Answer:
A. Market Capitalization rate = 13%
B. Intrinsic Value = $46.22
Explanation:
<em>A. Market Capitalization rate:</em>
CAPM should be used to calculate market capitalization from the given data. Following is the formula for CAPM
r = risk free rate
M = market portfolio return
B = beta
Solution:
CAPM = 13%
<em>B. Intrinsic Value of stock</em>
Gordon Growth Model (GGM) should be used to calculate intrinsic value of stock based on the given data.
Following is the formula for GGM
D = Current Dividend
g = Dividend Growth rate
r = market capitalization rate (CAPM calculated in part A)
Solution:
DDM = $46.22
<em>Note: All values are rounded off to two decimal points.</em>
where are the statements?
In this situation when the seller has filed for bankruptcy then Broker Joe has to terminate the contract. Therefore, Option B is the correct statement.
<h3>What do you mean by contract?</h3>
A legally enforceable agreement that creates, defines, and regulates mutual rights and obligations between its parties is called a contract.
An agreement usually involves the exchange of goods, services, money, or the promise to change any of these at a later date.
Therefore, Option B is the correct statement.
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The required answer is production.
Production:
- Producing something is the act of creating something out of components or raw resources. To put it another way, production employs inputs to produce an output that is fit for consumption—a good or product that has value for a customer or end-user.
- One of the most crucial steps in the manufacturing process, production is fundamental to what it means to be a manufacturer. Without this activity, no finished goods would be produced, leaving no products for buyers to purchase.
- The purpose of production is to provide the economy with commodities and services. Land is the primary factor of production, but term also refers to any other natural resource that is used to create commodities and services. This includes everything that comes from the land, not just the land itself.
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