Answer:
the question is false
Explanation:
you can't sell stock for ownership
Answer:
a) The required rate of return is 14.75%
b) The expected return on this stock is 16% which is more than its required rate of return 14.75%, thus it is underpriced.
Explanation:
a)
Using the SML equation, we can calculate the required rate of return (r) of a stock.
r = rFR + β * (rM - rFR)
r = 6% + 1.25 * (13% - 6%)
r = 0.1475 or 14.75%
b)
The SML shows the return that is required on a security based on the risk is carries. Using SML we calculate the required rate of return which is the percentage return that investors require a security to provide.
If the expected return is greater than the required rate of return which means that security is expected to provide more than is required then the security is underpriced.
The expected return on this stock is 16% which is more than its required rate of return 14.75%, thus it is underpriced.
The instrument that Shawn must use is “payable to the order of” before the name of the payee.
<h3>Requirements of Negotiability </h3>
- The first of the four major considerations is whether or not a paper is negotiable, and it is one that nonlawyers must address.
- Auditors, retailers, and financial institutions frequently handle notes and checks and must make quick decisions about negotiability.
- In a negotiable instrument, the only permissible promise or direction is to pay a particular sum of money. Any other promise or command renders negotiability null and void
- This restriction exists to prohibit an instrument from having an uncertain value.
- If the bearer of a negotiable instrument had to examine whether a provision or condition had been met before the thing had any value, the utility of the object as a substitute for money would be severely diminished.
Hence, the instrument that Shawn must use is “payable to the order of” before the name of the payee.
To learn more about the Negotiation instrument refer to:
brainly.com/question/9312091
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Answer:
Edelman's market/book = 2.29
Edelman's EV/EBITDA = 10.52
Explanation:
Firstly, we need to calculate enterprise value (EV) & fiem value (FV) of Edelman Engines as below:
EV = Market value of equity + Net market value of debt
= Stock price x Number of share outstanding + (Debt - Cash)
= 24 x 0.3 + (3.25 + 1 - 0.09) = 11.36
FV = Market value of equity + Market value of debt
= Stock price x Number of share outstanding + Market value of debt
= 24 x 0.3 + 3.25 + 1 = 11.45
Edelman's market/book = FV/Total asset = 11.45/5 = 2.29
Edelman's EV/EBITDA = 11.36/1.08 = 10.52
Answer:
Appropriate Terminology
a. If Kevin's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions supplied, you would advise your coworker to construct -------- using the data provided.
bar chart or histogram
b. However, if Kevin's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that a -------- would be more appropriate.
table
Explanation:
A bar chart or graph represents categorical data with rectangular bars. It can be used to visualize data distributions, compare data groups, and to track periodic changes in data. Tables are versatile organization tools that can communicate information with or without the use of other graphical tools.
