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vodomira [7]
4 years ago
15

ou are thinking about investing in stock in a company who paid a dividend of $10 this year and whose dividends you expect to gro

w at 4 percent a year. The risk-free rate is 3 percent and you require a risk premium of 5 percent. If the price of the stock in the market is $200 a share, should you buy it
Business
1 answer:
Nimfa-mama [501]4 years ago
6 0

Answer:

Yes

Explanation:

To make the decision to buy the share, we first need to calculate the fair value per share today, We can use the Dividend Discount model to estimate today's value of stock based on future cash flow ( dividend ).

The formula for Price is,

  • P = D (1 + g) / r - g
  • Where D is dividend today
  • g is the growth rate of dividend
  • r is the required return

We calculate r by adding the risk free rate and stock's risk premium.

r = 3 + 5 = 8%

Now we calculate the stock's fair price today,

P = 10 (1 + 4%) / 8% - 4%  ⇒ $260 / share

  • We compare the Fair price per share with the market price and if the fair price (260) is more then the market price (200), the share is understood to be undervalued and the decision will be to buy the share as in this case.

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kirza4 [7]

Answer:

B) the reallocation of resources between military and civilian goods.

Explanation:

PPC is the graphical representation of product combinations that an economy can produce, given resources & technology.

Given same resources & technology, the two goods are inversely related - one good's quantity can be increased by decreasing the quantity of other good.

PPC is based on the assumption that resources are efficiently utilised & all points on PPC denote product combinations efficiently utilising resources.

So, movement along the PPC boundary means production level intact at full efficiency level & just reallocation of resources between good 1 to good 2, i.e here b/w military & civilian goods.

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4 years ago
why is accurate "self-classification" of items and equipment involved in a research activity, crucial to export compliance?
vovikov84 [41]

Self-classification allows me to determine if the items or technologies involved in my research are listed on either the USML or CCL, and I cannot comply with export controls until I determined which requirements apply to the research activity.

<h3>What is Technology?</h3>
  • Technology is the end result of accumulated knowledge and application of techniques, approaches, and procedures utilized in manufacturing and academic research.
  • With or without in-depth knowledge of their function, technology is ingrained in the operation of all machinery and electronic gadgets for an organization's intended purpose.
  • System-based technologies make up society's technologies.
  • When a system is in operation, it takes an input, modifies it through a known process, and then generates an output that serves the system's intended function.
<h3>What role does technology play?</h3>
  • Information technology is crucial in our lives because it makes dealing with the unpredictable aspects of daily life easier.
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  • IT aims to accomplish both of these objectives in order to simplify tasks and find solutions to numerous issues.

Learn more about technology here:

brainly.com/question/9171028

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6 0
1 year ago
A(n) ____ is an object that produces each element of a collection, such as a linked list, one element at a time.
dimaraw [331]

A collection of elements, such as a linked list, is produced one element at a time by an object known as an iterator.

<h3 /><h3>What is an iterator?</h3>

Java's collection framework uses iterators to fetch elements one at a time. It is a universal iterator since any collection object can use it. We can do both read and remove actions with the help of an iterator. It is an enhanced version of enumeration that now can remove an element. Every time we want to enumerate elements in any collection framework defined interfaces, such as Set, List, Queue, Deque, and any implemented classes of Map interface, we must use an iterator. The only cursor offered across the board by the collection framework is the iterator. Calling the iterator() function on the collection interface will provide an iterator object.

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7 0
2 years ago
Sheridan Company thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead
zlopas [31]

Answer:

$127,500

Explanation:

The Estimated Overhead cost of $2,550,000 divided by the budgeted machine hours of 20,000 gives us the overhead rate per machine hour of $127.50.

This rate will then be multiplied by the machine hours used by Job No. B12.

So, Overhead Rate of $127.50 multiplied by 1,000 machine hours will give $127,5000 which is the overhead cost that should be applied to Job No. B12 .

Note: Don't use the overhead incurred ($2,700,000) because this is the "Actual" overhead and the problem requires the "Applied" amount which is based on estimates.

3 0
3 years ago
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spen
lutik1710 [3]

Answer:

$50? ($150 is not the correct answer)

Explanation:

7 0
4 years ago
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