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dezoksy [38]
3 years ago
12

Google stock has a beta of 1.39. The risk free rate in the economy is 2.00% while the market portfolio risk premium is 7.00%. Go

ogle is currently priced at $862.00 per share. Google will not pay a dividend in the near future. If the stock meets its required return over the next five years, what is an estimate for its selling price five years from today
Business
1 answer:
salantis [7]3 years ago
8 0

Answer:

Explanation:

first of all we need to identify required rate of return

as per the given date in the question we can apply Capita asset pricing model to identify the Ke that is cost of equity.

We have

Ke = Rf+(Rm-Rf)*beta

Ke=2%+(7%-2%)*1.39

Ke=2%+(5%)*1.39

Ke=2%+6.95

Ke=8.95

Now we need to identify the share price after five year with same return

Share price =  862*(1+8.95%)^5

Share price after five year = 1323.255

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Groups such as the Ku Klux Klan have been determined by the Courts to be religious organizations, and as a result an employer mu
NARA [144]

Answer: False

Explanation:

Title VII of the Civil Rights Act of 1964 expressly forbids the discrimination of groups based on race which is what the Ku Klux Klan stands for.

As a result, the employer does not have to accommodate the employee's deeply held beliefs if they will cause a violation of Title VIII in the operations of the company.

4 0
3 years ago
A minor bought an Ernie Banks baseball card from a baseball card store. The card was marked $12, and the inexperienced clerk who
krok68 [10]

Answer: No. The owner cannot get the card back because of the minor’s lack of capacity

Explanation:

From the information given, we are told that a minor bought a baseball card from a baseball card store for $12, even though the price was $1,200.

It should be noted that the owner cannot get the card back based on the minor’s lack of capacity. In this case, the idea is to protect the minor, therefore the minor who bought the baseball card is the one that can disaffirm or cancel the contract. In this case, the adults are bound to the contract.

The baseball card will only be gotten if the minor wishes to give it back.

4 0
3 years ago
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Sholpan [36]
What new laws to the New York factory investigating commissions request check all that apply

1. no factory workers under age 10
3. a minimum wage for all workers
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3 years ago
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3 years ago
Last week, michelle spent $30 on caviar. today, michelle still spends $30 on caviar even though its price has doubled. what is m
Liula [17]
Price elasticity of demand describes how the quantity demanded changes with a change in price. It describes how responsive demand is to price. 

The formula for elasticity is:
e = %change in Quantity ÷ % change in price
Keep in mind that this number will almost certainly be negative, since an increase in price should decrease demand. 

The problem tells us that price has doubled. This represents a 100% increase in price: Michelle still spent $30 dollars, although this $30 bought her half as much caviar since the price is twice what it was. This means her quantity demanded, or purchased, fell by 50%. 

e= -50% ÷ 100%
e = -0.5

This tells us, more generally, that a x% increase in the price reduces demand by x/2%. 
4 0
3 years ago
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