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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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The following information is available for Marks Company at December 31, 2019:
Arada [10]

Answer:

cost of goods manufactured= = $222,800

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

beginning WIP = 6,000

Direct material used= 10,300 + 90,000 - 6,500= 93,800

Direct labor= 60,000

Manufacturing overhead= 75,000

Ending WIP= (12,000)

cost of goods manufactured= = $222,800

6 0
3 years ago
Why do you think it's better to invest in a variety of stocks, rather than in just one?
xeze [42]
When you invest in more than one stock it gives a better chance of getting more money than you would have, if you only did one.
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3 years ago
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You bought a car for $17,250. You put down $3,000 cash and have to take a loan out to pay for the rest. The car dealership is of
LuckyWell [14K]

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Interest

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3 years ago
Which of the following is not a business entity
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On October 15, 2018, Jon purchased and placed in service a used car. The purchase price was $25,000. This was the only business
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