Answer:
A)
risk free rate = 8%
market rate = 15%
Xyrong's beta = 1.2
pays 40% of income in dividends
latest EPS = $10
ROE = 18%
k = 8% + (1.2 x 7%) = 16.4%
g = ROE x (1 - 40%) = 10.8%
div1 = [(40% x $10) x (1 + g)] = $4 x 1.108 = $4.432
stock price = $4.432 / (16.4% - 10.8%) = $79.14
B)
div0 = $4
div1 = $4.432
price0 = $103
price1 = $79.14 x (1 + g) = $79.14 x 1.108 = $87.69
holding period return = ($4.43 + $87.69 - $103) / $103] = -0.1056 or -10.56%
Answer:
assuming that the cost of the bond was originally $1,000, its principal will be adjusted to $1,000 x (1 + 8%) = $1,080 at the end of the year.
Explanation:
TIPS stand for Treasury Inflation-Protected Securities, which means that the principal value of the security will be adjusted to inflation. The coupon rate is not adjusted, but since the principal is, if inflation rises, you will receive a higher coupon rate and the maturity value of the security will also increase.
The conversion cost per unit of the inventory comes out to be $2.63.
<h3>What is a conversion cost?</h3>
A conversion cost is computed by adding the production overheads to the direct labor in the production process.
Given values:
Physical units: 155,000
Conversion cost: $413,370
Units in ending inventory: 1900 (3,800 X 50%)
Computation of conversion cost per unit:
Therefore, $2.63 is the conversion cost per unit on the inventory.
Learn more about the conversion cost in the related link:
brainly.com/question/17061981
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Answer:
B. Product development
Explanation:
A product development strategy is used when an existing company, with an existing customer base, tries to grow by introducing new products and/or services that target its customer base. This strategy entails more risk than market penetration but similar risks that market development.
The company can extend its product range by:
Research and Development investment, commonly used by tech companies like Apple who extend their product range constantly.
Buying the rights to produce products and services originally developed by other companies.
-Investing in the R&D of additional products, like when Microsoft developed Xbox One X.
-Getting the rights to produce someone else's product, like when Dinsey bought Marvell CU.
-Acquiring a popular product and rebranding it as its own product, like when google bought Picassa and launched Google Photos.
-Cooperating with other companies to develop products and services (shared ownership), which is very common in tech industries.
Answer and explanation:
<em>Forgetting to pay debts has a detrimental effect on the length and interest payment of a loan</em>. The more a consumer falls behind in the repayment of a debt the longer it will take to pay off the total amount owed. Besides, the interest rate is recalculated by the financial institution implying more interest will be paid.
Therefore, forgetting to pay debts must be avoided. <em>Setting automated payments is a good measure to avoid such circumstances.</em>