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katen-ka-za [31]
4 years ago
14

If earnings are expected to grow at a constant rate over time of 0.03 and investors' rate of discount is constant at 0.04, and i

f earnings last year were $152, then the fundamental value of the stock market would be_______
Business
1 answer:
Usimov [2.4K]4 years ago
7 0

Answer:

The answer is $15,656

Explanation:

Formular: P = D * \frac{1 + g}{k - g}

P represent estimated stock price or value = ?

D represent last dividend paid = $152

k represent discount rate = 0.04

g represent growth rate = 0.03

Using the fomular above; P = $152 * \frac{1 + 0.03}{0.04 - 0.03}

P = $152 * \frac{1.03}{0.01}

P = $152 * 103 = $15,656

:. The fundamental value of the stock market would be $15,656

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Answer:

b. The internal rate of return on the project is less than 12%

Explanation:

Net present value = present value - amount invested

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I hope my answer helps you.

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A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000
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<h3>What is a total asset?</h3>

When all assets and liabilities are taken into account, a person's total assets indicate the value of all they own. Anything that a person or business owns, like a car or stock, is considered to be an asset. An asset is bought by people or businesses because they believe its value will rise in the future.

<h3>What is the formula for total assets?</h3>

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<h3>What is total assets and how is it calculated?</h3>

By adding your obligations and equity, you may calculate your total assets. The simplest way to get total assets using this technique is to deduct the value of liabilities from the value of equity or assets because liabilities have a negative value.

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Answer: e

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