1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergey [27]
3 years ago
14

tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 5 percent ind

efinitely. In addition, Tangshan China's most recent dividend was $5.50. The expected risk free rate of return is 3 percent, the expected market return is 8 percent, and Tangshan has a beta of 1.20.
Business
1 answer:
Aloiza [94]3 years ago
7 0

Answer: Tangshans required rate of return according to CAPM= 3+1.2*(8-3)

R=9%

Intrinsic Value= 5.5*1.05/0.09-0.05= $144.375

Stock is Overvalued as its intrinsic value is $144.375 but it is selling in the market for $160

Explanation:

You might be interested in
A customer opens a short margin account by selling short 600 shares of XYZ stock at $80 per share and deposits the required marg
astra-53 [7]

Answer:

It will increase by 50%

Explanation:

Equity is given as: credit - short market value.

Find attached below table of solution

4 0
3 years ago
"Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic pro
iris [78.8K]

Answer: is correct

Explanation: Tariff refers to the tax imposed on import and export activities. These are a type of trade restrictions that are made to regulate the domestic market of the country.

The tariff imposed on export will increase the price of the exported goods in the domestic market. Thus a majority population in the country will not purchase it and the domestic producers will benefit from this situation. In such a case, the domestic producers will make unreasonable profits from domestic consumers.

3 0
3 years ago
Diamond Company has three product lines, A, B, and C. The following financial information is available:
const2013 [10]

Answer:

e. Increase by $4,500.

Explanation:

<u>Analysis of the effect of discontinuing Product Line C</u>

Income :

Rent Income                                                    $6,000

Savings : Fixed Costs - Avoidable                 $3,000

Total Income                                                   $9,000

Costs :

Opportunity Cost - Contribution Margin       $4,500

Total Costs                                                      $4,500

Net Income (Loss)                                           $4,500

therefore,

By discontinuing Product Line C, operating income for the company will likely  Increase by $4,500

5 0
3 years ago
Individual marketing across segments creates more total sales than any other type of marketing. ​
Flura [38]

Answer:

false

Explanation:

7 0
3 years ago
What do economists mean when they use the word "land"?
Ede4ka [16]
In economics, the resource that encompasses the natural resources used in production
4 0
3 years ago
Read 2 more answers
Other questions:
  • Annie is excited about a $500 income tax return and is already contemplating which shoes to purchase. annie is exhibiting
    9·1 answer
  • Depreciation:
    5·1 answer
  • ________ can occur when individuals who are part of a group focus on preserving group solidarity at the expense of considering a
    11·1 answer
  • The factor that has the greatest impact on your credit score is what
    14·1 answer
  • Fergie has the choice between investing in a State of New York bond at 9.4 percent and a Surething Inc. bond at 12.0 percent. As
    10·1 answer
  • Santa claus enterprises has 87,000 shares of common stock outstanding at a current price of $39 a share. the firm also has two b
    9·1 answer
  • The social and economic goals of __________ include private ownership of land and business.
    11·1 answer
  • The Lighthouse Co. is in a downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans
    9·1 answer
  • Financial markets bring together people interested in purchasing or selling <br> what?
    10·1 answer
  • Assign each of the following to the correct category: A full-time college studentmultiple choice 1 Employed Unemployed Not in th
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!