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Annette [7]
3 years ago
11

Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6%

per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2. Torque's stock price is
Business
1 answer:
dezoksy [38]3 years ago
7 0

Answer:

The answer is "\$11.62 \ (approx)"

Explanation:

Using formula:

\text{Required return=risk free rate}+\text{beta}\times \text{(market rate-risk free rate)}

=5+(13-5) \times 1.2\\\\=14.6\%\\\\\text{Intrinsic value}=\frac{D_1}{\text{(Required return-Growth rate)}}\\\\= \frac{1}{(0.146-0.06)}\\\\= \frac{1}{(0.140)}\\\\=\$11.62\ (Approx)

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Answer:

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Explanation:

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Therefore for computing the spending variance for dye costs we simply applied the above formula.

4 0
3 years ago
You purchased stock for $18,000 ten years ago. Now the stock is worth $25,000. What was your annual rate of return?
Paraphin [41]

Answer:

3.3%

Explanation:

The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year.

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Formula:

Annual return = (\frac{futurevalue}{presentvalue}) ^{1/time} -1

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6 0
3 years ago
According to business analyst Scott Anthony, identifying opportunities requires understanding of:_________
Maurinko [17]

Answer:

the 5Cs of opportunity identication:

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1. Circumstance: Know the specific problems which your customers care about and how they get solutions to it.

2. Context: Know what the customer did in the past and work around it to present something realistic.

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