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jek_recluse [69]
3 years ago
6

You are valuing the stock of Microsoft Corp. You estimate the fair value of the stock of $270. Currently the stock is trading at

$244.37. Your recommendation should be:
Business
1 answer:
Setler [38]3 years ago
8 0

Answer: buy the stock

Explanation:

Fair value refers to the price of an asset that's determined by the buyer and the seller. It's the worth of an asset. The market value is the price an an asset is sold in the marketplace.

By comparing the fair value and the market price, one can know if to invest in a asset or not. Since the fair value is more than the market price, then the should be bought.

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Things that will make an entrepreneur successful
kodGreya [7K]
To start off a solid plan, without a plan you will never succeed especially when it cleans to business and making your own product, trying to make and sell something without a plan will guide that new idea straight to the ground
5 0
2 years ago
Which of the following bonds has the greatest price risk? A 10-year $100 annuity. A 10-year, $1,000 face value, zero coupon bond
kogti [31]

Answer:

A 10-year, $1,000 face value, zero coupon bond.

Explanation:

Zero coupon bonds are sold at a deep discount, and do not pay coupons, only pay the full par value price at maturity.

Zero coupon bonds are riskier than other types of bonds because they are subject to interest tax risk: this means that even if the bond does not pay coupons, the IRS still computes an imputed interest that the bond would have received, and charges an income tax over it.

If the bondholder of a zero coupon sells the bond before maturity, the risk of having paid more in both income taxes on imputed intersest, plus the initial price of the bond itself, than the gain from the sale, is very high.

5 0
3 years ago
The Silverside Company is considering investing in two alternative​ projects: Project 1 Project 2 Investment ​$400,000 ​$280,000
shepuryov [24]

Answer:

The Silverside Company

Project 1's Payback Period

= Initial Investment/Annual cash flows

= $400,000 / $90,000

= 4.44 years.

Explanation:

Project 1:

Initial Investment = $400,000

Useful life = 5 years

Annual cash inflows for useful life = $90,000

The Silverside Company's payback period calculates the time or number of years that it would take the company to recover from its initial investment in Project 1.  This is the simple payback period calculation.  There is also the discounted payback period calculation.  This method discounts the annual cash inflows to their present values before the calculation is carried out.  This second method gives a present value perspective on the issue.

4 0
3 years ago
Ea games is a video game development company. The creation of their video games require ideation, design and development before
borishaifa [10]

Answer:

The answer is the testing process is a significant part in game development. as it gives an overview of the query and correction that needs to be done in order to make a game more effective.


Explanation:

The testing process is a crucial part of game development. as it gives an overview of the problem and modification that needs to be done in order to make a game more effective enjoyable error-free and productive. the problem arises when the test department finds a critical bug and cannot proceed further until it has been fixed. this change could potentially impact the entire game and the testing team has to completely redo all their testing which results in an extension in the release date and adds to the production cost. the data system is a systematic and organized way that will definitely help ea sports to organize and analyze the data in a better way. it will make the communication process more effective and will prove to be a boon for the company. reducing the cost and saving time.

3 0
2 years ago
Contracts are really only used for business; most people do not have contracts for their personal finances. true or false
guapka [62]

WRONG. the answer is FALSE! I just took the quiz.

7 0
3 years ago
Read 2 more answers
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