In year 2008, Janet's firm is using a two stage dividend discount model (DDM) to find the intrinsic value of Smile White Co. Let the risk free interest rate is 4.5% and expected return of market is 14.5% and beta of the Smile White Co. is 1.15. In 2008, dividend per share is $1.72 for the company. Dividends are expected to grow at a rate of 12% per year for the next three years till 2011. After 2011 dividend growth rate will be at constant rate 9% per year indefinitely.
A. Calculate the required return by the market for Smile White Co. stock.
B. What was the intrinsic value of Smile White Co. stock when the analyst was evaluating the stock (that is in year 2008)?
Problem 2 (continued)
C. If the price of Smile White Co. was $35.00 at the time of this evaluation process in year 2008, was the stock overpriced or underpriced security considering the intrinsic value obtained by the two-stage DDM. What should be the trading strategy based on the evaluation.

Answers

Answer 1

Answer:

janet

Explanation:

its janet i think so


Related Questions

Disposable personal income: a. excludes transfer payments. b. includes personal income taxes. c. is income spent for personal items such as homes and cars. d. excludes personal income taxes

Answers

Answer:

d. excludes personal income taxes

Explanation:

Disposable personal income excludes personal income taxes.

A disposable income can be defined as an amount of money remaining after the deduction of income taxes, and social security fees.

Suppose US$1 = €0.7809 in New York and US$1 = €0.7793 in Paris. How can foreign exchange traders profit from these exchange rates? What actions can they take that may result in the same dollar/euro exchange rate in both New York and Paris? Please limit your response to one or two reasonably-sized paragraphs.

Answers

Answer:

If a Dollar is worth $ 0.7809 Euros in New York, and $ 0.7793 Euros in Paris, the way in which foreign exchange traders could obtain an economic profit through this difference would be by buying Euros in Paris, and selling them again in New York. Thus, they would obtain $ 0.016 of profit for each Euro traded in the market, with which, for example, if $ 1,000,000 of Euros were traded, a total profit of $ 16,000 would be obtained. In turn, trading the same amount in both Paris and New York, traders would not make any profit, equating both exchange rates.

Scott, the chief operating officer of Barcelona Restaurant Group, tells his managers that Barcelona's philosophy is to:

Answers

Answer:

the question is incomplete, so I looked for a similar one:

COO, Scott Lawton, discusses Barcelona’s philosophy on allowing restaurant managers to make their own decisions. They hire and train managers that they believe have the "creativity and brain power" to be successful.

Which type of role is Scott performing?

What type of management approach exists in Barcelona?

Scott is performing an interpersonal role since the question describes his actions regarding restaurant managers and how he allows them to basically operate as independent business units. Scott if the figurehead of Barcelona, but at the same time gives lower level managers a lot of freedom.

This type of management can be described as the humanistic perspective management since employees are empowered.

Two sentences only. i'll give brainliest.

1. How important is elasticity in the analysis of the market?
2. What are tge relying factors of demand elasticity?​

Answers

Answer:

(1)Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. ... If the market price goes up, firms are likely to increase the number of goods they are willing to sell.

(2) Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price

Which of the following should the closing paragraph not do?

Answers

Answer:

3

Explanation:

Answer: B - Describe why are you interested in the company

Explanation: that’s the correct answer !!!

Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals in total for revenue of $460,000. How many of each did you sell?

Answers

Answer:

140 luncheons, 160 dinners

Explanation:

The number of luncheons and dinners that are sold will be 140 and 160, respectively.

What is the solution to the equation?

The allocation of weights to the important variables that produce the calculation's optimum is referred to as a direct consequence.

Your catering business sells luncheons and dinners. Luncheons are $1,000 each, and dinners are $2,000 each. You sold 300 meals in total for a revenue of $460,000.

Let 'x' be the number of Luncheons and 'y' be the number of dinners. Then the equations are given as,

x + y = 300                                                  ...1

1,000x + 2,000y = 460,000                         ...2

From equations 1 and 2, then we have

1,000(300 - y) + 2,000y = 460,000

300,000 - 1,000y + 2,000y = 460,000

1,000y = 160,000

y = 160

Then the value of 'x' is given as,

x + 160 = 300

x = 300 - 160

x = 140

The number of luncheons and dinners that are sold will be 140 and 160, respectively.

More about the solution of the equation link is given below.

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The consumer price index was 200 in 2008 and 190 in 2009. The nominal interest rate during this period was 4.5 percent. What was the real interest rate during this period

Answers

Answer:

the real interest rate is 9.5%

Explanation:

The computation of the real interest rate is shown below:

But before that inflation rate need to be determined

Inflation rate is

= [CPI this year - CPIlast year] ÷ CPI last year

= {(190 - 200) ÷ 200} ×  100

= -0.05 × 100

i = -5%

Now the real interest rate is

real interest rate = nominal interest rate - inflation rate

= 4.5% - (- 5%)

= 9.5%

Hence, the real interest rate is 9.5%

Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current (second) year of ownership?

a. $16,806
b. $14,939
c. $16,163
d. $16,072

Answers

Answer:

b. $14,939

Explanation:

Property placed in service in 1st year:  

                                                Amount $

2nd quarter                              15,000

3rd quarter                                6,000

4th quarter                                40,000

Total furnishing at beginning of 2nd Year $61,000

Half Year depreciation rate in 2nd Year  as per Macrs table under "7 years life" assets, the applicable depreciation in the 2nd year is 24.49%

Thus, amount of depreciation expense is allowable in the current (second) year of ownership = $61,000 * 24.49% = $14938.90

both retail and business banks are important to the US economy because they

Answers

Answer:

Retail businesses are important because they provide millions of jobs in the United States. According to the most recent figures, almost 10 million Americans work in retail, from cashiers to store vendors, to low-level clerks.

Business banks are important because they provide much needed deposit services and credit to businesses and individuals. The modern economy would not work without banking, and this is why the banking sector is highly regulated by the government, and often rescued in times of economic crisis.

Answer: B. Use deposits to provide loans and financing

Explanation:

A.P.E.X

What are accountants most likely involved in as part of their daily activities within an organization?
A.
Preparing profit and loss statements.
B.
Working on distribution-related logistics.
C.
Contacting potential new retailers.
D.
Working on production schedules and shifts.

Answers

Answer: A

Hope this helps!!!

Answer:

What are accountants most likely involved in as part of their daily activities within an organization?

A.

Preparing profit and loss statements.

B.

Working on distribution-related logistics.

C.

Contacting potential new retailers.

D.

Working on production schedules and shifts.

Explanation:

Plato

Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. What was the effect of this fraud on worldcom's income statement?

Answers

Answer:

net income was too high, expenses were too low

Explanation:

From the question, we are told about how Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. In this case the effect of this fraud on worldcom's income statement is that net income was too high, expenses were too low. An income statement which can also be regarded as "profit and loss" account is a financial statement that gives the revenue as well as the expenses of a company at a particular period, so if the Executive capitalize costs that should have been expensed then it equates to the net income been too high while expenses were too low.

When each additional worker hired contributes less than the previous worker hired to total output, we can say there are (is):_______

a. falling average productivity
b. diminishing marginal utility
c. diminishing average returns
d. diminishing marginal returns

Answers

Answer:

d. diminishing marginal returns

Explanation:

The diminishing marginal returns refer to a reduction in the marginal output where the value of the single factor would be rises keeping all other production factors the same or constant

Since in the question it is mentioned that for each extra worker hired that contributes would be lesser than the earlier worker hired

So this represents the diminishing marginal returns

hence, the option d is correct

Which of these was the first government of the United States?

Group of answer choices

Constitution

Declaration of Independence

Articles of Confederation

Mayflower Compact

Answers

Answer:

Declaration of independence

Explanation:

I did that test yesterday lol

Answer:

3. Articles of Confederation

Explanation:

Hope this helps!

"I before E, except after C, or when sounded like A, as in 'neighbor' or 'weigh' is an example of a mnemonic. What memory aid does this mnemonic use?"
A. Emotional connection
B. Visual images
C. Song or rhyme

Answers

Answer:

C. Song or rhyme

Explanation:

The memory aid is the testing technique in which the students are able to recall the things by practising them many times

Here in the given situation it is mentioned that I before E exclude C etc is an example of a mnemonic

So this represents the song or rhyme memory aid so that the mnemonic could be used as the following sequence is necessary in this

hence, the correct option is C.

'11.8. A company stocks an SKU with a weekly demand of 225 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800 units, what is the safety stock, the average inventory, and the order point

Answers

Answer:

a. 261  units

b. 661  units

c. 936 units

Explanation:

Safety stock, average inventory, and the order point can be calculated as follows according to their formulas.

DATA

Weekly Demand = 225 units

Lead time = 3 weeks

Annual Demand  = 225 units  x 52 weeks  = 11,700 units

sigma = 175

Order Quantity Q = 800

Solution

No of orders per year = Annual demand/order quantity

No of orders per year= 11700/800

No of orders per year= 14.625  orders

Service level = (no of orders-1)/no of orders

Service level = (14.625-1)/14.625

Service level = 93.16 %

Saftey factor for 93.16 is 1.49

Saftey stock = 1.49 \sigma

Saftey stock = 1.49 * 175

Saftey stock = 260.75 OR 261  units

Average inventory = Q/2 + saftey stock

Average inventory = 800/2 + 261

Average inventory = 400 + 261

Average inventory = 661

Order point = Demand during the lead time + safety stock

Order point= 225 x 3 + 261

Order point= 936 units

A market economy is not based on _____.


a vote

having no choices

personal choice

the public

Answers

Answer:

Personal choice

Explanation:

A market economy is not based on personal choice. Thus the correct option is C.

What is the Economy?

The economy of any country is determined by the ratio of production and consumption that takes place within a year and evaluates the flow of funds in the market by analyzing the purchasing parity of an individual.

In a free market, the manufacturing of goods and services is controlled by supply and demand principles. It is not centralized and is instead governed by the availability and demand for products and services.

A market economy is said to be a free market or not based on any personal choice as it is determined by the availability of goods and services in the market but customers can influnece the demand for a particular product.

Therefore, option C is appropriate.

learn more about the Economy, here:

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a. Distinguish between physical asset markets and financial asset markets. What’s the difference between spot markets and futures markets?
b. Distinguish between money markets and capital markets. What’s the difference between primary markets and secondary markets?
c. Differentiate between private and public markets. Why are financial markets essential for a healthy economy and economic growth?

Answers

Answer:

a. Physical assets are tangible, they can be touched, seen, used. They generally lose value over time because they depreciate. On the other hand, financial assets are intangible, they only exist because documents say so. Their price can change if interest rates change of if market conditions change.

Spot markets are markets where securities, currencies or commodities are traded immediately. While futures markets represent the trading of securities, currencies or commodities at a future date.

b. Money markets are where investors trades short term securities, while capital markets are where stocks, bonds and other long term securities are traded.

Primary markets exist only when securities are issued for the first time, e.g. an IPO. The vast majority of trading occurs in secondary markets since a security can literally be traded hundreds of times and all of these operations, except for the initial issuance, take place in secondary markets.

c. Public markets are all the trading markets where publicly traded corporations exchange or trade securities, and anyone can buy them, e.g. NYSE, NASDAQ, etc. Private markets only involve trading of privately held securities, e.g. stocks of closely held corporations. Only certain investors can trade with private securities, they are not available to the general public.

Financial markets basically receive savings from private households and businesses, and they transfer them (as investments) to other companies that need these resources to operate and grow. There is a direct relationship between healthy financial markets and economic development.

Jacklyn carves ice sculptures. She carves and sells 10 sculptures. Her average cost of production per sculpture is $50. She sells each sculpture for a price of $150. Jacklyn's total profits are:______

a. $150.
b. $1,000.
c. $500.
d. $1,500.

Answers

Answer:

b. $1,000

Explanation:

To start with, we know that the formulae for total profit is;

= total revenue - total cost.

Total revenue

= price × quantity

= $150 × 10

= $1,500

Total cost

= units sold × average cost of production per sculpture

= 10 × $50

= $500

Therefore,

Total profit = $1,500 - $500

Total profit = $1,000

In an E-Contract, what are the similarities and differences between an Online Offer and an Online Acceptance?

Answers

ANSWER:

the answer is pet your dogo

Explanation:

Company acquired land and buildings for $1,000,000. The land is appraised at $450,000 and the buildings are appraised at $800,000. The debits to the Land and Buildings accounts will be:

Answers

Answer:

Debit Land for $360,000

Debit Buildings for $640,000

Explanation:

The total acquisition cost has to be allocated based on the appraisal value of each of the Land and Buildings.

Therefore, the amount to be debited to the Land and Buildings accounts can be calculated as follows:

Total acquisition cost = $1,000,000

Land appraisal value = $450,000

Buildings appraisal value = $800,000

Total appraisal value = Land appraisal value + Buildings appraisal value = $450,000 + $800,000 = $1,250,000

Amount allocated to Land = (Land appraisal value / Total appraisal value) * Total acquisition cost = ($450,000 / $1,250,000) *  $1,000,000 =  $360,000

Amount allocated to Buildings = (Buildings appraisal value / Total appraisal value) * Total acquisition cost = ($800,000 / $1,250,000) *  $1,000,000 =  $640,000

Therefore, the debits to the Land and Buildings accounts will be the allocated amounts to each as follows:

Debit Land for $360,000

Debit Buildings for $640,000

Royal Decking has five products in its inventory. Information about the December 31, 2021 inventory is below:
Product Cost Sales Price
A $40 $60
B 80 100
C 40 80
D 100 130
E 20 30

A) Selling costs include a sales commission equal to 20% of selling price and shipping costs equal 10% of cost. What per unit value should Royal Decking use for each of its products when applying LCNRV?
B) If Royal has 1,000 units of each product, what should total inventory be on the balance sheet if the company applies LCNRV at the product level?

Answers

Answer:

Royal Decking

A) Per unit value for each of Royal Decking's products, applying LCNRV:

Product   Cost   Sales Price   NRV                          LCNRV

A              $40      $60           $44 ($60 - 12 - 4)      $40

B                80       100           $72 ($100 - 20 - 8)    $72

C                40        80           $60 ($80 - 16 - 4)       $40

D               100      130           $84 ($130 - 26 - 10)   $84

E                 20       30           $22 ($30 - 6 - 2)       $20

B. Total Inventory on the balance sheet is:

$256,000

Explanation:

a) Data and Calculations:

Ending Inventory at December 31, 2021:

Product   Cost   Sales Price   NRV                          LCNRV  Inventory value

A              $40      $60           $44 ($60 - 12 - 4)      $40          $40,000

B                80       100           $72 ($100 - 20 - 8)    $72          $72,000  

C                40        80           $60 ($80 - 16 - 4)       $40          $40,000

D               100      130           $84 ($130 - 26 - 10)   $84           $84,000

E                 20       30           $22 ($30 - 6 - 2)       $20          $20,000

Total inventory value                                           $256       $256,000

= ($256 * 1,000)

Selling costs = 20% of selling price

Shipping costs = 10% of cost

Answer:

Explanation:

To get the NRV we should proceed with this formula.

Selling price ($60)x(20%) = 12.

60-12 = 48

Cost ($40)x(10%) = 4.

40-4 = 36

Then we do this.

48 + 36 = 84

Then we subtract this number from the original cost number.

84 - 40 = 44

So the NRV of A is 44.

I am not a professor but this is the way I can teach and using this method I got my question correctly. Do the rest yourself following this example.

discuss the notion of alienation as elaborated by Marx​

Answers

Answer:

The alienation that Marx refers to comes into being through the relations of production found in capitalist society. ... The commodities that workers produce through their labor is not their own but ultimately belongs to another and is produced for another. Here alienation is manifested in the product that work produces.

A 37-year-old client experienced a perinatal loss 3 days ago. Which client characteristic would be communicated to the health care provider?

Answers

Answer:

Denial of the death

Explanation:

A loss of a Child to a mother is not usually acceptable at first to the mother. A woman at 37 who is advance has slimmer chance of getting pregnant and the woman at 37, having a pregnancy and lossing the baby is not easy to deal with. Parental loss and bereavement is really had for a 37 year old mother who at first may not accept the death of the child but proper care will bring the mother back to full consciousness.

A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity (YTM)?

Answers

Answer:

YTM = 0.070616 or 7.0616% rounded off to 7.06%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

C is the coupon paymentF is the Face value of the bondP is the current value of the bondn is the number of years to maturity

Coupon payment = 1000 * 0.08 = 80

YTM = [ (80 + (1000 - 1110 / 20))  /  (1000 + 1110 / 2)

YTM = 0.070616 or 7.0616% rounded off to 7.06%

A machine operates with the following production cycle:

29 minutes of setup, 90 minutes of production. While in production, the machine produces 4 parts per minute.

Required:
What is the capacity of the machine in parts per minute?

Answers

Answer:

The capacity of the machine in parts per minute is 3 parts per minute

Explanation:

The Total time = 29 + 90

The Total time = 119 minutes

Total production = 4*90

Total production = 360 units

The capacity = 360/119

The capacity = 3.02521

The capacity = 3 parts per minute

Thus, the capacity of the machine in parts per minute is 3 parts per minute

Assume there are two countries (France and the United States) and two goods (Wine and Cheese). In France, labor productivity in Wine is 40 bottles per hour and 30 kilos per hour in Cheese. In the US, labor productivity in Wine is 12 bottles per hour and 12 kilos per hour in Cheese. Given this information, which country has the comparative advantage in Cheese

Answers

Answer:

United States

Explanation:

A comparative advantage results when a country's opportunity cost of producing good X is lower than the opportunity cost of producing good X in another country.

France

Opportunity cost of producing wine = 30/40 = 0.75 kilos of cheese

Opportunity cost of producing cheese = 40/30 = 1.33 bottles of wine

United States

Opportunity cost of producing wine = 12/12 = 1 kilo of cheese

Opportunity cost of producing cheese = 12/12 = 1 bottle of wine

France has a comparative advantage in the production of wine, and the US has a comparative advantage in the production of cheese.

Unemployment is often called a lagging or trailing indicator because unemployment tends to rise some time after the economy begins to slow down, and unemployment begins to fall again after the economy begins to rebound. Unemployment trails GDP because:

A) laws prevent firms from reducing employment during recessions and during expansions people are still collecting unemployment insurance.
B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.
C) when the economy is in a recession, firms do not want to pay unemployment insurance, and during expansions they do not want the added cost of new employees.
D) the labor force increases during recessions and shrinks during expansions.

Answers

Answer:

B) firms reduce hours before laying off when the economy is in recession, and increase hours before hiring when the economy expands.

Explanation:

In the case when the output falls so the workers would not be laid off in a direct manner. In the first time the labor would be decreased so that the demand could be analyzed. The same would be happen in that case also where the growth picked up

Therefore in the given case, the option B is correct

And the other options are wrong

The next dividend payment by ASAP, Inc., will be $2.00 per share. The dividends are anticipated to maintain a 4.00% growth rate, forever. If ASAP stock currently sells for $14.75 per share, what is the required return?

Answers

Answer:

r = 0.175593 or 17.5593% rounded off to 17.56%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

D1 is dividend expected for the next period /year g is the growth rate r is the required rate of return  

Plugging in the values for D1, P0 and g, we can calculate the value of r to be,

14.75 = 2 / (r - 0.04)

14.75 * (r - 0.04)  =  2

14.75r - 0.59  =  2

14.75r = 2 + 0.59

r = 2.59  /  14.75

r = 0.175593 or 17.5593% rounded off to 17.56%

If a company’s net income increased while its net sales remained constant, the company's profit margin would:_____

a. Compare favorably to its competitors.
b. Decrease.
c. Increase.
d. Not be impacted.

Answers

Answer:

c. Increase.

Explanation:

If a company’s net income increased while its net sales remained constant, the company's profit margin would increase.

This is simply because the amount of money that is being generated from the sales of goods and services are increasing.

____ are the goods and materials available for sale at the beginning of a period.


Raw materials

Ending inventory

Cost of goods sold

Beginning inventory

Answers

Answer:

Beginning inventory

Explanation:

Beginning inventory refers to the finished goods that are still in the business premises at the beginning of a fiscal year. They represent the finished products that the business was not able to sell in the past period. Beginning inventory becomes part of the inventory to be sold in the current year.

Other terms that describe beginning inventory are opening inventory, opening stock, and balance brought forward.

Answer:

D- Beginning inventory

Explanation:

Other Questions
Will give brainlist. I need help. Twenty-three years earlier, King Louis XIV had issued a set of rules that defined slavery as legal in the French sugar islands. But when two slaves managed to reach France, he freed themsaying they became free "as soon as they [touched] the soil" of France. The judges sided with Paulineshe was real to them, human, not a piece of property. For Pauline's judges, as for King Louis, slavery far off across the seas was completely different from enslaved individuals in France. Which words best create a positive, hopeful tone? free, real, and human legal, rules, and judges King, individuals, and property islands, soil, and seas Write the type of each chemical reaction Choose a matching analogy for:branch : twigocean: sharktaxi : cartsunami: wavedictionary: definition please help, give explanation please! Convert 88 F to Celsius Round your answer to the nearest tenth. C 1) In the sentence below, match the each word with the kind of connotation it would give.a)strangledb)adornedc)climbed Which of the following values of x will result in an imaginary number for 2x+7 write a letter of invitation for a soccer game which one did she make an error an objects kinetic energy increases as its velocity increases? Determine whether each sequence is an arithmetic sequence. Write yes or no. Explain. 7, 10, 13, 16, ... An elevator is pulled up by a cable with a force of 65,000 N. The upward acceleration of the elevator is 1.8 m/s/s. What is the mass of the elevator? a. 1.8 kg.b. 1700 kg.c. 54880 kg.d. 5600 kg.e. 36111 kg. PLEASE HELP I'M DOING THIS IN CLASS RIGHT NOW Explain exactly why metals are such good conductors according to the video you just watched. 2. Which conducts heat more efficiently- a solid, liquid or gas? Why is that (explain on molecular level)? how would you describe the motion of a transverse wave Pls helpFind the questions? Students are selling raffle tickets for a school fundraiser. They collect $24 for every 10 raffle tickets they sell.a. Suppose is the amount of money the students collect for selling raffle tickets. Write an equation that reflects the relationship between and .b. Label and scale the axes and graph this situation with on the vertical axis and on the horizontal axis. Make sure the scale is large enough to see how much they would raise if they sell 1000 tickets. (LOOK AT THE PHOTO) Can anyone thats really extremely excellent at math, history and english please help me out with my questions. Truly need help. Please only answer if you know how to. ( Just click on my name and go to my questions) answer. help please!!!!!!!!!!!!!!!!!!!! What is one power that the House and the Senate share? A- the power to declare warthe power to ratify treatiesB-the power to initiate revenue billsC- the power to initiate D- the impeachment proceedings