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
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.

You might be interested in
Need help with this question asap plz
wariber [46]

The correct answer is the second one: It made it illegal to imprison people unless they were convicted of a crime.

I hope this helps.

5 0
3 years ago
Over the last century, U.S. real GDP per person grew at a rate of about...
Law Incorporation [45]
I think it is c I’m not sure
3 0
3 years ago
Calculate the simple interest payable on a ten-month loan of $60,000 if the interest rate is 16.5%.
marysya [2.9K]

Answer:

the correct answer is 69900

3 0
3 years ago
You are the owner of a shoe company. You learn that it would be cheaper
diamong [38]

Answer:

Being a businessman and being charitable at the same time is just next to impossible at the time of expanding one's firm.

Explanation:

A business person's main motive has to be his ability to expand, so that he reaches that particular stage to do some charity for his fellow citizens. If you look at the unemployment part, then you must know that every person is somehow talented and in countries like the US, no one lives unemployed.

Therefore, it is necessary for a business person to calculate the cost factors, that does not only include the cost of labors, but also the cost of exporting the materials to Bangladesh and the cost of importing the final products. Then he needs to compare the total cost making the shoes in Bangladesh with making them via the US labors, and then take the decision accordingly.

3 0
3 years ago
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and ac
bezimeni [28]

Answer: A. True

B. True

C. False

Explanation:

A. Both Mutual Savings Banks and Credit Unions are owned by the their depositors. Credit Unions are owned and operated by members for the purpose of creating banking services for themselves at a cheaper cost.

Mutual Savings Banks are also owned by members who felt that traditional banks did not favour them.

B. Demand Deposit accounts exist in both commercial banks and Credit Unions but with different names. In Commercial banks they are known as Checking accounts for the most part but Credit Unions call them Share Draft Accounts and members of the Union can use these accounts by writing drafts like Commercial banks allow cheques.

C. While Credit Unions were formed usually for people in the same organisations or people with a common bond, Mutual Savings Banks were generally meant to uplift the lower economic classes so they did not share a common bond as Credit Union members do.

5 0
3 years ago
Other questions:
  • A survey of 1000 executives ranked _____________ at the top, as the ideal manager's skill.
    11·1 answer
  • The management of Madeira Computing is considering the introduction of a wearable electronic device with the functionality of a
    11·1 answer
  • The organizers of a local music and arts festival approach the management of Ocelot Juice Bar, a popular business near the festi
    5·1 answer
  • Brite-Way Lighting is based in California and sells products within the United States as well as to ten foreign countries. Brite
    14·1 answer
  • Which of the following is not true about the law of diminishing returns? It is a short run phenomenon. It refers to diminishing
    9·1 answer
  • Your immediate supervisor is a nice person. He helps you solve your problems and gives valuable advice. You admire your supervis
    15·1 answer
  • In 2017, Blake purchased a new home. In addition to the purchase price of $200,000, he paid $700 in legal fees and $2,000 in rec
    12·1 answer
  • Morgan is going to give a presentation on how to prepare a tax return. Which of the following would constitute a suitable thesis
    13·1 answer
  • 9. The controlling function of management could also be described as (1 point)
    5·1 answer
  • When working in groups, martin will often become frustrated when one member of the group attempts to make unilateral decisions f
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!