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Archy [21]
2 years ago
10

Gardner electric has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. the t-bill rate is 4.00%, and the t-

bond rate is 5.25%. the annual return on the stock market during the past 4 years was 10.25%. investors expect the average annual future return on the market to be 12.50%. using the sml, what is the firm's required rate of return?
a. 12.22%
b. 11.92%
c. 11.63%
d. 12.52%
e. 11.34%
Business
1 answer:
coldgirl [10]2 years ago
8 0
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If the minority price for a single share of stock of a company is $20, if there are 500 thousand shares of stock, and a person o
KATRIN_1 [288]

Answer:

$4,500,000

Explanation:

current market price per stock $20

total stocks outstanding 500,000

corporation's total value = 500,000 x $20 = $10,000,000

investor's offer to purchase 100% at $14,500,000

controlling interest premium = $14,500,000 - $10,000,000 = $4,500,000

new price per stock = $14,500,000 / 500,000 = $29

The controlling interest premium equals the difference between the current market price of the stock and the purchase offer.

8 0
3 years ago
He utilitarian approach proposes that actions and plans should be judged by their consequences. research reveals that stakeholde
Usimov [2.4K]
According the utilitarian approach actions and plans should be taken<span> in a way that will produce the greatest benefit to society and produce the least harm at lowest cost and</span> judged by their consequences. The utilitarian approach proposes that actions and plans should be judged by their consequences. research reveals that stakeholders who have the ability to affect the company have​ the most power; whereas stakeholders that have​ legitimacy have a legal or moral claim on company resources.
7 0
3 years ago
This​ year, FCF Inc. has earnings before interest and taxes of ​$10 comma 400 comma 000​, depreciation expenses of ​$1 comma 000
krek1111 [17]

Answer:

Free cash flow is $8,925,000

Explanation:

Free cash flow is the net cash cashflow available for the shareholders or for the reinvestment after paying all capital expenditure.

Free Cash flow

Earning Before Interest and Tax            $10,400,000

Add: Depreciation expenses                  $1,000,000

Less: Capital expenditures                      ​$1,900,000

Less: Increase in net working capital     <u>$575,000    </u>

Free cashflow                                           $8,925,000

8 0
3 years ago
A company purchased new equipment for $80,000. The company paid cash for the equipment. Other costs associated with the equipmen
rosijanka [135]

Answer:

$93,500

Explanation:

Given that,

Purchased new equipment for cash = $80,000

Transportation costs = $2,000

Sales tax paid = $7,000

Installation cost = $4,500

Cost of equipment:

= Cash purchase price + Transportation cost + Sales tax paid + Installation cost

= $80,000 + $2,000 + $7,000 + $4,500

= $93,500

Therefore, the cost recorded for the equipment was $93,500.

7 0
3 years ago
Within the context of the circular flow of income model, what is the role of financial intermediaries?
Lesechka [4]

Answer:

The role that financial intermediaries play in that diagram of the economy is to leakage or inject money.

Explanation:

To begin with, the concept known as "Circular Flow of Income" refers to a model that is famously known in the economics sciences due to the fact that it is a graphic that shows how the primary entities of the economy of a country interact with each other in order to have a particular outcome expected in the diagram. Therefore that in that context, the financial institutions play the role of intermediaries inside the flow meaning that the can they can either leakage or inject money to the flow. The first one they do it by helping the households to save money in accounts. And the second one they do it by helping the private sector in terms of investing regarding businesses.

8 0
3 years ago
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