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GarryVolchara [31]
3 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]3 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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Visit the web site for a different well-known company, and find the section that lists the company's values. what are the compan
vovangra [49]

Person can visit the website of Microsoft is the well known company to find the section that lists the company's values.

<h3>What are the core values that Microsoft has?</h3>

  • Innovation - People think that technology can and should be used for good, and that meaningful innovation can and will help to make the world a better place in both large and little ways.
  • Inclusion and variety Diverse voices allow us to thrive. To inform, challenge, and push our thinking, we draw on the experiences, strengths, and perspectives of our workers and customers.
  • CSR- people think that technology has the potential to be a great force for good, and we are working to ensure that everyone has access to the benefits and opportunities that technology provides.
  • Artificial Intelligence- AI, we believe, can enhance your capabilities, free you up for more creative and strategic pursuits, and help you or your organization achieve more when it is created with humans at the heart

Thus, Microsoft is company that have a solid values.

For further details about core values that Microsoft , click here:

brainly.com/question/17031465

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6 0
2 years ago
Q.2Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-
melisa1 [442]

Answer:

A loss of $1400

Explanation:

The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.

The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100

=20%.

The double-declining rate will be 40%

The depreciation schedule for two years will be as follows.

Open. Bal Dep. rate Dep. Amount  Book value

$27,500  40%  $11,000   $16,500.00

$16,500  40%  $6,600             $9,900.00

The equipment was sold for $8,500

net gain or loss will be the selling price - book value

=$8,500 - $9,900

=- $1,400

A loss of $1400

8 0
3 years ago
5. Destiny is asked if she wants to open a Macy's credit card on the spot when she is checking out.
Zielflug [23.3K]
B because is B I now it is
5 0
3 years ago
Helix reported the following information in its financial statements. Write-offs of accounts receivable were $200 in the current
olya-2409 [2.1K]

Answer:

the Bad debt Expense for the Year is $250

Explanation:

The computation of the bad debt expense is given below:

Bad debt Expense for the Year is

= Current year of  Allowance for Doubtful Accounts + Write off in Current Year - Prior year of Allowance for Doubtful Accounts  

= $400 + $200 - $350

= $250

Hence, the Bad debt Expense for the Year is $250

7 0
2 years ago
Market anomaly refers to _______.A. an exogenous shock to the market that is sharp but not persistentB. a price or volume event
Klio2033 [76]

Answer:

the correct answer is C. A trading or pricing structure that interferes with efficient buying and selling of securities.

Explanation:

7 0
3 years ago
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