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REY [17]
3 years ago
12

Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. What is the present value of its growth oppo

rtunities (PVGO) if the required return is 12%?
Business
1 answer:
Gnesinka [82]3 years ago
6 0

Answer: $0.25

Explanation:

Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.

The present value of its growth opportunities (PVGO) will be:

= $50 - ($5.97/12%)

= $50 - ($5.97/0.12)

= $50 - $49.75

= $0.25

Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.

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What options are available on the Group, Sort, and Total pane? Check all that apply.
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Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researchin
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All of these are valid concerns and very relevant indeed, but the most problematic situation would be:

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The problem with Russia is that when their leaders want a private company they just take it away from its rightful owner and many times when the rightful owners complain they are sent to prison and beaten up to death. This may sound crazy but it happened several times including Russia's largest private company Yukos in 2003. Its owner whose last name is Jodorkovski was sent to prison for about 10 years, and its CFO was beaten to death while being held in a Siberian prison.

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The strong form of efficient market theory states that: I stock prices instantaneously reflect all publicly available informatio
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<em>According to the</em><em> strong version of efficient market theory,</em>

  • <em>Instantaneously, </em><em>stock prices reflect both public and private information.</em>
  • <em>There is</em><em> no advantage for insiders when choosing investments.</em>
<h3>What exactly is the efficient market theory?</h3>
  • Share prices, according to the efficient market hypothesis (EMH) or theory, accurately reflect all available information.
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<h3>What significance does the efficient market hypothesis have?</h3>

The efficient market hypothesis adheres to liberal economic theory and has significant political ramifications. According to the efficient market hypothesis, stock prices are always traded at a "fair" market value, negating the necessity for any form of government involvement in the market.

learn more about efficient market theory here <u>brainly.com/question/14311423</u>

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