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natali 33 [55]
3 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]3 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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West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bond
MaRussiya [10]

Answer:

7.44 %

Explanation:

The Yield to Maturity (YTM) is the Interest rate that makes the Present Value of Coupons and Principle equal the Market Price or Current Price of the Bond.

The Yield to Maturity can be calculated using a financial calculator as follows :

PV = - $100

N = (15 -2) × 2 = 26

PMT = ($100 ×  7.30%) ÷ 2 = $3.65

FV = $103

P/YR = 2

YTM = ?

Therefore, Inputting the values in the calculator as shown gives the Yield to Maturity is 7.44 %.

7 0
3 years ago
Portal/site/MKTG-301-30-S1-2122/tool/Acdab 156 4646-412-6727.63abf7286271/e/delivery/deliver Assessment
Mekhanik [1.2K]

Answer:

this is the community his work about the system so he cannot ans this question sorry

3 0
2 years ago
Identify whether the following paragraph uses a direct, indirect, or semi-indirect organizational pattern.
Anna007 [38]

Answer:

Correct answer is B that is <u>Indirect Organizational Pattern</u>

6 0
3 years ago
Read 2 more answers
John hamilton borrowed $500,000 from stone creek bank to open a new restaurant called sauce-it-up. John transferred $450,000 of
xxMikexx [17]

The appropriate reflection of the cash transactions between these reporting entities is as follows:

        John Hamilton       Sauce-it-up          Stone Creek Bank

Cash   +$500,000           $450,000             -$500,000

           -$450,000

Balance $50,000            $450,000             -$500,000

<h3>What is a reporting entity?</h3>

A reporting entity is an economic unit that publishes general purpose financial reports to enable users make and evaluate their decisions about the allocation of scarce resources.

Thus, John Hamilton's cash holding increased by $50,000 net.  The cash holding of Sauce-It-Up increased by $450,000 while the cash holding of Stone Creek Bank decreased by $500,000.

Learn more about cash flows of reporting entities at brainly.com/question/24179665

7 0
3 years ago
A company purchased a commercial dishwasher by paying cash of $4,200. The dishwasher's fair value on the date of the purchase wa
kogti [31]

Answer:

$4,760

Explanation:

The value a company will record for the dishwasher will be the amount that was used to purchase the dishwasher plus the associated cost of transporting and installing the dishwasher.

The price of the dishwasher to be used is the actual amount it was bought and not the fair value.

Amount recorded for dishwasher= Price + Transportation + Installation fees

Amount recorded for dishwasher= 4,200 + 330 + 230

Amount recorded for dishwasher= $4,760

Note the fee for illegal parking is not considered because it is not a direct cost related to purchase of the dishwasher

5 0
3 years ago
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