Answer:
The price 3-years from now will be of $52,50
Explanation:
<u>We solve for g using the Gordon model:</u>
As we don't know the rate of return we solve ofr that fist using CAPM:
CAPM (Capital Assets Price Model)
risk free 0.049
market rate 0.099
premium market = market rate - risk free 0.05
beta(non diversifiable risk) 0.9
<em>Ke 0.09400</em>
We plug that in the gordon equation and solve for g:
2.25 = 0.094 x 46 - g x 46
(2.25 - 4.324) / 46 = -g
-0.0450869565217391 = -g
g = 0.045087
In the gordon model the price of the stock increases at the grow rate:
as P = D/(r-g)
P1 = D(1+g)/r-g)
P1 / P = D(1+g)/(r- g) / D/(r- g) = 1 + g
Expirement
Add an expirement to see which records are less than ten
Answer: YTM =11.23%
Explanation:
PV = $1,132.17
FV = $1,000
N = 8 Years
PMT = Annual coupon payments = Coupon rate x Face value =10.3% x $1,000
PMT = $103
We plug these values into the financial calculator and compute YTM ( I/Y in the calculator)
YTM = 11.231 %
https://www.calculator.net/finance-calculator.html?ctype=returnrate&ctargetamountv=1000&cyearsv=8&cstartingprinciplev=1132.17&cinterestratev=6&ccontributeamountv=103&ciadditionat1=end&printit=0&x=118&y=29
Answer: a. $0.53
Explanation:
Material Cost per foot of finished product = Material Cost/ Number of feet produced in June
Plastic Material Cost in June= $640,000
Number of Feet produced in June = 1,200,000
Material cost per foot of finished product
= 640,000/ 1,200,000
= $0.53
<span>The movement of storage of materials into a firm is material management. This is a technique that concerns itself with organizing, planning, and controlling how and what materials flow from the time they are originally purchased until they reach their destination.</span>
