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mezya [45]
3 years ago
13

A stock is priced today at $12.70. Analysts have a consensus view that the stock will be valued at $15.62 next year. The stock w

ill not pay a dividend in the coming year. After a little research, you know that the stock has a beta of 1.00. The risk free rate in the economy is 5.00%, while the market risk premium is 6.00%. If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY
Business
1 answer:
Archy [21]3 years ago
3 0

Answer:

The stock should be trading at $14,74 today

Explanation:

In Capital Market Asset Pricing (CAPM) model.   expected return = risk-free rate + beta*(market risk premium - risk-free rate)

=  5% + 1*(6%-5%) = 6%

If Analysts have a consensus view that the stock will be valued at $15.62 next year, then basing on expected return 6%, the stock price today should be

= $15.62%/(1+6%) = $14.74

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Which of the following is correctly matched? Select one: a. equilibrium - balance of inputs and outputs b. steady state equilibr
Kruka [31]

Answer:

The correct answer is d. All of these are correctly matched.

Explanation:

In economics, an economic equilibrium is a state of the world in which economic forces are balanced and in the absence of external influences the values of economic variables do not change. It is the point at which the quantity demanded and the quantity offered are equal. A market equilibrium, for example, refers to the condition in which the market price is established through competition so that the amount of goods and services desired by buyers is equal to the amount of goods and services produced. by the sellers. This price is usually called the equilibrium price and tends to remain stable as long as demand and supply do not vary.

8 0
3 years ago
Reasons why South African post office taking private courier companies to court​
Brrunno [24]

Answer:

Explanation:

As the only operator of this kind in South Africa, the Post Office has the exclusive right to provide delivery services for all letters, postcards, printed matter, small parcels, and other postal articles up to and including 1kg.

PostNet was initially ordered to stop delivering all packages weighing 1kg and less by 17 March 2020. However, it secured an interdict which allowed it to continue to deliver these packages until the full challenge was heard in the Gauteng High Court.

The Post Office, Postnet and the South African Express Parcel Association (SAEPA) are now set to head to court in a move that could have ramifications for the entire courier industry in South Africa.

Icasa spokesperson Paseka Maleka told BusinessDay that the regulator would give its support to the Post Office as it was following the letter of the law, which allowed private couriers to only deliver food items in the 1kg or less category.

“Icasa’s mandate is to implement what the law requires, and we are doing exactly that,” he said.

“There are exemptions that deal with businesses that do not fall under postal services. Uber Eats, Mr Delivery, etc are such businesses. Obviously, one cannot expect Sapo to be delivering pizza to a consumer,” he said.

3 0
3 years ago
If patricia were to paint her living room alone, it would take 4 hours. her sister naomi could do the job in 5 hours. how long w
Mila [183]

Practicia completes the job in one hour = 1/4

Naoimi completes the job in one hour = 1/5

If Parcticia and Naoimi does it together,let us suppose in x number of hours.

The equation so form is:

(1/4)*x + (1/6)*x = 1 (i.e job finished)

The Least common multiple(LCM) of 4 and 6 = 12

12*(1/4)*x + 12*(1/6)*x = 12*1

Therefore, solving the equation we get,

3x + 2x = 12

5x = 12

x = 12/5

x= 2 2/5 hours or 2.24 hours

Therefore number of hours they took to complete the work is 2 hours and 24 minutes or 2.24 hours.

4 0
3 years ago
The useful life of a plant asset is
Juli2301 [7.4K]
A The length of time it is productively use in a company operation.
6 0
3 years ago
On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $11,100,000. It is estimated that th
Advocard [28]

Answer:

$555,000

Explanation:

Depletion expense = barrels mined in year 1 / barrels that can be profitably extracted ) x cost of the well

37,000 / 740,000) x 11,100.000 = $555,000

4 0
3 years ago
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