The question is incomplete. Here is the complete question.
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________. A. $150 B. $50 C. $100 D. $200
Answer:
$50
Explanation:
Caribou Gold mining corporation is expected to make a dividend payment of $6 next year
Dividend are expected to decline at a rate of 3%
= 3/100
= 0.03
The risk free rate of return is 5%
= 5/100
= 0.05
The expected return on the market portfolio is 13%
= 13/100
= 0.13
The beta is 0.5
The first step is to calculate the expected rate of return
= 0.05+0.5(0.13-0.05)
= 0.05+0.5(0.08)
= 0.05+0.04
= 0.09
Therefore, the intrinsic value of the stock using the constant growth DDM model can be calculated as follows
Vo= 6/(0.09+0.03)
Vo= 6/0.12
Vo= $50
Hence the intrinsic value of the stock is $50
<u>Full question:</u>
Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers on the basis of demographic variables such as income, ethnic background, and family life cycle. In this context, these demographic variables are examples of _____.
a. positioning bases
b. segmentation bases
c. product classes
d. market positions
<u>Answer:</u>
In this context, these demographic variables are examples of segmentation bases
<u>Explanation:</u>
Segmentation bases are the dimensions that can be applied to fragment a market. A segmentation basis is described as an assortment of variables or features used to select dormant customers to analogous groups. Demographic segmentation is one of the usual recommended and commonly used varieties of market segmentation.
Segmenting based on identifiable group attributes, such as age, profession, matrimonial status and so on. Because demographic information is analytical and accurate, it is normally almost easy to reveal using various sites for market research.
Answer:
$11,175,000
Explanation:
The net sales of Siena Company for the last year shall be determined through following mentioned formula:
Net sales=Gross sales-sales returns and allowances-sales discounts
In the given question:
Gross sales=$11,720,000
Sales returns and allowances=$370,000
Sales discounts=$175,000
Net sales=$11,720,000-$370,000-$175,000=$11,175,000
Answer:
Stratified random sampling.
Explanation:
Startified random sampling is one that divides the total population into subpopulations and analysis of each subpopulation is done to measure variations between them.
Each subpopulation is adequately represented in the whole sample used for study. For example when a population bis divide based on age into 18-30 years, 31-50 years, and 51 years and above.
The researcher divides all the current students into groups based on their class standing (freshman, sophomores, etc.). Then, she randomly draws a sample of 50 students from each of these groups to create a representative sample of the entire student body in the school.
This is use of stratified random sampling.
I think the correct answer from the choices listed above is the third option. A strategy that you can use to protect yourself from the risks involved in owning a home would be to purchase homeowner’s insurance. It<span> is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.</span>
