Answer:
The stock will trade for 4.30 dollars in the market
Explanation:
The stock will be valued at the discounted value of their future cash flow.
w calculate the cas flow by multiplying by the grow rate given.
Then we discount using the present value of a lump sum:
Maturity $0.5000
time 3.00
rate 0.18
PV 0.30
Then, for the entire of the dividend after year 6th we use the gordon model:
dividends / (rate - grow) and then we discount that
Y# Cashflow Discounted
0 0
1 0
2 0
3 0.5 0.304315436
4 0.825 0.425525822
5 1.36125 0.595014921
6 1.4565375 2.971555503
Total 4.296411682
The answer to this question is that it is an example of
regulatory capture.
<span>Regulatory capture is a situation where in the interest of
the business or firm is being prioritized by the firm in order for them to
advance and succeed. There are two types of regulatory capture; a materialistic
capture and non-materialistic capture.</span>
Question
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:
Year cashflow
0 -100
1-10 15
0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Answer:
NPV= -$32.58
Explanation:
The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 5%,, Rm-15%, β- 1.30
Ke=5% + 1.30× (15-5)= 18%
The NPV = Present value of cash inflow - initial cost
= A×(1-(1+r)^(-10)/r - initial cost
A- 15, r-18%
NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58
NPV = -$32.58
Answer:
a. 57 percent of the U.S. M1 money supply.
Answer:
The question is missing some figures which can be seen from the attached image.
Petty cash is a fund set aside in the office to pay minor day to day expenses incurred.Usually, an amount is made available at the beginning of period called float,from which expenses can be paid and the amount equal to spend is reimbursed at the end of the month.
In order, to make payment even more easier,some businesses take up credit cards from financial institutions,from which expenses can be paid on account.
The balance of $415 means in petty fund,implies that $85 spent needs to be replenished at month end and that the remaining expenses were paid with credit card.
Explanation:
Find in the attached spreadsheet the entries posted in respect of petty cash and credit card expenses in the month.
