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SSSSS [86.1K]
3 years ago
7

Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is

9% for both stocks. You require a rate of return of 10% on stock C and a return of 13% on stock D. The intrinsic value of stock C
Business
1 answer:
Stels [109]3 years ago
8 0

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

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Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5
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Answer:

15 blankets; 35 meals

Explanation:

First, we compute Opportunity Cost (OC).

In Caninia,

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OC of blanket = 1/5 = 0.2 meals

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Since Felinia can produce blankets at lower OC (0.2 < 4), so

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Total blankets produced with trade = 5 x 10

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Since Caninia can produce meals at lower OC (0.25 < 5), so

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Total meals produced with trade = 8 x 10

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After trade,

Total blankets produced = 10 + 25

                                         = 35

Decrease in blanket output = 50 - 35

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Total meals produced = 40 + 5

                                     = 45

Decrease in meals output = 80 - 45

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5 0
2 years ago
When meeting a CEO whom he hoped to win over as a new client, James, dressed in an Armani suit, introduced himself from across h
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In the given case, James tried to persuade his clients by showing that he belongs to the high class of the society and maintains a high status. He did so by wearing the expensive clothes. Such persuation will result in perception that James is hardworking and trusted.

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There are basically five factors which determine the demand of products function in an organization are as follows:

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