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3 years ago

14

Suppose you have a Xbox your roommate wants, and your roommate has a iPod that you want. You decide to trade the Xbox for the iP

od. You have engaged in what economists call

1 answer:

Lelu [443]3 years ago

6 0

Answer:

Communism..............................

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Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0

4 years ago

A bank will not require security in the form of collateral as a guarantee the loan will be repaid.

Flauer [41]

The answer is so true

6 0

3 years ago

Read 2 more answers

On July 31, the bookkeeping account Supplies Inventory shows a debit balance of $1,000. A physical inventory taken on that date

Tanya [424]

Answer:

$200

Explanation:

When Supplies inventory are purchased, a debit is posted to Supplies inventory and a credit to cash account or accounts payable.

As the inventories are used, debit Supplies expense and credit Supplies inventory account.

Given that $1,000 was the debit in the books and $800 per count, it means the books balance needs to be written down to the physical balance. The difference to be posted

= $1,000 - $800

= $200

This will be done by

Debit Supplies expense $200

Credit Supplies Inventory $200

Being entries to record inventory used in July

4 0

3 years ago

It is important to find a hotel that has a five star rating to base the training off of. what aspect of service quality would th

kramer

The aspect of service quality would be the objective measure of goodness.

<h3><u>What is service?</u></h3>

In contrast to products, which we can physically touch or handle, services are the non-physical, intangible components of our economy.
The majority of the economies of the wealthy countries are based on services like banking, education, healthcare, and transportation.
They also represent the bulk of the economies of the developing countries.
There is no transfer of ownership when a business offers a service and the client pays for it. We are unable to ship or store a service.
They are only present as long as the customer is consuming them and the provider is supplying them.

For instance, getting a haircut is a service that cannot be stored or transported.

Know more about service with the help of the given link:

brainly.com/question/12505990

#SPJ4

8 0

2 years ago

On december 2017 coolwear had a balance in its prepaid insurance acount of 68,400. During 2018, 106,000 was paid for insurance.

NNADVOKAT [17]

Answer:

$132,400

Explanation:

Calculation for the Insurance expense

Using this formula

Insurance expense= 2017 Ending Balance in prepaid insurance account+ Amount paid for insurance-2018 Ending Balance in prepaid insurance account

Let plug in the formula

Insurance expense=$68,400+$106,000-$42,000

Insurance expense=$132,400

Therefore the Insurance expense recorded 2018 would be $132,400

8 0

4 years ago