Answer:
the share should sell at $46
Explanation:
We use the CAPM method to know the required return of the capital
risk free 0.04
market rate 0.1
beta(non diversifiable risk) 2
Ke 0.16000 = 16%
Now we calculate with the dividends grow model the intrinsic value of the share:
$4.6/0.1 = $46
Answer:
The Net Present Value is - $20324
Explanation:
We can use our financial calculator to work out the NPV using the cashflows from the different periods and using the discount rate given. Which is 18%.
We have 11 periods. Starting off with CF 0. ( CF = cashflow ) We will work in Thousands to make it easier to read and compute. $ ' 000
CF 0 Machine Investment (750) Working Capital Investment (25) Total=(775)
CF 1 160 inflow
CF 2 160 inflow
CF 3 160 inflow
CF 4 160 inflow
CF 5 160 inflow
CF 6 160 inflow
CF 7 160 inflow
CF 8 160 inflow
CF 9 160 inflow
CF 10 160 inflow
CF 11 160 inflow. 35 salvage value from machine. Working capital 25. Total Cashlow = 220
We now use our financial calculator and input these amounts into the calculator.
We start of by entering the data and hitting ENT and do so for every Cash flow. At the end we press 2nd function CFI on our calculator. We then enter the discount rate of 18%. and press down button to get to NPV and then press COMP.
We get an answer of -20,32400407
We now need to put the amount into thousands. Thus = -20324,004
rounded to the nearest dollar we get - $ 20324
Answer:
She violated the duty of loyalty
Explanation:
One of the fiduciary duties of a director is to always act in the best interest of the company .
Similar to this is the duty of loyalty that prevents the director from acting against the interest of the company and also guide the director against activities that could bring conflict of interest whereby he is involved in reaping personal benefits from the position she occupies .
This describes Wendy's action of personal dealing based on her position as the president of Kite sale
Answer:
The contract would be described as <em>International Contract.</em>
Explanation:
<em>International Contracts: </em>International contracts refers to a legally binding agreement between parties based in different countries, in which they are obligated to do or not do certain things. International contracts may be written in a formal way such as the example of Frank contracting an Indian television provider.
Consequently, Frank and the Indian television provider having entered into a contract, are governed by international contract law unless they agree to abide by the laws of one of the US and India.
Moreover, <em>International sales contracts </em>are governed by the <em>United Nations Convention on Contracts for the International Sale of Goods (CISG) from 1980.</em>
In most cases for this type of questions you would have to use a calculator, since this is not a value that can be approximated. Do you have an inverse normal function on your graphical calculator?
