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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:

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otez555 [7]

Answer:

True

Explanation:

This is the case in majority of the countries that the private investment is more than the public investments as a share of the economy.

Government investment or Public investment is usually done on the essential facilities such as some healthcare clinics, schools, parks etc. While the rest of the investment is covered by the private sector which charges prices on its own terms.

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6 0
4 years ago
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3 0
4 years ago
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<h3>What is the significance of communication costs?</h3>

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2 years ago
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