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Arturiano [62]
3 years ago
13

StoreAge Inc. recently paid its annual dividend ($3.00), and reported an ROE of 15%, of which 50% is paid as dividends. The stoc

k has a beta of 1.28. The current risk-free rate is 2.60% and the market risk premium (RM - RF) is 7.00%. Assuming that CAPM holds, what is the intrinsic value of this stock?
a) $75.43
b) $85.76
c) $79.43
d) $76.57
e) $75.75
Business
1 answer:
Igoryamba3 years ago
8 0
The correct answer is c) $79.43
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Answer:

The cash flow to creditors during 2014 was $139000,the amount by which net working capital investment has reduced.

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Lastly,the operating cash flow is $240,000 as calculated below

Explanation:

Net working capital investment denotes the amount of cash the company parted with in 2014 in financing its current obligations.

Stockholders as the owners of the company made more cash available to the company in 2014 by investing more cash resources in it as follows:

Common stock account increased by $10000($164000-$154000)

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Operating cash flow

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Reduction in net working capital $139000

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Answer:

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