Answer:
A. Matched Samples
Explanation:
Matched samples is a situation whereby participants are paired, sharing every other characteristics except the one under investigation. The idea behind this is to have more control over unwanted variables. In this case, the study is measuring two production methods and in order to control the unwanted variable and leave only the characteristic or variable under investigation which is the production method, the two method is carried out by the same workers each.
Answer:
$61.29
Explanation:
Calculation for what Storico Co. Share of stock will sell today.
Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.
Therefore the price in Year 3 will be calculated as :
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:
Hence,
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29
Answer:
$31.82
Explanation:
market price $50
expected rate of return /Re) = 14%
Div = $50 x 14% = $7
risk free rate (Rf) = 6%
market premium (Rm - Rf) = 8.5%
beta = ?
14% = 6% + (beta x 8.5%)
beta x 8.5% = 14% - 6% = 8%
beta = 8% / 8.5 = 0.941
if beta doubles to 1.882, then Re will be:
Re = 6% + (1.882 x 8.5%) = 22%
new market price of the stocks = $7 / 22% = $31.818 = $31.82
Answer:
Land, $65,625 and Garage, $39,375
Explanation:
The allocation would be done using the fair market values as basis. Fair market value is more appropriate as a basis instead of using the sizes of the building and the garage as basis.
Total fair market values = $125,000 + $200,000 + $75,000 = $400,000
Total amount paid for all assets = $210,000
Amount allocated to each asset = 
Amount allocated to land = 
= $65,625
Amount allocated to warehouse = 
= $105,000
Amount allocated to garage = 
= $39,375
