Answer:
Stock Y is overvalued and Stock Z is undervalued.
Explanation:
The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.
The required rate of return on the stock is calculated under the CAPM approach suing the following formula.
r = rRF + Beta * rpM
Where,
- rRf is the risk free rate
- rpM is the risk premium on market
r of Stock Y = 0.052 + 1.3 * 0.077 = 0.1521 or 15.21%
The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.
r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%
The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.
Answer:
The $1,000,000 is the dividend amount which were paid to shareholders during the year
Explanation:
The computation of the dividend paid is shown below
As we know that,
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
So
$770,000,000 = $716,000,000 + $55,000,0000 - dividend paid
$770,000,000 = $771,000,000 - dividend paid
So, dividend paid = $1,000,000
The consumer confidence index published by the conference board measures consumer <u>a. sentiment</u>.
The confidence index is posted by means of the conference Board and measures investor outlook on the financial system and the markets - hence it is a measure of patron sentiment.
The confidence index will tell you how positive you may be that your remedy may have an equal effect (as befell in your experiments) on the whole population. it is a conference for scientists to document their facts with a p-value, and even though it is much like a confidence index, it is not identical.
A patron self-belief index (CCI) is an economic indicator posted through numerous agencies in numerous countries. In easy terms, elevated customer confidence shows a financial increase in which clients are spending cash, indicating higher consumption.
Learn more about the confidence index here brainly.com/question/4300488
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Answer:
Always start from landing pages with very high traffic. This is simply so because if you want to determine the opportunities associated with contextual marketing, you want to start where you will get a plethora of views on the pages.
Explanation:
