1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
M1 is the
Elodia [21]

Answer:

B. money market funds

Explanation:

The most limited definition of money, M1, consists just of cash and various bank accounts that allow check writing. Money in circulation includes cash, traveler's checks, demand deposits, and other types of checkable deposits.

7 0
2 years ago
Which of the following statements is true about work hour
Fittoniya [83]
I think A if not than B I’m sorry if I’m incorrect
6 0
2 years ago
Are real people answering these questions? Do u get paid?
Yuki888 [10]

Answer:

Yes real people answer these questions. No, at least I don't get paid. (although that would be awesome!!!)

4 0
3 years ago
CAN SOMEONE PLEASE HELP ME WITH MY ECONOMICS CLASS I BEEN STRUGGLING ON IT PLEASEEE HELP ME !!!!
vitfil [10]

Answer:

can u tell me what it is and I'll help

8 0
3 years ago
The key to success for big and small businesses alike is
garri49 [273]

Answer:

acountability, kill bureaucracy before it starts - more functions, fewer departments, more “teams,” fewer committees, open lines of communication, the customer is everybody’s responsibility, never stop “re-inventing” the business.

Explanation:

8 0
3 years ago
Other questions:
  • C. assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed or
    11·1 answer
  • How is the economy likely to be affected if a democracy becomes an oligarchy ​?
    14·1 answer
  • Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its outp
    9·1 answer
  • Which of the following choices best completes the following statement? Explain. An investor with a higher degree of risk aversio
    10·1 answer
  • Suppose a firm incurred explicit costs of $900 and implicit costs of $200 during a day. If that day the firm sold 8 units at $30
    9·1 answer
  • embroidered dog apparel over the Internet. Her annual revenue is​ $128,000 per​ year, the explicit costs of her business are​ $4
    15·1 answer
  • What tool is used to easily clean metal scales, old paints and rust​
    13·1 answer
  • You work for REV and check your work email on your mobile phone. You have decided to resign
    14·1 answer
  • The percentages in the table represent the performance change from the previous month. Consider the impact of each metric on cus
    8·1 answer
  • What is sole proprietorship?? <br><br><br>hlo everyone​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!