1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Which of the following accurately describes the requirements banks must meet under a fractional reserve banking system? A. Banks
ikadub [295]

Answer:A,B,E,F

Explanation:

Just took the test

5 0
3 years ago
True or false: The many legal barriers in place around the world makes it difficult to buy securities from foreign companies.
Margarita [4]

Answer:

false

Explanation:

thanks to expanded communications and the relaxation of many legal barriers, investors can buy securities from companies anywhere in the world.

6 0
1 year ago
Which of the following roles is typically associated with the project manager? ​ a. assigned by the performing organization to l
DochEvi [55]

Answer:

The role typically associated with the project manager is that he is assigned by the performing organization to lead the team that is responsible for achieving the project objectives - option A

Explanation:

One who is a professional in the field of project management is known as a project manager. He has the responsibility of the planning, procurement and execution of a project, in any undertaking that has a defined scope, defined start and a defined finish; irrespective of the type of industry.

The project manager is responsible for ensuring that everyone on the project team knows and executes his or her role, feels empowered and supported in the role, knows the roles of the other team members and acts upon the belief that those roles will be performed.

The specific responsibilities of the project manager varies depending on the industry, the company size.

However, some responsibilities that are common to all project managers include:

  • Developing the project plans
  • Managing the project stakeholders
  • Managing communication
  • Managing the project team
  • Managing the project risks
  • Managing the project budget
  • Managing the project conflicts
  • Contract administration
  • Managing the project schedule

Thus, the role typically associated with the project manager is that he is assigned by the performing organization to lead the team that is responsible for achieving the project objectives - option A

All the other options are incorrect.

3 0
3 years ago
Kathryn is looking for ideas on how best to grow her small business. She and her three partners sit down to brainstorm suggestio
bazaltina [42]

Answer:

B

Explanation:

So you dont waste ur time

5 0
3 years ago
How does the payment of rent for equipment affect the accounting equation? assets increase; assets decrease assets decrease; sto
djverab [1.8K]
The answer to this question is <span>assets decrease; stockholders' equity decreases 

The journal for this transaction would be

Debit:  Rent expense       xxxxx
Credit:         Cash                                xxxx
 
 Since cash is considered an asset, it will decrease asset if it placed on credit.
 Since expense will reduce net income that will be allocated to stockholders' equity, it will reduce stockholders' equity when placed on debit     </span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • What does apartheid mean and what country in africa practiced it?
    12·1 answer
  • When you are willing to pay $5 for a hamburger but you pay $4 for it, your consumer surplus for the hamburger is:?
    11·1 answer
  • Can South Africa afford to have a totally free trade with the rest of the world?
    7·2 answers
  • You speculate in crude oil futures. Last month, you purchased ten January futures contracts at a quoted price of 99.91. These co
    15·2 answers
  • If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%, then its beta equals:
    15·1 answer
  • Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate
    15·1 answer
  • Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false.
    15·1 answer
  • ​J&amp;J Materials and Construction Corporation produces mulch and distributes the product by using dump trucks. The company use
    6·1 answer
  • For a new Madden video game, EA Sports decides to have Patrick Mahomes on the cover and run an ad campaign on ESPN. After the ad
    15·1 answer
  • It is important for a good economic model to predict cause and effect so that it can?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!