A synonym for fraudulent is:

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

Now we solve for the intrinsic price using the gordon model

with multi-stage growth:

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

Finally we add them and get:

42.97160726

8 0

3 years ago

you consider the situation, roll up your sleeves, and get to work. what should be the first step you take in obtaining the info

Alina [70]

The first step would be: define the problem that needs to be solved.
Before we started colelcting information, we need to distinguish which type of information would be considered as 'relevant' and could aid us in achieving our goals. In climbing the Esports industry, this could involve most efficient way of training, nutrition necessary to icnrease gaming concentration, the strength of competitors, etc.

5 0

3 years ago

Eleni's landscaping company placed two orders. *The first order was for 13 bushes and 4 trees and totaled $487. *The second orde

Maksim231197 [3]

Answer:

Price of One Bush is $ 23

Explanation:

Suppose

bushes = B

trees = T

According to given condition:

13B + 4T = 487 (Eq: 1)

6B + 2T = 232 (Eq: 2)

Multiplying (Eq: 2) by 2

12B + 4T = 464 (Eq: 3)

Substractign (Eq: 3) from (Eq: 1)

13B + 4T - (12B + 4T) = 487 - 464

13B + 4T - 12B - 4T = 23

B = 23

By putting value of B in (Eq: 1)

(13 x 23) + 4T = 487

299 + 4T = 487

4T = 487 - 299

4T = 188

T = 188 / 4

T = 47

Price of One Bush = B = 23

5 0

2 years ago

A firm has $3,600,000 in its common stock account and $36,000,000 in its paid in capital accountThe firm issued 450,000 shares o

butalik [34]

Answer:

the issue price is $88 per share

Explanation:

The computation of the issue price is shown below:

= (Common stock + paid in capital) ÷ (Number of common shares issued)

= ($3,600,000 + $36,000,000) ÷ 450,000 shares

= $39,600,000 ÷ 450,000 shares

= $88 per share

Hence, the issue price is $88 per share

3 0

2 years ago

) Studies also find that teenagers have a higher price elasticity than do adults. Why might this be true?

Andru [333]

This statement is true. Teenagers have a higher price elasticity than do adults.

This is because teenagers does not have much income to spend so they can shift to other products also. Teenagers are also not addict to smoking or any other habits , Therefore price affects the demand of the product.

Price elasticity is defined as the ratio of the percentage change in quantity demanded due to percentage change in price.

Elasticity having more than 1 are relatively more elastic.

Adults have more income to spent so the demand do not effects due to change in price. As adults are more addicted to smoking then teenagers ,

addicted people did not consume less due to its price change.

To know more about price elasticity:

brainly.com/question/13565779

#SPJ1

5 0

1 year ago