Answer:
Producers and consumers :)
Explanation:
Market economies are run by buyers and sellers, there is no government involved.
The highest price for the stock is $22.00.
<u>Explanation</u>:
<u>Given</u>:
- Hallowell Inc has a free cash flow of $2.5 million and 1.25 million shares.
- The cash flow ratio for the company is 11.
<u>Solution</u>:
For one stock the cash flow ratio is 11.
Then the highest price we should pay is $22.00.
So we should pay $22.00 for one stock.
Therefore the highest price we should pay for the stock is $22.00
Answer:
c. The beta of the portfolio is lower than the lowest of the three betas.
Explanation:
As for any investment portfolio, with number of investments, each investment has its own beta.
When we compute the beta for entire portfolio, the beta is based on weighted average of investments.
Under the weighted average method there are weights assigned on the basis of value of individual investment, out of total value of investment.
Thus, the beta for portfolio, can never be less than the least beta of any individual investment in a portfolio.
Answer:
the stock sell for today is $1.16
Explanation:
The calculation of the stock sell for today is as follows;
Value after year 31 is
= (D31 ÷ Required return)
= $30 ÷ 0.18
= $166.666667
Now the current value is
= Future dividend and value × Present value of discounting factor(rate%,time period)
= $30 ÷ 1.18^31 + $166.666667 ÷ 1.18^31
= $1.16
Hence, the stock sell for today is $1.16
We simply applied the above formula so that the correct value could come
And, the same is to be considered
