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GarryVolchara [31]
4 years ago
8

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a

t the rate of 7% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 19%. The stock of Todd Mountain Development Corporation has a beta of 0.60. Using the constant-growth DDM, the intrinsic value of the stock is _________. Multiple Choice
Business
1 answer:
Tatiana [17]4 years ago
7 0

Answer:

$60

Explanation:

r = return = Risk-free rate + [beta * (Portfolio expected return - Risk-free rate)] 0.04 + [0.60 * (0.19 − 0.04)] = 0.13

Intrinsic value = Next dividend / (r - Growth rate) = 3 / (0.13 - 0.08) = $60

Therefore, the intrinsic value of the stock of Todd Mountain Development Corporation is $60.

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FL Systems Inc. and Oryxo Systems Inc. are two competing firms. FL Systems Inc. has $300,000 in tangible assets and $200,000 in
BartSMP [9]

Answer:

C

Explanation:

Based on the scenario being described within the question it can be said that FL Systems Inc. will find it harder than Oryxo Systems Inc. to attain competitive advantage. This is mainly due to the fact that FL Systems Inc. has a large percentage of their money locked in intangible assets. These are assets that cannot be touched or physically used by the customers which makes it very difficult for customers to see the potential value which ultimately hurts their competitive advantage.

8 0
3 years ago
The process of accomplishing the goals of an organization through the effective use of people and other resources is
Licemer1 [7]

Answer:

the process of accomplishing the goals of an organization through the effective use of people and other resources. involves analyzing information, setting goals, and making decisions about what needs to be done. ... determines to what extent the business is accomlishing the goals it set out to reach in the planning stage.

Explanation:

I've explained enough on top.

8 0
3 years ago
In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It imported goods worth $525 bi
Masja [62]

Answer:

Trade balance of a country is given by the difference between its exports and imports. If Exports of a country exceed its imports then we have a trade surplus. If Imports are more than its exports then we have a trade deficit.

Trade Balance

Since the difference is positive we have a trade surplus of $8.

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4 0
3 years ago
The accounts receivable credit column of the cash receipts journal is
Ne4ueva [31]

The accounts receivable credit column of the cash receipts journal is "posted in summary at the end of the month and by individual amounts on a daily basis".

<u>Option: D</u>

<u>Explanation:</u>

In general ledger the sums in the debit and credit column are reported personally. The calendar of receivable accounts is lists of all clients 'accounts, account balances, and total amount due. Here the accounts receivable credit column are those in which the cash receipts journal column is the sums that are added separately to the receivable ledger accounts. Although debit column accounts payable are those in which cash payments journal column is the sums that are added separately to the accounts payable ledger.

5 0
3 years ago
Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $30.00 What is the price-earnings ratio (to the n
Aloiza [94]

Answer:

60

Explanation:

price-earnings ratio = price / earnings per share

earnings per share = net income / shares outstanding = $150 / 300 = $0.50

$30 / $0.50 = 60

3 0
3 years ago
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