The question is incomplete. Here is the complete question.
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________. A. $150 B. $50 C. $100 D. $200
Answer:
$50
Explanation:
Caribou Gold mining corporation is expected to make a dividend payment of $6 next year
Dividend are expected to decline at a rate of 3%
= 3/100
= 0.03
The risk free rate of return is 5%
= 5/100
= 0.05
The expected return on the market portfolio is 13%
= 13/100
= 0.13
The beta is 0.5
The first step is to calculate the expected rate of return
= 0.05+0.5(0.13-0.05)
= 0.05+0.5(0.08)
= 0.05+0.04
= 0.09
Therefore, the intrinsic value of the stock using the constant growth DDM model can be calculated as follows
Vo= 6/(0.09+0.03)
Vo= 6/0.12
Vo= $50
Hence the intrinsic value of the stock is $50
Answer:
"What does success look like for you?" And: "Do you have what it takes to get there?
Explanation:
<span>john's choices as the unit owner are the modification cannot be refused; the tenant can pay and should restore to original condition upon move out. As he is giving rent for that house and for his special case this can't refused. but a condition can be added like while returning the house should be provided at the original condition. This type of renovation can be done by the tenant or done by owner and charged to tenant. As it is for the tenant convenience only permission can be given by the owner and cost incurred should be beared by the tenant.</span>
Answer:
False Statement
Explanation:
Saving accounts pay interest on the money you deposit.
Answer:
The answer is c. lower than the rate for all new businesses.
Explanation:
When you start a franchise it's business risk is much lower than a new business. The parent organization supports you both financial and in terms of training and development and you have the access to and already well established brand and a market segment as well. Which makes it easier and safer.
