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natali 33 [55]
2 years ago
12

Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the

rate of 2% per year. The risk-free rate is 6% and the market risk premium is 8%. The stock of Old Quartz Gold Mining Company has beta of -0.25 (minus 0.25). The intrinsic value of the stock is
Business
1 answer:
LenKa [72]2 years ago
8 0

Answer:

$133.33

Explanation:

Calculation for The intrinsic value of the stock

Intrinsic value of the stock = 6% + [−0.25(14% − 6%)] = .04

Intrinsic value of the stock = 8/[.04 − (−.02)]

Intrinsic value of the stock = 8/.06

Intrinsic value of the stock = $133.33

Therefore the intrinsic value of the stock is $133.33

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On January 1, 2019, Al's Sporting Goods purchased store fixtures at a cost of $180,000. The anticipated service life was 10 year
xz_007 [3.2K]

Answer:

The journal entry is shown below:

Explanation:

The journal entry is as follows for recording the depreciation:

Depreciation expense A/c.........................Dr  $ 14,400

           Accumulated depreciation...............Cr   $ 14,400

Working Note:

Depreciation rate = 100 % / Number of years of life

= 100 % / 10 years

= 10%

This will be multiplied by 2

= 10% × 2

Depreciation rate = 20%

Using the double declining method:

In year 2019

Depreciation expense = Cost of purchasing × Depreciation rate

= $180,000 × 20%

= $36,000

In year 2020

Depreciation expense = ( Cost of purchasing - Depreciation expense of last year) × Depreciation rate

= ($180,000 - $36,000) × 20%

= $144,000 × 20%

= $28,800

Using the Straight Line method:

In the year 2021

Depreciation expense = (Cost of purchasing - Depreciation expense of 2 years) / Number of years of useful life

= ($180,000 - $64,800) /  8

= $115,200 / 8

= $14,400

5 0
3 years ago
Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt
Andreyy89

Answer:

19.64%

Explanation:

The return on equity shall be determined through following mentioned formula:

Return on equity=Net profit/Equity

In the given question

Net profit=9.68%*$807,200=$78,136.96

Equity=Assets-Total Debt

          =$1,105,100-64%($1,105,100)

          =$397,836

Return on Equity=$78,136.96/$397,836

                           =19.64%

3 0
3 years ago
Eric enjoys making pizza. When he makes pizza for his friends, sometimes Eric cares about how the pieces are distributed, and so
sammy [17]

Answer:

equity:

-He cuts the pie into eight equal slices.

-He cuts the pie into many slices so that everyone gets a piece.

Efficiency:

-He lets one person eat the whole pie.

-He makes sure that the whole pie is eaten.

Explanation:

Equity deals with distribution i.e to ensure things are equally distributed

While

Efficiency is trying to make sure things are completely used up i.e act of preventing waste

3 0
3 years ago
Iron Man Foundry produces multiple products, one of which is casting a hose nozzle. The daily demand for these nozzles is 1,000
Alex777 [14]

Answer: 0.48 minutes

Explanation:

Takt time = Net time available / Daily demand

Net time available is number of minutes in a shift so:

= 8 hours * 60 minutes

= 480 minutes

Daily demand = 1,000 units

Takt time = 480 / 1,000

= 0.48 minutes

4 0
2 years ago
Which are costs of a college education? Check all that apply.;;;;// tuition; /federal grants/; books and fees/; room and board /
Charra [1.4K]
-tuition (you need to pay for your education)
-books and fees (materials you need and other miscellaneous fees)
-room and board (you obviously need a place to stay while in college)
-student loan interest (if you opt to get a loan instead of paying for your tuition on the spot)
5 0
3 years ago
Read 2 more answers
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