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2 years ago

Will give brainliest! 30 pts

Business

1 answer:

liraira [26]2 years ago

4 0

Answer:

The answer is C and I am sure about that, so choose C

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You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.50 a share at the end

kkurt [141]

Answer:

44.35

Explanation:

The stock will increase the grow rate of the company. We need to solve this.

The grow rate will be determinate using the Gordon dividend grow model

$\frac{divends}{return-growth} = Intrinsic \: Value$

we clear for g

$return - \frac{divends}{stock} = grow$

to find the return we use CAPM

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

risk free 0.032

market rate

premium market = (market rate - risk free) = 0.045

beta(non diversifiable risk) = 0.9

$Ke= 0.032 + 0.9 (0.045)$

Ke 0.07250

this will be the return we use in the formula for grow

g = 0.0725 - 1.5/40 = 0.03500

At this rate our dividends will grow and also our share price

the stock in 3 years will be the current price capitalized with the grow rate

$Stock \: (1+ grow)^{time} = Stock_{3years}$

Stock 40.00

time 3.00

rate 0.035

$40 \: (1+ 0.035)^{3} = Stock_{3years}$

Futue value in 3 years = 44.35

5 0

3 years ago

If there were 70000 pounds of raw materials on hand on January 1, 100000 pounds are desired for inventory at January 31, and 250

vlabodo [156]

Answer:

280,000 pounds

Explanation:

The computation of the purchase of raw material is shown below:

= Ending inventory + production required - beginning inventory

= 100,000 pounds + 250,000 pounds - 70,000 pounds

= 280,000 pounds

We simply added the required production and deducted the beginning inventory to the ending inventory so that the correct pounds can be calculated

6 0

2 years ago

Hollandaise sauce contains mostly

grin007 [14]

Eggs, from all the recipes I see.

4 0

3 years ago

Read 2 more answers

Which business information management career/job role enables you to run an independent consultancy?

gtnhenbr [62]

C. is the answer to this question

7 0

2 years ago

Read 2 more answers

A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from

Lynna [10]

Answer:

What is the current value of the firm to the owners?

total value - debt = $700,000 - $500,000 = $200,000

Show that this in expectation decreases the firm’s value, and explain why, in spite of that, the owners of the company would want to undertake the project.

the expected value of the company after the new project = (50% x 0) + (50% x $1,200,000) = $600,000, so the net value of the company actually decreases by $100,000.

the issue here is that if things go wrong, the owners will lose $200,000, but if things go well, then the owners equity will increase by $500,000 to a total of $700,000. In this case, the expected value of this project for the owners = (50% x -$200,000) + (50% x $700,000) = $250,000.

I am assuming that this company is some type of corporation, LLC or LLP, not a partnership or sole proprietorship. Under current bankruptcy laws, when a cooperation goes bankrupt, the owners are not personally liable for it.

8 0

3 years ago