The following data apply to keefin booni company (million of dollars)

Great Eastern Rectangle (GER) currently has 970,000 shares of stock outstanding that sell for $29.25 per share. Assuming no mark

Nina [5.8K]

Answer:

Please see attachment

Explanation:

Please see attachment

3 0

3 years ago

Traditionally, life insurance companies, pension funds, and brokerage firms are known as ________.

Elodia [21]

Nonbanks.......................................................

3 0

3 years ago

9) Napier Co. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds $1,000,

4vir4ik [10]

Answer:

($1,100,000)

Explanation:

Given that

Loans made to affiliated corporations = $1,400,000

Proceeds from sale of Equipment = $300,000

The computation of net cash provided (used) by investing activities is here below:-

Net cash provided(used) by investing activities = (Loans made to affiliated corporations) - Proceeds from sale of Equipment

= ($1,400,000) - $300,000

= ($1,100,000)

So, for computing the cash provided(used) by investing activities we simply applied the above formula.

7 0

3 years ago

An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent o

s344n2d4d5 [400]

Find the charge of A AND B to go to C and then you have to scream rlly loud okay! and then you have to jump up and down for 3x • 4x = 9p squared okay

3 0

3 years ago

Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the

Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)% = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0

3 years ago