Your awnser is B because if you take a loan you have to pay it back which means you didn’t earn anything more than what you already had
<span>The statement about "Microsoft studies correlations between its successful workers and the schools and companies they arrived from, an application of business analytics" is true. The answer is letter B. An example is a paper called Diamonds in the Data Mine by Gary Loveman, the CEO of the Harah's gambling empire. He wanted to know how data-mining software was used to study numerous amounts of casino customer data to target profitable sponsors. So the statement above aids in the recruitment of these sponsors using data-mining software such as microsoft.</span>
Tbh I'm New At This But It Says I Need To Have Like 20 Words In The Answer But 30 Is The Answer I'm Pretty Sure
The answer is C (from left to right): Treasury Bond, Diversified Mutual Fund, Stocks
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
