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gladu [14]
3 years ago
11

Your broker has recommended that you purchase stock in Alacan, Inc. She estimates that the 1-year target price is $63.00, and Al

acan consistently pays an annual dividend of $7.00. Based on your analysis, you estimate that the stock has a required rate of 15.00%. What is the intrinsic value of this stock?
Business
1 answer:
Bogdan [553]3 years ago
3 0

Answer:

$60.87

Explanation:

You can solve this question using time value of money concept. Since this is a  dividend paying stock, the recurring dividends are annuities, next year's price is the future value, total duration is 1 year. Use these to calculate the current price; PV

Total duration; N = 1

Interest rate per year ; I/Y = 15%

Future value; FV = 63

Recurring dividend payment; PMT = 7

then compute the present value; CPT PV = 60.87

Therefore, the intrinsic value of this stock is $60.87

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A bakery buys sugar in 15-pound bags. The bakery uses 5000 bags of sugar each year. Carrying costs are $20 per bag per year. Ord
Marianna [84]

Answer:

the total cost of ordering and holding sugar is $1,000 per year

Explanation:

<em>Step 1 Calculate the Economic Order Quantity(EOQ).</em>

EOQ = √(2×Total Demand×Ordering cost)/ Holding Cost per Unit

        = √(2×250×20×5)/20

        = 50

<em>Step 2 Calculate the total  cost of ordering and holding sugar</em>

Total cost = Ordering Cost + Holding Cost

                = (250×20)/50 × $5 + 50/2 × $20

                = $500+$500

                = $1,000

Therefore,  the total cost of ordering and holding sugar is $1,000 per year

3 0
4 years ago
The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.
muminat

Answer:

The correct answer is A that is late start date.

Explanation:

Late start date is the filed which comprise of the latest date on which a task could be started without delaying the finish of the project.

The date is grounded on the date when the task is started and also on the late start of the task, late finish dates of the tasks predecessor and the successor as well and also on other constraints.

So, the late start date for the activity is the latest possible time.

7 0
4 years ago
A phone call to a government official by an employee of the enron corporation disclosed the deception and dishonesty of the firm
UNO [17]
This employee played the role of a: whistleblower.
3 0
3 years ago
Yucca Co. updates its inventory periodically. The company's beginning inventory was $4,860 and purchases were $10,080 during the
erastovalidia [21]

Answer:

the cost of goods sold is $5,940

Explanation:

The computation of the cost of goods sold is shown below:

As we know that

Cost of goods sold is

= beginning inventory + purchase made - ending inventory

= $4,860 + $10,080 - $9,000

= $5,940

Hence, the cost of goods sold is $5,940

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0
3 years ago
Consider the market for mobile applications, smartphones, and conventional phones. For each pair, identify whether they are comp
Bogdan [553]

Answer and Explanation:

The complementary goods are those goods which are used together while on the other hand the substitute goods are those goods that are used in place of one another

Based on this, the classification is as follows

1. Complementary goods

2. Substitute goods

3. Substitute goods

The above represents the classifications

8 0
3 years ago
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