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AVprozaik [17]
3 years ago
11

What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a divi

dend of $1.36 per year? The required rate of return is 12.5 percent.
a. $11.24
b. $9.52
c. $10.88
d. $10.64
e. $11.47
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

$10.88

Explanation:

Calculation to determine What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities

Using this formula

Maximum payment for common stock=Dividend/Required rate of return

Let plug in the formula

Maximum payment for common stock=$1.36/.125 Maximum payment for common stock= $10.88

Therefore What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities is $10.88

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which combination of forecasting models is likely to lead to the lowest rmse of the combined forecast?
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Combination of forecasting models is likely to lead to the lowest rmse of the combined forecast is AR and MA models.

Combining forecasts, from time to time called composite forecasts, refers back to the averaging of unbiased forecasts. These forecasts may be primarily based totally on special statistics or special techniques or both. The averaging is performed the usage of a rule that may be replicated, together with to take a easy common of the forecasts.

The AR element includes regressing the variable on its very own lagged (i.e., past) values. The MA element includes modeling the mistake time period as a linear mixture of mistakess phrases going on contemporaneously and at diverse instances withinside the past.

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1 year ago
What would you expect to happen to the mix between internal financing (where companies use their own funds such as retained earn
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Answer:

With the large increase in financial market uncertainty, the mix between internal financing and external financing for new investment projects will tether towards internal sources of funding.

Explanation:

This means that the larger proportion of finance for new investment projects must come from internal sources rather than external sources.  The companies will, therefore, experience much more pressure to generate and retain sufficient profits than it would have experienced otherwise.  While this looks like the best way to go, the possibility of success depends on the chunk of the internally-generated funds that the companies already have.

4 0
3 years ago
Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose
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Answer:

a. The effective price received by sellers is $0.40 per bottle less than it was before the tax.

Explanation:

When government imposes tax on a product, a seller's margin on such a product falls which the seller tries to recover from the buyer by raising the price of the product.

In the given case, $1 is tax payable to government out of which the seller recovers $0.60 from the buyer via increased price. So, the remaining $0.4 tax is being paid by the seller out of his own pocket.

Effective price received refers to net amount received by the seller after deducting expenses and taxes. So, in the given case, the seller now receives $0.4 less per bottle than the receipts before such tax was imposed.

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The correct answer would be option B, Specialty Goods.

Keira is in the market for a type of goods with unique characteristics that appeals to a limited number of consumers and requires significant effort and money to purchase. Keira is most likely in the market for Specialty Goods.

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There are products in the market that have certain characteristics that are appealing to a limited number of people. Such products require not only effort to purchase, but also a significant amount of money is needed.

Specialty products are usually high in price because of their unique characteristics, and that is why they are not easily available in the market as they are needed by a limited number of people.

Specialty products may include the following:

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