Answer:
I would buy the APPLE stock
Explanation:
Microsoft stock price = $173
dividends earned = $4, $5 and $5.5
value after 3 years = $190
Apple stock price = $285
Dividends earned = $5.5, $8.5 and $10.5
value after 3 years = $330
Applying the dividend discount model
IVO = present value of dividend + present value of terminal price
for Microsoft
IVO = ( 4/1.1 + (5/(1.1/2)) + ( 5.5/(1.1/3)) + ( 190/(1.1/3))
= $154.65
for Apple
IVO = ( 5.5/1.1 + ( 8.5/( 1.1/2)) + (10.5/(1.1/3)) + ( 330/(1.1/3))
= $267.8
Note: the IVO's are less than the current price of the stocks ( IVO = the intrinsic value of the shares ) but Microsoft shares are overpriced compared to apple
Answer:
The answer is D. Multiple IRRs can only occur if the signs of the cash flows change more than once
Explanation:
A project cannot have multiple IRRs if it is independent. Multiple IRRs can only occur if the signs of the cash flow change more than once. For a project to have more than one IRR, then both IRRs must be greater than WACC. If a project's NPV is greater than zero, then it's IRR must be less than zero.
Multiple IRRs occur when a project has more than one internal rate of return. The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools.
Answer:
b. Asset Turnover &
d. Profit margin.
Explanation:
Return on asset (ROA) simply shows a percentage of how profitable companies assets are in generating the revenue. It is calculated as:
However, if we further break it down, we can write it as follows:
Both formulas Represent the same things.
But, the ratio of Net income to Sales is known as the Profit margin- A degree to which company makes money. Here, we can see how the ROA can be broken down in terms of profit margin.
Also, the ratio of Sales to Total asset is know as the Asset Turnover- a measure of company's use assets in generating the sales.
Hence, we can say that the ROA can be dis aggregated to reveal the Asset Turnover and the Profit margin.
Answer:
Short-term memory is limited in duration and capacity.
Explanation:
Since short memory is restricted in both limit and length, the maintenance of remembrances requires moving the data from short-term in to long term memory. Practice can likewise assist data with making it into long-term memory. A human capacity is to remember things for a short period of time. Which explains why, Obie forgot the 16 digit code which was just read by her wife.
I think the correct answer from the choices listed above is option II. The purpose of a cover letter would be to <span>add more detailed information about experiences and skills that cannot be found in your curriculum vitae. Hope this answers the question.</span>
