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
Allushta [10]
3 years ago
14

The risk-free rate of return is 10.5%, the expected rate of return on the market portfolio is 17%, and the stock of Xyrong Corpo

ration has a beta coefficient of 1.5. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced were $13 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 24% per year on all reinvested earnings forever. a. What is the intrinsic value of a share of Xyrong stock
Business
1 answer:
nadezda [96]3 years ago
5 0

Answer:

$88.24

Explanation:

The computation of the  intrinsic value of a share of Xyrong stock is shown below;

k = risk free rate of retunr+ beta[expected market rate of return - risk free rate of return]

= 10.5% + 1.5(17% - 10.5%)

= 20.25%  

Now

growth rate = b × ROE

= .5 × 24%

= 12%

Now the intrinsic value of the stock is

= (($13 × 50%)  × (1 + 0.12)) ÷ (0.2025 - 0.12)

= $88.24

You might be interested in
James, an administrative manager at Seal Inc., is asked to purchase 100 printers for the firm’s office. He contacts a sales repr
Reptile [31]

Answer:

a. Retailer

Explanation:

Retailer is "a business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business "

Reference: WebFinance. “Read the Full Definition.” BusinessDictionary.com, 2019

8 0
3 years ago
Coolsavings.com is one of the largest on-line distributors of in-store coupons, sales announcements, and mail-in rebates offered
givi [52]

Answer:

a. social

Explanation:

Social trends are the trends and habits of the consumers which they tend to display any product. It includes the data and information about the behavior of the customers and their communication related to the product they purchase. The trends of the consumers help the business to flourish more effectively among the consumers.

8 0
3 years ago
You are planning a special wedding three years from today. You don't know who your spouse will be but you do know that you are s
Novay_Z [31]

Answer:

Total amount collected = $94,400

Explanation:

Given:

1st investment = $25,000

2nd Investment = $35,000

3rd investment = $45,000

Computation of total amount:

Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1+r)^1} +\frac{45,000}{(1+r)^3} \\\\Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1+0.07)^1} +\frac{45,000}{(1+0.07)^3} \\\\Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1.07)^1} +\frac{45,000}{(1.07)^3} \\\\Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1.07)} +\frac{45,000}{(1.2250)} \\\\Total\ amount = 25,000 +32,710.28 +36,734.6939 \\\\Total\ amount = 94,444 \\\\

Total amount collected = $94,400

3 0
3 years ago
Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 71 Manu
Alex

Answer:

Net operating profit= 102,000

Explanation:

Giving the following information:

Selling price per unit $ 71

Manufacturing costs:

Direct materials $ 12

Direct labor $ 6

Variable manufacturing overhead $ 3

Fixed manufacturing overhead per year $ 264,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 4

Fixed selling and administrative expense per year $ 74,000

Year 1

Units in beginning inventory 0

Units produced during the year 11,000

Units sold during the year 8,000

Units in ending inventory 3,000

Year 2

Units in beginning inventory 3,000

Units produced during the year 12,000

Units sold during the year 14,000

Units in ending inventory 1,000

Unitary cost= (12 + 6 + 3) + (264,000/11,000)= $45

Income statement:

Sales= (8,000*$71)= 568,000

COGS= (8,000*45)= 360,000 (-)

Gross profit= 208,000

Variable selling and administrative= (4*8000)= 32,000 (-)

Fixed selling and administrative expense= 74,000 (-)

Net operating profit= 102,000

4 0
3 years ago
As liv golf expands to 14 events in 2023, how much money will be available to competitors in the upcoming season?.
seraphim [82]

There will be $405 million available to contestants in the following season as LIV golf grows to 14 events in 2023.

<h3><u>LIV golf - what is it?</u></h3>

The LIV Golf League, created as an alternative to the current PGA Tour, attempts to apply the principles of arena-style sporting events to the world of golf. The LIV system, which has a fundamentally different business model than the conventional structure, enables greater financial advantage for those engaged beyond just winning tournaments.

Unlike the PGA Tour, LIV golf allows appearance fees, so players vying for the $20–25 million purse are also able to get additional compensation.

Learn more about LIV golf with the help of the given link:

brainly.com/question/29360586

#SPJ4

4 0
1 year ago
Other questions:
  • What is a stock market? What is an example of a stock market?
    7·2 answers
  • A pet shop owner had a parrot with a sign on its cage that said "Parrot repeats everything it hears". Davey bought the parrot an
    12·1 answer
  • The Coffee Express has computed its fixed costs to be $.48for every cup of coffee it sells given annual sales of 145,000 cups. T
    14·1 answer
  • On January 1, 2019, East Lansing, Inc., issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually
    6·1 answer
  • Complete the sentence. As _____ increases, specialization increases as well
    15·2 answers
  • Isocost lines Question 28 options: A) are dependent upon the costs of a firm's inputs. B) are dependent upon the technical effic
    12·1 answer
  • Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the
    6·1 answer
  • You send out 20,000 emails. Of those, 6% are opened. Of those, 9% click on a link to register for something. Of those who clicke
    8·1 answer
  • Fixed costs of production in the short run rev: 06_26_2018 Multiple Choice are a function of the level of variable costs. are lo
    13·1 answer
  • A low credit score can lead too?
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!