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klasskru [66]
3 years ago
10

Tyson Inc. is currently trading at $18 per share. The company is expected to pay a dividend of $1.63/per share next year. The di

vidend is expected to growth 2.5% per year into perpetuity, and the cost of equity is currently 10.5%. Using Gordon growth what is the present value of Tyson Inc, and given you answer should you buy or sell the stock
Business
1 answer:
viktelen [127]3 years ago
5 0

Answer:

$20.38  buy

Explanation:

The computation of present value is shown below:-

Fair Value according to Gordon Model = Expected Div ÷ (Required Return - Growth rate)

= $1.63 ÷ (10.5% - 2.5%)

= $1.63 ÷ 8%

= $20.38

Fair Price = $ 20.38 and Actual Price = $18.00

As Fair Price is greater than the Actual Price so, the stock is under priced. Therefore advice to buy.

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3 years ago
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The marginal propensity to consume is the: a overall portion of disposable income that is consumed (and not saved) b amount by w
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.d amount by which consumption increases when disposable income increases by $1.

Explanation:

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3 years ago
Alpha Computing is a U.S. company that specializes in IT research. It has formed a joint venture with Microchips Inc., a Belgium
lianna [129]

Answer:

The correct answer is option A,strategic alliance

Explanation:

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In this case,Alpha as the leader in laptop designing  is combining resources with another technological giant Microchips Inc. in order that they may complement each other's efforts.The synergy impact of such arrangement is enormous as each partner concentrates on what he knows best.

8 0
3 years ago
Suppose your expenses for this term are as​ follows: tuition:​ $12,000, room and​ board: $6,500, books and other educational​ su
kiruha [24]

Answer:

The opportunity cost of going to college this​ term, assuming that your room and board expenses would be the same even if you did not go to​ college is $24,000.

Explanation:

Opportunity cost = income forgone + tuition + books- income earned

                            = $14000 + $12000 + $1500 - $3500

                             = $24000

Therefore, the opportunity cost of going to college this​ term, assuming that your room and board expenses would be the same even if you did not go to​ college is $24,000.

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3 years ago
Under the fair use doctrine, educational institutions cannot be liable for copyright violations.
timama [110]
I believe the answer is true
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3 years ago
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