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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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The question is about Audit procedures of inventory that differ if

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- Complete inventory can be counted.

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- Floor to record and record to floor can both be tested appropriately.

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- Sample based count.

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2 years ago
Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department
avanturin [10]

Answer:

d. A debit to Work-in-Process Inventory, Finishing Department of $140,000.

Explanation:

Cost of unit transferred = $4 x 35,000 = $140,000

Cost incurred by mixing department is $4 which so the transfer of cost from mixing department to finishing department will be $140,000 for 35000 units. This cost will be recorded in the work in process inventory account of finishing department. As we know that WIP account has debit nature so same entry will be done to record an expense incurred in mixing department.

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Which of the following gave workers a reason to form early unions?    
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I believe the answer is B because unions serve to protect workers' rights
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Drag and drop the steps of the DG pickup process into the correct order then click submit
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<h3>What is a Pickup Service?</h3>

This refers to a type of service which is used to deliver goods from one location to a customer at his preferred location.

With this in mind, we can see that the correct steps of making use of online pickup service such as DG pickup is shown as there needs to be the installation of the app, then to add the items to the cart and finally checkout.

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