Ask question

Ask question

All categories

3 years ago

6

A share of stock sells for $53 today. The beta of the stock is .7 and the expected return on the market is 16 percent. The stock

is expected to pay a dividend of $1.00 in one year. If the risk-free rate is 5.2 percent, what should the share price be in one year?

1 answer:

zimovet [89]3 years ago

5 0

Answerueueyehrgrgr

Explanation:

You might be interested in

The normal time for a repetitive task that produced two work units per cycle is 3.0 min. The plan uses a PFD allowance factor of

VLD [36.1K]

Answer:

A.- 3.45 min to produce two work units

B.- In a 8-hout shift at standard performance 274 work units are produced

Explanation:

The Standart tiem per piece would be:

$StandardTime=NormalTime*(1+PFD)$

Given your numbers it will be:

$3 * (1 + 0.15)= 3.45$

This is the time per cycle to produce 2 work units

Now, in an 8 hours shift there are 480 minutes. Dividing between the standard time of a cycle we get the standard performance

$\frac{480}{3.45} = 137.14$

Rounding, we will be getting 137 cycles

Lastly, because each cycle produce 2 work units we are having a total of 274 Units

3 0

3 years ago

What's the difference between a brand-name and a generic product? A. The company that sells the product B. The side effects of t

katen-ka-za [31]

Answer:

A

Explanation:

The quality should be about the same.

The social responsibility should also be about the same.

There shouldn't be side effects of most products. If you are speaking of medications, there really ought to be the same side effects with the same severity and the same statistical occurrences.

The only difference is the company selling the product.

There have been exceptions to this where different "fillers" were used in the generic brand and the side effects were different and more severe. I've only heard of one case however and I cannot remember what it was. Manufacturers were careful not to let it happen again.

4 0

4 years ago

The traditional method of making product mix decision considersA.producing the products with the highest contribution margins fi

Helga [31]

Answer:

The correct answer is letter "A": producing the products with the highest contribution margins first.

Explanation:

A product mix refers to the different assets a company may posses in its portfolio. Those products or services are usually similar or satisfy almost the same need. They are measured according to their width, length, depth, and consistency. The product mix avoids that the company relies on a single product or service as a source of income. Besides, the product or service with the fastest and highest revenues is the one to be produced first.

8 0

3 years ago

The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the account

vova2212 [387]

Answer:

Wholistic Health Services Co.

Income Statement for the year end February 28, 2019

Service Revenue $270,900

Less: Supplies Expense <u>$3,000 </u>

Gross Income $267,900

Less operating Expenses:

Insurance Expense $4,000

Depreciation Expense $9,000

Miscellaneous Expense $6,000

Utilities Expense $1,760

Rent Expense $4,200

Wages Expense <u>$213,000</u>

<u>$237,960</u>

Net Income <u>$29,940 </u>

Explanation:

Income statement shows the performance of the company in a year. It provides the details of revenue, expenses and profits for the year. All the expenses are deducted from the revenue to determine the net earning of the business.

8 0

3 years ago

Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 s

maria [59]

Answer:

1. Book value at end of year 2 = $13,130

2. Depreciation from year 3 for last 3 years = $3,710 each year, that is $11,130 for three years.

Explanation:

As for the provided details, we have:

Cost of machinery = $23,860

Expected life = 4 years

Salvage value = $2,400

Straight line depreciation = $\frac{23,860 - 2,400}{4} = 5,365$

Under straight line method depreciation remains constant for life of asset.

Book value at end of year 2 = $23,860 - ($5,365 $\times$ 2) = $13,130

Thereafter in the beginning of year 3 the estimate is made to realize that the total remaining life expected is 3 years, with salvage value $2,000

Thus, depreciation from year 3 = $\frac{13,130 - 2,000}{3} = 3,710$

Therefore, depreciation from year 3 to year 5 = $3,710 each year.

Total depreciation of last 3 years = $3,710 $\times$ 3 = $11,130

3 0

3 years ago