target cost per crepe maker is closest to:___________.
Noreen rechecks 2017-04-04
a) $66.61
b) $62.63
c) $54.20
d) $50.80

Answers

Answer:

d) $50.80

Explanation:

The computation of the target cost per crepe maker is as follows:

But before that

Return per unit is

= ($228,000 × 20%) ÷ 38,000  units

= $1.20

Now  

The target cost per crepe maker is

= $52 - $1.20

= $50.80

hence, the target cost per crepe maker is $50.80

Therefore the correct option is d.

And all the other options are incorrect

According to personality psychologists, leader traits will play a stronger role shaping leader behavior in what type of situations?
a. weak
b. all of these.
c. structured
d. bureaucratic
e. strong

Answers

Answer:

a. weak

Explanation:

Leadership traits are more exposed and open in weak situations. Naturally, a person’s traits cannot be hidden and plays a strong role in their leadership behavior. Thus, individuals personality traits are known to shape a leader behavior in weak situations.

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Answers

Answer:

book-keeping

Explanation:

18)
Whiskey, gin, and vodka are examples of
spirits (3 pts).

Answers

Answer:

Vodka, gin, baijiu, shōchū, soju, tequila, rum, whisky, brandy and singani are examples of distilled drinks. Beer, wine, cider, sake and huangjiu are examples of fermented drinks.

Explanation:

Most food service establishment before the 18th century cater to ____.
1. Farmers
2.travelers
3. city dwellers
4. Royalty

Answers

Farmers are the only ones
I’m not sure I say farmers

What is the difference between inflation and deflation.

A. Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money.

B. Inflation can result from rising demand and boost the value of money. Deflation can result from failing demand and reduces the value of money.

C. Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boost the value of money.

D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.

Answers

Answer:

D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.

Explanation:

Inflation is the general increase in prices in the economy over time. As the economy grows, prices automatically rise. There is a direct correlation between economic development and inflation. A high growth rate may result in a high inflation rate. High growth is caused by an increase in demand for goods and services.

Inflation erodes the purchasing power of money. As prices increase, it means one unit of money will purchase fewer quantities of goods and services than the previous season.

Deflation is the opposite of inflation. It means a general decline in prices in the country. Low production due to reduced demand causes prices to decline. One unit of money will purchase more quantities of goods and services as prices decline.

Answer:

I believe the answer is D :)

Explanation:

g Obligations to be paid within one year or the company's operating cycle, whichever is longer, are:

Answers

Answer:

Current liabilities

Explanation:

Liabilities are debts that a company owes to other parties. They are classified based on when payment is due.

Those due within a short period are called current liabilities while those due in the distant future are called long term liability.

Current liability payments falls within one year or the operating cycle of a business whichever is longer.

They occur as a result of purchases made on credit payable in a short period

The argument that industries should be temporarily protected by tariffs or quotas to allow firms to develop a competitive product is called the:_________
a) antidumping argument.
b) competitive relief argument.
c) countervailing duty argument.
d) infant industry argument.

Answers

Answer: infant industry argument

Explanation:

The infant industry argument simply means that the new industries in a particular economy should be protected at all cost from the multinationals or already developed foreign firms so that they themselves can grow and that the foreign firms will not hinder their progress and growth.

This usually applies to small and newly established firms. One of the main reason for taxation is to help protect such industries from competition thqt can hinder them.

Burke tires just paid a dividend of $2.42. analysts expect the company's dividend to grow by 30% this year, 20% next year (year 2), 10% the following year (year 3), and then 5% in each subsequent year. if the required return to the stock is 8.3%, what is the best estimate of the stock's current market value (please enter the value to the penny)?
a. $60.34.
b. $59.48.
c. $59.91.
d. $58.62.
e. $59.05.

Answers

Answer:

There is no correct answer is these options. But the correct answer is $113.41

Explanation:

The formula to solve this is:

Po = D1/r - g

Po is the Current price of the common stock

D1 is the future dividend payment

r is the rate of return

g is the growth rate.

This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;

D1(Dividend in year 1) is $3.15( $2.42 x 1.3)

D2(Dividend in year 2) is $3.78(3.15 x 1.2)

D3(Dividend in year 3) is $4.15($3.78 x 1.1)

D in subsequent years is $4.36(4.15 x 1.05)

P3(price of stock in year 3) = $4.36/0.083 - 0.05

=$132.12

Now the stock's current market value is

$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3

The price of the stock is $113.41

A spa has placed a magazine advertisement in a local women’s magazine. What technological feature have the owners incorporated in this advertisement?
A. A QR code that is scanned and decodes information directly on the phone
B. Offline integration such as a pop-up
C. Interactive content
D. Holoscreen that uses glass media for projection
E. Fog screen that uses fog for image projection

Answers

Answer: A. A QR code that is scanned and decodes information directly on the phone

Explanation:

This is the best option as QR codes are usually inserted into print media to give more information about something when they are scanned. They can even be used to give discounts.

Human technology has not reached the point where either pop-ups, interactive content, or image projections can appear on print media so options B through E are wrong.

Answer:

A. A QR code that is scanned and decodes information directly on the phone

Explanation:

If your superior tells you that they will offer you a raise if you perform additional work beyond the requirements of your job, they are exercising ________ power.

Answers

Answer:

Legitimate power.

Explanation:

Legitimate power is the type of one that is exercised by someone in a position of authority in the workplace.

The leader gives instructions based on his official office or title in the organisation.

I'm the given scenario where your superior tells you that they will offer you a raise if you perform additional work beyond the requirements of your job, he is stating conditions got a pay raise based on his position as your supervisor

Answer:

If your superior tells you that they will offer you a raise if you perform additional work beyond the requirements of your job, they are exercising ________ power.

Incentive power.

Explanation:

The superior is exercising the power of incentive.  Incentives are motivations for people to take certain actions.  They can be positive and negative.  These incentives also affect the choices and behavior made by individuals and groups based on different individual and group values. Most often, incentives cause people to change their behavior in certain predictable ways.  Superiors can employ various incentive schemes to address organizational changes, and they usually include economic, social, and moral incentives.

Type the correct answer in the box. Spell all words correctly.

Identify the buying or selling process described in the given scenario.

Donna runs a men's apparel manufacturing company. She is reviewing the different suppliers who can supply her company with the required
raw materials.

Donna is going to engage in
buying ______?

Answers

Explanation:

Donna is going to engage in

buying raw materials?

Résumés should be prepared using the following guidelines:
12-point font
uniformly designed
white space to improve readability printed on quality paper​

Answers

Answer:

I personally selected all of them, not sure if it's right or not because my teacher didn't tell me for some reason, but it's worth a try.

Explanation:

You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price

Answers

Answer:

since the market price is lower than the offered price, you should reject this offer

Explanation:

bond's market value

PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64

PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32

market price = $934.96

since the market price is lower than the offered price, you should reject this offer

Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $202,700 net income for 2021 and declared and paid a cash dividend of $3.00 per share on all 202,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:

Answers

Answer:

$76,500

Explanation:

Zwick Company owns 25,500 shares of Handy Corporation, which represents 25,500 / 202,500 = 12.59% of all common stocks. Since Zwick influence over Handy is not significant, all dividends received will be directly considered dividend revenue.

total dividends received = $3 per share x 25,500 shares = $76,500

who was the first men in india​

Answers

Answer:Jawaharlal Nehru

Explanation:

Answer:
Balangoda Man

The area that consumes the majority of a family’s income is

Answers

The area that consumes the majority of a family’s income is Housing.

This is according to the Bureau of Labor Statistics' info for 2017.

A company purchased an asset for $2,850,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33%, 44.45%, and 14.81%, respectively. What is the book value of the equipment at the end of the project?
A) $211,185.B) $0.C) $633,270.D) $1,900,095.E) $2,638,815.

Answers

Answer:

A) $211,185

Explanation:

The computation of the book value of the equipment at the end of the project is as follows;

Depreciation in Year 1 is

= Asset Price × 33.33%

= $2,850,000 × 33.33%

= $949,905

Depreciation in Year 2 is

= Asset Price × 44.45%

= $2,850,000 × 44.45%

= $1,266,825

And, Depreciation in Year 3 is

= Asset Price × 14.81%

= $2,850,000 × 14.81%

= $422,085

Now

Total Accumulated Depreciation is

= $949,905 + $1,266,825 + $422,085

= $2,638,815

And, finally  

Book Value of the equipment is

= $2,850,000 - $2,638,815

= $211,185

Therefore the correct option is a.

Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $140 per hour; the related hourly variable and fixed operating costs will be $75 and $18, respectively. If all employees are currently working at full capacity on other client matters, the per-hour opportunity cost of being unable to provide this new service is:______
a. $0.
b. $47.
c. $65.
d. $93.
e. $140.

Answers

Answer:

c. $65.

Explanation:

The computation of the per hour opportunity cost is as follows:

= Per hour revenue - per hour variable cost

= $140 - $75

= $65

The fixed cost would not be considered as it is a sunk cost

Therefore the  per hour opportunity cost is $65

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The MerryWeather Firm wants to raise $11 million to expand its business. To accomplish this, the firm plans to sell 15-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 4%. What is the minimum number of bonds the firm must sell to raise the $11 million it needs?
a. 20,711.
b. 113,377.
c. 41,422.
d. 56,688.
e. 23,000.

Answers

Answer:

$19,810.54

Explanation:

Calculation for the minimum number of bonds the firm must sell to raise the $11 million it needs

First step is to calculate the price of each bond

Price of each bond =1,000 / (1+0.04)^15

Price of each bond =1,000 / (1.04)^15

Price of each bond =$555.26

Now let calculate the minimum number of bonds the firm must sell

Minimum number of bonds to sell=$11 million/$555.26

Minimum number of bonds to sell=$19,810.54

Therefore the minimum number of bonds the firm must sell to raise the $11 million it needs is

$19,810.54

my bunnies Lola (gray and white) and Sylvester (brown)

Answers

Answer:

cute

Explanation:

theyre so cute

Answer:

omg your bunnies are SO cute!

Explanation:

:D

. Define corporate-level strategy. What are the different levels of diversification firms
can pursue by using different corporate-level strategies?

Answers

Answer:

Tipos de diversificación empresarial

Explanation:

°Inversión propia. Constituye la fórmula de diversificación más seguida, puesto que supone echar mano de los recursos propios a la hora de intentar conquistar nuevos espacios productivos y clientes.

°Adquisición total o parcial de una empresa.

°Diversificación relacionada.

°Diversificación no relacionada.

Changes in technology can cause changes in the productivity of a resource. Technological change can be economy-wide, industry-specific, or can occur within one firm's production process. Explain how a change in the productivity of a resource changes the demand for the resource. Give an example.

Answers

Explanation:

Globalization is a worldwide phenomenon caused by technological changes, with a greater possibility of communication between countries, there was a revolution in business, which became much more profitable when they were present in several countries in the world. An example of a change in the productivity of a resource that has been directly impacted by technological changes is the cell phone industry.

The change in resource productivity occurs both internally and externally to this niche, since with the globalization and ease of doing business outside the organization's host country, there is a quest to make the global value chain, with a focus on labor and cheaper raw material.

It is also necessary to consider that in the cell phone industry, technological change has added new features to the product making the device that only made connections a smartphone, a device with multiple features and internet access, such as Apple, which with advanced technology reaches every more consumers around the world.

hello anyone know carson lueders

Answers

Answer:

Im not sure who he is

Explanation:

never heard of them :|
Other Questions
can someone answer the problem, please? 158 4 O est...?Say what these people are looking for. Complete each sentence with the possessive adjective that agreeswith the subject4. Nous cherchons _____ livres.a. vosb. monC. sesd. nos SmolHumanAngel here y go I HAVE TWO QUESTIONS PLEASE PLEAAASEEE HELP!!! Learning task 2A. Solve the systems of equations by a) graphing b) elimination c) substitutionEq. 1: 2x - 3y = -1; Eq. 2: y = x - 1B. Solve the problem using any method.The sum of two numbers is 32 and the difference is 2. Find the numbers PLS HELP which ones would be made of cells? and which ones show cell walls?Cork, Sponge, Wood, Plastic, Tree A .cache is made up of _____ , each of which stores a block along with a tag and possibly a valid/dirty bit which process is best illustrated by the diagram? answer the questions in some sentences The cost of 4 belts and 5 ties is $247. Each time costs 3 times as much as a belt. What us the total cost of 1 belt and 1 tie 1. What role do the oceans play in water cycle?2 Where do you think sublimation of snow to water is most common?Please help me my brain is fried from all this homework 1)An ice machine uses 3 gallons of water every 9 hours. How many gallons of water does it use each hour? How manyhours does it take to use one gallon?A)B)gallon per hour, 1 hourgallon per hour, 3 hours3 gallons per hour, 5 hourgallon per hour,1 hourD Who are the most aggressive of the types we looked at? The first equation in the system of equations that models this situation is x+y=70, where x represents the number of 2-point questions the number of 4-point questions. What is the other equation in the system? Enter the correct answer in the box. Substitute numerical values in the expression for A, B, and C. Line t has slope 3 and passes through (0, 0). Follow these steps:Step 1: Start at (0, 0)Step 2: Move right 8 units 6. The variable n represents the figure numberin the following algebraic pattern rules:A. 4n B. 2n + 2 C. 3n + 1 D. 4n - 1Which of these pattern rules describes thetoothpick pattern shown below? Explainhow you know.AFigure 1Figure 2Figure 3Figure 4 Which of the ratios below is equivalent to 2:1? Select all that apply.A) 6:4B) 8:4C) 10:5D) 6:12E) 6:3 Find the value of 4/5 divided by 8/15. You must simplify. Hi! Can someone please help me with these two questions??!! Thank you so much! Please help me find tge answer soon thxs