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Dvinal [7]
3 years ago
13

ne of the most important components of stock valuation is a firm’s estimated growth rate. Financial statements provide the infor

mation needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.’s stock (Ticker: PAMC) is trading at $16.25. • The company’s stock is expected to pay a year-end dividend of $0.78 that is expected to grow at a certain rate. • The stock’s expected rate of return is 7.80%. Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate?
Business
1 answer:
SVEN [57.7K]3 years ago
8 0

Answer:

7.752 %

Explanation:

The growth can be calculated as follows:

P_{o} = \frac{D_{i} }{(r_{s} - g) }

16.25 = \frac{0.78}{7.80-g}

Making g the subject of formula yields:

16.25 (7.80 - g) = 0.78\\          7.80 - g   = 0.048\\                     g   = 7. 752

Therefore, the growth will be 7.752 %

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Most economists believe that only a small gap between the wages of white males and the wages of other groups is due to education
xz_007 [3.2K]

Answer:

The answer to the question is TRUE

Explanation:

Education is one of the most influential determinants of wages, so it is a contributing factor to the racial wage gap. Different levels of education between races lead to different salaries for different racial groups. Education affects wages as it allows access to higher status occupations that offer higher profits.

When the education of the different groups becomes more equal, the wage differences decrease, although they do not disappear.

The racial wage gap of blacks and whites has been observed to differ in the public and private sectors. When the education of the different groups becomes more equal, the wage differences decrease, although they do not disappear.

Having a university degree worsens the gap, contrary to the belief that education is key to a more egalitarian society.

The growing inequality has had a greater impact among young black graduates with university degrees in the years after the Great Recession than during any other period.

In the particular case of race, it could be said that because black individuals are on average poorer and receive lower quality education, employers prefer not to hire them, however many of the black candidates may be better able to perform the job. than the average white workers. In this case, the best educated black individuals get lower salaries due to the characteristics assigned to the group in general.

The failures that occur in the labor market are caused by the low investment in human capital that they acquire as children, which is transformed into productive human capital in adulthood.

Parental education significantly increases the returns of children's education.

Although African Americans and whites had access to similar levels of education, almost 6 percent of blacks who had higher education had no job, while among whites unemployment stood at almost half, with 3.5 Percent of unemployed among graduates.

3 0
3 years ago
Suppose that a local supermarket sells apples and oranges for 50 cents apiece, and at these prices is able to sell 100 apples an
dezoksy [38]

Answer:

e. price elasticities of demand for apples and oranges are the same over these price ranges

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Price elasticity = percentage change in quantity demanded / percentage change in price

Percentage change in price = (50-40) / 50 = 0.2 × 100 = 20%

Percentage change in quantity demanded of Apples = (120 - 100) / 100 = 0.2 × 100 =

20%

Percentage change in quantity demanded of oranges = (240 - 200) / 200 = 0.2 × 100 = 20%

Price elasticity of demand for oranges = 20% / 20% = 1

Price elasticity of demand for Apples = 20% / 20% = 1

When coefficient of elasticity is equal than one, elasticity of demand is unit elastic.

This implies that the elasticity of demand for Apples and oranges are the same. A change in the price of oranges and apples would lead to the same proportional change for each of the demand for Apples and oranges.

I hope my answer helps you

7 0
3 years ago
Glenda is in the ninth grade, and she loves to write and share events that take place around her. She wants to become a journali
madam [21]

Answer:

D

Explanation:

This will help her develop journalism skills at a younger age

4 0
3 years ago
Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand curve lies everywhere below the
dsp73

Answer:

C. Shut down the presses printing my book

Explanation:

Since the average variable cost of producing the book is above the demand curve, the best course of action is to shut down the printing (production) of more books. The author would lose less money by shutting down operations rather than continuing production at a variable cost higher than the demand he's receiving for the books.

In economics, when profit is less than the average variable cost, firms are advised to stop production in the short run and incur economic loss on fixed inputs. This is because with continued operations, total revenue would not only be lower than total cost, but rather, would also be less than total variable cost.

8 0
3 years ago
U GET 25 points r more and brainlest
vazorg [7]

HELP ME!!! my family is driving me insane

4 0
3 years ago
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