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Mamont248 [21]
2 years ago
5

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and

$17,300 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 15 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.
Business
1 answer:
Tomtit [17]2 years ago
4 0

Answer:

Total PV= $25,072.57

Explanation:

Giving the following information:

Cash flows:

Cf1= $6,100

Cf2= $11,100

Cf3= $17,300

Discount rate= 15%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 6,100 / 1.15= 5,304.35

PV2= 11,100 / 1.15^2= 8,393.19

PV3= 17,300 / 1.15^3= 11,375.03

Total PV= $25,072.57

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Multiply the amount exceeded of its carrying value by the % shares owned by Abbott.

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2 years ago
Suppose that a portfolio has a beta of 1.15. Over the period of one year, the portfolio had a return of 12.4% with a standard de
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Answer and Explanation:

Given:

Weighted average β = 1.15

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Jensen's α = r - [Rf + β(Rm - Rf)]

Jensen's α = 12.4% - [1.2% + 1.15(10.2% - 1.2%)]

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Jensen's α = 12.4% - 11.55%

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Treynor's index (Ratio) = (r - Rf) / β

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Treynor's index (Ratio) = 11.2% / 1.15

Treynor's index (Ratio) = 9.73913043%

Treynor's index (Ratio) = 9.74% (Approx)

Computation of Sharpe's index :

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Sharpe's index (Ratio) = 0.69 13%

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Kết luận sự thích ứng tâm lý của sinh viên năm nhất
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Answer:

I think I should ask in English language

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2 years ago
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Answer:

The answer is $115.38

Explanation:

Solution

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