Answer:
im sorry i cant see the picture what is it sorry
Answer:
Based on my research I believe that the answer is 'A. Fixed Cost'.
Explanation:
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Price of share is $12.2. Future dividend is therefore expected to grown by 4.5%. To find the rate of return i.e. K, we will do the following steps:
= 0.36(1.045)/12 = 0.03135+4.5 = 4.53135
Therefore, rate of return is 4.53%.
Answer:
The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23
Explanation:
Provided data;
90000 value portfolio with expected returns of 11% and beta of 1.20
($10 × 1000) = 10000 value Alpha Corp added with expected returns of 13% and beta of 1.50.
The new expected portfolio return =
rp = 0.1 × 13% + 0.9 × 11%
rp = 0.1 × 0.13 + 0.9 × 0.11
= 11.20%
The new expected portfolio beta =
bp = 0.1 × 1.50 + 0.9 × 1.20
bp = 1.23
Answer:
$75 million
Explanation:
Firm's value = FCF1 / WACC - growth
Equity Value = Firm's value - Debt value
Intrinsic value per share = Equity Value / Number of shares
Therefore Firm's value = $75.0 million / (0.10 - 0.05) = $1,500 million
Equity Value = Firm's value - Debt value = $1500 - 0 debt = $1,500 million
Intrinsic value per share = Equity Value of $1500 / 20 million shares =
$75 million