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Verizon [17]
2 years ago
8

A share of stock is now selling for $75. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do i

nvestors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of return on the market is 13%. (Round your answer to 2 decimal places.)
Business
2 answers:
shepuryov [24]2 years ago
8 0

Answer:

Sell Price= $1044

Explanation:

Equity Risk Premium = Market Return - Risk Free Rate

= 13 - 5

= 8%

Risk Free Rate = 5%

Beta = 1  

Expected Return on stock = Risk-free rate + Equity risk premium * Beta for stock

= 5 + 1*8 = 13%

Current Price = Present Value of Future Payments

75 = 6*(1+i)^-1 + Sell Price*(1+i)^-1 , where i=13%

Sell Price = 74.572/0.0714

Sell Price= $1,044

nydimaria [60]2 years ago
7 0

Answer:

$80.31

Explanation:

since the stock's beta = 1, its required rate of return = market rate of return, since the stock's risk is identical to the market's risk.

price of the stock in 1 year = current price + present value of future dividend

  • present value of the dividend = $6 / (1 + RRR) = $6 / (1 + 13%) = $5.31
  • current price = $75

price of the stock in one year = $75 + $5.31 = $80.31

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Maksim231197 [3]

Explanation:

Monotonous work: Sometimes monotonous work irritates the help desk.

Seeking for same information: When providing the same information again and again to a different customer.

Lack of work recognition: At times failing to appreciate the effort create stress.

Talking without rest: Continuously answering without taking a break might cause stress.

Work pressure: When the work pressure increases there is a possibility of stress being more.

Inflexible working hours: Change in life style due to change in work hours might create stress.

Work-life imbalance: This also act as a source for stress.

Taking regular medications, family pressure, undervalued pay scale everything counts for stress.

3 0
3 years ago
A client has been given atropine to cause mydriasis and cycloplegia. What is the expected outcome for this client?
Nady [450]

Answer:

dilation of the pupil and loss of accommodation

Explanation:

Mydriasis is the dilation of the pupil of the eye. The dilation causes vision to be blurry.

Cycloplegia on the other hand is the loss of accommodation of the pupil and it is caused by the paralysis of the cilliary muscle of the eye. This paralysis causes the eyes to lose its ability to focus on things nearby.

Looking at this two conditions from the administration of atropine, the expected outcome of the client is blurry vision and inability to focus or see things close by(farsightedness).

I hope this helps.

5 0
2 years ago
48. What does management say they are doing to assure the public that the financial information is reliable
WARRIOR [948]

Answer:

Management of a company is responsible for integrity and objectivity of financial statements. It is management's responsibility to comply with all applicable accounting standards while preparing financial statements.

Explanation:

There should be strict internal controls in a company. A company management is responsible to comply with all laws, and prepare financial standards free from errors. There should be no window dressing and information presented should be reliable. A company management is also responsible to maintain effective internal control system.

6 0
2 years ago
Put the phases of the business cycle in the correct order in which they follow a recession.first phase depression recovery boom
Mama L [17]

Answer:

Depression, Recovery, Boom and Recession

Explanation:

A business cycle shows the increase and decrease in Gross Domestic Product (GDP) of the natural growth rate of a country's economy. This involves, employment, wages, productions, investments, prices and credits. The stages of business cycle include,  expansion, peak, recession, trough and recovery.

Expansion shows the boom in economy growth rate. A positive increase in employment, productions,  incomes, wages, demand, supply and profits happens at this stage.

Depression shows the decline in a country's economic growth. It results in high rate of unemployment.

Peak is the stage where a country's economy rises. It involves increase in the economy's growth rate.

Recession is the stage where there is rapid and steady decline in the demands for good and services.  

Trough shows how an economy's growth rate decreases.  At this stage, banks do not lend out money.

Recovery involves change from negative to positive economic growth rate. The economy continues to improve until it stabilizes.

6 0
3 years ago
Carolina Biological Supply Company sells science instructional materials. It wants to grow beyond the current customer base and
mario62 [17]

Answer:

The correct answer is letter "A": research and validate marketing opportunity, identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity.

Explanation:

In an attempt to expand their operations, companies must analyze the market where they are planning to handle businesses. For such a purpose, entities must use two important tools which are segmentation and targeting. Segmentation is the classification of the market that differentiates customers by different features such as age, gender or income.

Targeting refers to selecting a specific sector of the market to whom the product planned to be manufactured will be offered. The steps an organization should follow to conduct the segmentation and targeting correctly are:

  1. <em>Research and validate marketing opportunity (in the beginning) </em>
  2. <em>Identify business needs </em>
  3. <em>Segment total market </em>
  4. <em>Profile target customer segment </em>
  5. <em>Research and validate marketing opportunity (at the end)</em>
5 0
3 years ago
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