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natta225 [31]
4 years ago
5

Kevin owns one share of Acme, Inc. stock. He purchased the stock three years ago for $29. The stock is currently trading for $29

.50 per share. The stock has paid the following dividends over the past three years. o Year 1: $1.50 o Year 2: $2.00 o Year 3: $2.50 What is the compounded rate of return (IRR) that Kevin has earned on this investment
Business
1 answer:
kogti [31]4 years ago
6 0

Answer:

Find below the multiple choices:

5.6%.

6.6%.

10.1%.

7.35%

The last option ,7.35% is correct

Explanation:

The excel IRR formula can be very useful in determining the IRR for the investment in stock, the formula is stated thus:

=IRR(values)

the values in the case are the cash flows (inflows and outflows) arranged from the earliest to the latest as shown in the attached spreadsheet.

Download xlsx
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5. Use excel?s irr function for this problem. Rancho cucamonga has a 6% cost of capital. The firm has an investment opportunity
Lera25 [3.4K]

IRR function for this problem exists 7. 7% and invest in the project.

<h3>What is the IRR function?</h3>

Microsoft Excel exists a spreadsheet designed by Microsoft for Windows, macOS, Android, and iOS. It features calculation or computation capabilities, graphing instruments, pivot tables, and a macro programming language named Visual Basic for Applications.

The Excel IRR function returns the internal rate of return (IRR) for a sequence of cash flows that emerge at regular intervals. Specify the internal rate of return. Return was computed as a percentage. =IRR (values, [guess]).

IRR stands for the interest rate at which the sum of all cash flows equals zero, thus it exists useful for comparing one investment to another. In the initial example, if we substitute 8% with 13.92%, the NPV evolves to 0, and your IRR becomes zero. As an outcome, IRR is described as the discount rate at which a project's NPV becomes zero.

IRR function for this problem exists 7. 7% and invest in the project.

To learn more about  IRR function refer to:

brainly.com/question/7920964

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4 0
2 years ago
Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly trained and well respected b
AlladinOne [14]

Answer:

e. All of these are accepted.

Explanation:

If Vaughn was facing a significant decision. and Vaughn uses the classical model of decision making, then all the assumptions below will not be rejected

a. The decision maker is rational and uses logic in assigning values and evaluating alternatives.

b. The desired decision will maximize attainment of organizational objectives.

c. The decision-maker strives for complete certainty, gathering complete information.

d. Problems are precisely formulated and defined.

The reason for such conclusion is that the classical model which Vaughn uses prescribes the best way to make decisions, based on four assumptions:

- a clearly defined problem,

- eliminated uncertainty,

- access to full information, and

- rational behavior of the decision-maker.

These four conditions are same as those faced be Vaughn in the given scenario.

4 0
4 years ago
Some global corporations are large enough to create major changes in the external environment. Group of answer choices True Fals
Harrizon [31]

Some global corporations are large enough to create and influence major changes in the external environment: False.

<h3>What is a corporation?</h3>

A corporation refers to a corporate organization that has facilities and owns assets that are used for the production of goods and services in at least one country, other than its headquarter which is located in its home country.

However, it is false to infer or state that some global corporations are large enough to create and influence major changes in the external environment.

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3 0
2 years ago
William ibbs, a professor at the university of california at berkeley, found that high project management maturity results in __
ozzi

William Ibbs, a professor at the university of California at Berkeley, found that high project management maturity results in lower direct costs of project management.

Project management is the process of directing the work of a team to achieve all project goals within given constraints. This information is typically documented in the project documentation created at the beginning of the development process. The main constraints are scope, time and budget.

Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives within agreed parameters and according to project acceptance criteria. Project management has the end result of being constrained by tight time frames and budgets.

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8 0
2 years ago
Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per
Oksanka [162]

Answer:

$10

Explanation:

Interior airline is expected to make a dividend payment of $3

The growth rate of the dividend is 10%

The risk free rate of the return is 4%

The expected return on the market portfolio is 13%

The stock beta of interior airline is 4

The first step is to calculate the cost of equity

r= 4% + 4(13%-4%)

r= 4% + 4(9)

r= 4% + 36

r= 40%

Therefore, the value of the stock using the constant growth DMM can be calculated as follows

Value of the stock= 3/(40/100-10/100)

= 3/(0.4-0.1)

= 3/0.3

= $10

Hence the value of the stock is $10

4 0
3 years ago
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