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olasank [31]
3 years ago
8

You are deciding whether to buy a stock in Company X or Company Y. Both companies need $1,000 capital investment and will earn $

200 in good years( with probability of 0.5) and $60 in bad years. The only difference between the companies is that Company X is planning to raise all of the $1000 needed by issuing equity, while Company Y plans to finance $500 through equity and $500 through bonds on which 10 percent interest must be paid. construct a table showing the expected value and standard deviation of the equity return for each of the companies. Based on this table, which company would you buy stock? Explain your choice
Business
1 answer:
lyudmila [28]3 years ago
4 0

You would buy stock from company y

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All of the following are limitations of the Boston Consulting Group (BCG) Matrix EXCEPT
Arturiano [62]

Answer:

The answer is C:  the matrix requires at least three years worth of data.

Explanation:

The Boston Consultinf Group (BCG) Matrix does not require three years worth of data.

Steps in performing

Step 1. Choose the unit

Step 2. Define the market

Step 3. Calculate relative market share

Step 4. Find out market growth rate

Step 5. Draw the circles on a matrix

5 0
3 years ago
Credenza Industries is expected to pay a dividend of $ 1.25 at the end of the coming year. It is expected to sell for $ 70 at th
Setler [38]

Answer:

$4.64

Explanation:

The total gains for a stock can be broadly classified as both capital gains and dividend gains The capital gain depends on the price of market of the stock prevailing at the time the stock is purchased and the time of the stock sales. For a given firm, dividend gain depends on the dividend policy  

From the question given, let us analyze the following,

the expected capital gain value calculated from the sale of the given stock is   The current stock value is given by:

(price of the stock after a year + the expected dividend) / capital equity cost

($70 + $1.25) / (1+9%)

= $71.25/1.09 = 65.36  

Then,

The capital gain expected from the sale of the stock is given by:

 Expected selling price after a year -the stock current value

 $70 - $65.36

= $4.64

6 0
4 years ago
A beneficial technological change is developed in the production of cranberries. at the same time, scientists discover that cran
sladkih [1.3K]

A beneficial technological change is developed in the production of cranberries. at the same time, scientists discover that cranberries have significant health benefits. this will result in an increase in the equilibrium quantity and an uncertain impact on the equilibrium price of cranberries.

Equilibrium quantity is the number where quantity demanded is equal to quantity supplied. Although there is new advances in the technological production of cranberries, we don't know how the price of the cranberries will be effected, if at all, from the changes. However, since the production of cranberries is going to to be more efficient, the amount supplied will likely rise to match the amount demanded.

5 0
4 years ago
HELP ME
Ratling [72]

The option that is true about the Master Layout dialog box is C. Allows you to add a text placeholder.

The Master Layout dialog box simply refers to the tip slide in the hierarchy of slides that is vital in storing information about the side layouts and theme in a presentation.

The Master Layout dialog box is also vital in storing information about background, color, effects, fonts, etc. It also allows the user to add a text placeholder.

Read related link on:

brainly.com/question/25530317

4 0
3 years ago
A pharmacist wants to establish an optimal inventory policy for a new antiobiotic that requires refrigeration in storage. The ph
Akimi4 [234]

Answer:

EOQ: 80

order per year: 10

Explanation:

We need to solve for the Economic Order Quantity:

Q_{opt} = \sqrt{\frac{2DS}{H}}

Where:

D = annual demand = 800

S= setup cost = ordering cost = 16

H= Holding Cost = 4

Q_{opt} = \sqrt{\frac{2 \times 800 \times 16}{4}}

EOQ = 80

Orders per year = 800 demand/ 80 order size= 10

5 0
4 years ago
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