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dexar [7]
3 years ago
12

A risk analyst gives Oracle Corporation, the enterprise software and database management firm, a CAPM equity beta of 1.2. As of

May 2011, the risk free rate is 4.0 percent, the market risk premium is 6%, the analyst is forecasting for Oracle to have EPS of $2.17 per share and P/E ratio to be 20, for the fiscal year ending May 31, 2012. The company is expected to pay $0.24 in dividends per share for the fiscal year.
The equity cost of capital for Oracle is:__________The value per share of equity for Oracle in May 2011 is:________
Business
1 answer:
KengaRu [80]3 years ago
6 0

Answer:

Cost of equity = 11.20%, Value of Equity = $39.25

Explanation:

a. Cost of equity = Rf + B(Rm-Rf)

Cost of equity = 4% + 1.2(6%)

Cost of equity = 4% + 7.20%

Cost of equity = 11.20%

b. P/E ratio = 20

Market Price / EPS = 20

Market Price = EPS * 20

-->P1 = $2.17 * 20 = $43.40

DPS1= $0.24

Value of Equity = P1/Cost of Equity + DPS1/Cost of equity

Value of Equity = $43.40/1.1120 + $0.24/1.1120

Value of Equity = $39.03 + $0.22

Value of Equity = $39.25

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Answer: b. Core competencies

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To be classified as a core competency, the activity must provide superior value or benefits to the end-user, should be difficult to replicate or imitate by a competitor and sometimes rare.

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4 years ago
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also i
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Answer:

1. $46,000

2.$46,000

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According to the scenario, computation of the given data are as follows,

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3 years ago
Every saturday morning jack read for 30in play baskeball for 60 min and ride his bike if jack
Tanya [424]

Answer:

Explanation:

I am sorry but please give detailed question

3 0
3 years ago
Two or more subsystems working together to produce more than the total of what they might produce working alone is called ______
Marysya12 [62]

Two or more subsystems working together to provide greater than the full of what they might produce running alone is called Synergy.

Production is the process of combining various material inputs and immaterial inputs (plans, information) with the purpose to make something for consumption (output). it's far the act of making an output, a great or provider which has a fee and contributes to the utility of individuals.

Produce here refers to “clean fruits and vegetables”. it is the noun version of that phrase, not the verb, and so its pressure falls on the first syllable. consequently, the produce aisle is the location where such things are found.

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3 0
2 years ago
You can best deal with visitors that drop into your office by A. telling them you are busy now and suggest an alternative time t
Katyanochek1 [597]
Hi!

That's a funny one xD


The correct answer is A
Tell them you are busy now and suggest an alternative time to talk.

The other options are not good because if you just tell them you are bus now, you will lost the client. They will think you are not care for them. You can't tell them to make an appointment with your assistant because they want to talk with you,not the assistance. OMG always keeping the door closed is the worst xD. It shows that you don't welcomed people so you wouldn't have enough client.


I hope this helps!
4 0
3 years ago
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