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riadik2000 [5.3K]
3 years ago
5

Assume the Atlas Corporation is expected to pay a $5 cash dividend next year. Dividends are expected to shrink at a rate of 3% p

er year. The expected return from the market portfolio is 13% and riskless interest rate is 6%. Use the constant-growth dividend discount model (DDM) to determine the intrinsic value of Atlas stock if the company has a beta of .5.
Business
1 answer:
Simora [160]3 years ago
3 0

Answer: $40

Explanation:

First find the required return using CAPM;

Required return = Riskfree rate + beta * (Market return - riskfree rate)

= 6% + 0.5 * (13% - 6%)

= 9.5%

Then use DDM to determine intrinsic value;

= Next dividend / (Required return - growth rate)

= 5 / (9.5% - (-3%))

= $40

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On January 1, Greenview Company adopted the dollar-value LIFO method. The inventory cost on January 1 was $112,000. On December
Mumz [18]

Answer:

125,200

Explanation:

Adjust inventory to base year prices:

= Cost of ending inventory ÷ cost index for the year

= $136400 ÷ 1.1

= $124,000

Current year LIFO layer:

= Adjust inventory to base year prices - Cost of beginning inventory

= $124,000 - $112,000

= $12,000

Inventory to be shown:

= Add the new LIFO layer at end of period prices to prior year LIFO inventory

= (112,000 × 1) + (12,000 × 1.1)

= 112,000 + 13,200

= 125,200

7 0
3 years ago
a county taxes real property at a millage rate of 15. if your customer owns real property in the county and the assessed value i
patriot [66]

$1800

15 x 0.001=0.015

.8 x $150,000=120,000

120,000x.015=$1800

Another way to calculate the number of tax during this example is to multiply your assessed value by 0.0185. Using the millage rate above, a home assessed at $300,000 would have a bill of $5,550. The formula is: Assessed value ($300,000) x millage rate (1.85%, or 0.0185) = land tax ($5,550). To calculate the mileage, or mill rate, a possessor divides the quantity of mills by 1,000.

As an example, say a neighborhood taxing authority encompasses a mill rate of 15 on the assessed value of holding in its jurisdiction. That puts the capital levy rate at 1.5% before any county taxes adjustments or exemptions. To calculate your individual property's effective charge per unit, all you have got to try and do is divide your annual invoice by what you estimate to be the value of your property.

The assessed value estimates the reasonable value for your home. it's based upon prevailing local realty market conditions. Multiply the value of your item or service by the county taxes charge per unit. If you have got a charge per unit as a percentage, divide that number by 100 to induce the charge per unit as a decimal. Then use this number within the multiplication process.

learn more about county taxes: brainly.com/question/25844719

#SPJ4

3 0
2 years ago
An economy grows at an annual rate of 3​%. It will take approximately______years for GDP to double. ​An economy grows at an annu
Andreyy89

Answer:

24 years

7 years

Explanation:

Using the rule of 72, the number of years it would take GDP to double = 72 / annual rate

1. 72 / 3 = 24 years

2. 72 / 10 = 7.2 years

I hope my answer helps you

6 0
3 years ago
Benefits for hiring more workers in shops than others​
Nikolay [14]

Answer:  Improve employee morale and mental health. Bring new ideas to your company. Increase the skill set of your workforce.

hope this helps

plz mark brainleist

4 0
3 years ago
Lamey Headstones increases its annual dividend by 1.5 percent annually. The stock sells for $28.40 a share at a required return
Ray Of Light [21]

Answer:

$3.50

Explanation:

Use dividend discount model to solve this question;

P0 = \frac{D0(1+g)}{r-g}

where P0 = Current price

D0 = most recent dividend

g = dividend growth rate

28.40 = \frac{D0(1.015)}{0.14-0.015} \\ \\ =28.40(0.125) =1.015 D0

Divide both sides by 1.015 to solve for D0;

3.55 / 1.015 = D0

D0 = 3.498

Therefore, the last dividend was $3.50

5 0
3 years ago
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