The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select- its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select- the stock's intrinsic value) and avoid stocks that are overvalued. The value of a stock today can be calculated as the present value of -Select- stream of dividends:

Answers

Answer 1

Answer:

marginal investor

equal

less

infinite

Explanation:

the value of a stock depends on the sum of the value of the dividend yield and capital gains yield

dividend yield = dividend / price of the stock

capital gains yield is a change in the value of the stock as a result of appreciation in the value of the stock.

The intrinsic value of a stock can be calculated using various dividend models. some of them include :

The Gordon constant growth dividend model The two stage dividend growth model The H-model The three stage dividend growth model

The market is in equilibrium when price equal intrinsic value

a stock is undervalued when the price of the stock is less than its intrinsic value

A stock is overvalued when the price of the stock is greater than its intrinsic value.

An investor would want to purchase a stock that is undervalued so that they can take advantage of increase in the value of the stock

Th dividend used to calculate the intrinsic value is infinite. This is because dividends are paid infinitely as long as the investor holds the stock and the company exists


Related Questions

What was the interest rate if your balance on an investment of $357 at the end of six years is $1,128.36?

Answers

Answer: 36%

Explanation:

The formula for simple interest is:

= (Principal × Rate × Time) / 100

Here, the principal = $357

Time = 6 years

Interest = $1,128.36 - $357 = $771.36

To calculate the rate goes thus:

Interest = PRT / 100

771.36 = (357 × R × 6) / 100

771.36 = 2142R / 100

Cross multiply

771.36 × 100 = 2142R

77136 = 2142R

R = 77136 / 2142

R = 36.01

Rate = 36%

Therefore, the interest rate is 36%

A cowboy hat manufacturer was interested in knowing how to price his or her work based on data rather than "gut feelings." He or she found that pricing concepts involve a language of special terms. Fill in the blanks with the word or phrase from the drop-down list that is among these special terms and would best complete each sentence. Words may be used more than once.

_____ refers to the portion of sales revenue left over after paying the product costs of cowboy hats. Target ____ are often based on norms in the hat industry. Cost-based pricing for cowboy hats uses the_____ plus a target _____ to calculate the sales price. Other term for margin is _______.
- margin
- markup percentages
- product costs/ markup precentage

Answers

Answer:

the last one

Explanation:

Suppose the government of Mexico runs a budget deficit. This will result​ in: A. an increase in interest rates in Mexico and an increase in the value of the peso relative to other currencies. B. a decrease in interest rates in Mexico and an increase in the value of the peso relative to other currencies. C. a decrease in interest rates in Mexico and a decrease in the value of the peso relative to other currencies. D. an increase in interest rates in Mexico and a decrease in the value of the peso relative to other currencies.

Answers

Answer:

I belive Is A Please Tell me if I'm wrong or right

Suppose, Joe owns a custom decal shop. The Merry Maids maid service company orders seven $100 decals for its company vehicles. Then the maid service breaches the contract after the goods were produced, but before they were delivered. As a result, Joe has a bunch of custom decals for the maid service that he cannot resell. However, by a stroke of luck, a maid service from a nearby city that is also named Merry Maids desires labels for their car. They pay $50 per label for the seven labels that Joe already made. If Joe were to sue for damages, how much could he recover

Answers

Answer:

$350

Explanation:

Calculation to determine how much could he recover

Using this formula

Recovering Amount=Amount paid per Label*Numbers of Label already made

Let plug in the formula

Recovering Amount=$50*7

Recovering Amount=$350

Therefore If he were to sue for damages the amount he could recover is $350

Which action demonstrates good workplace etiquette?

A.
switching your cell phone off before you enter a meeting
B.
keeping your cell phone on low volume before you enter a meeting
C.
setting a pleasant ring tone on your cell phone before you enter a meeting
D.
setting a standard ringtone on your cell phone before you enter a meeting
E.
excusing yourself to attend a call while a meeting is in progress

Answers

Answer:

A is the answer of the question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of the month, but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?
A. $16,000
B. $22,500
C. $37,000
D. $26,500
E. $32,000

Answers

Answer:

Total cost A38= $37,000

Explanation:

Giving the following formula:

The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred.

Direct labor= 4,000 + 6,500= $10,500

Direct material= 2,500 + 3,000= $5,500

First, we need to apply overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 10,500*2= $21,000

Now, the total cost:

Total cost A38= 10,500 + 5,500 + 21,000

Total cost A38= $37,000

SECTION B
ANSWER ALL ITEMS IN THIS SECTION.
1. Fill in the blanks by classifying the following activities as primary, secondary or
tertiary production.
(Total 5 marks)
A
= Banking
В.
= Forestry
С.
Canning of fish
D.
= Doctor
Е.
Working as a lumberjack

Answers

ANSWERS:

A-tertiary
B-primary
C-secondary
D-tertiary
E-primary

PLEASE MARK ME BRAINLIEST

The slogan of Nature's Source Products is "Loving the Planet." This is more than just an advertising message. The company hires people who not only have job-related skills but also a commitment to sustainability and enjoyment of nature. The employees regularly have opportunities to sign up for service projects such as river cleanups and recycling drives. Employees are enthusiastic about developing and marketing products made with all-natural ingredients sustainably sourced. The HR department uses its communication tools to remind employees about how everyone contributes to realizing this eco-friendly vision for the company. Together, these efforts at Nature's Source Products create
A. brand alignment
B. a leaming culture
C. critical systemic thinking
D. knowledge sharing

Answers

Answer: A. Brand alignment

Explanation:

Brand alignment simply means when a company ensures that the brand's promise is being uphold through its marketing assets and the way the company interacts with the customers.

Brand alignment is a way of making sure that the brand's promise are delivered and met. Since the slogan of Nature's Source Products is "Loving the Planet." and the company employs people who are committed to sustainability and enjoyment of nature, it implies that the company is using brand alignment.

What is constructive criticism? Give an example

Answers

Answer:

Constructive Criticism for Performance Reviews

Below is an example of constructive criticism for an employee that does not seem as motivated on projects as before. You were always proactive in the projects you take on but I've noticed that you have taken more of a backseat in the last few projects.

Explanation:

All of the following are true statements EXCEPT:
A. One way to provide all socioeconomic groups access to a facility is to situate the facility in a central location on a major public transportation route.
B. It is acceptable to house a disaster-related program in a non-accessible building if no accessible buildings are readily available.
C. The content of all public meetings must be available to individuals with hearing impairments.
D. Providing information in alternative formats helps ensure that persons with disabilities can access the information.

Answers

i’m guessing the answer is D

Bill Tallyrand, as county assessor, entered into a fraudulent
scheme at the urging of his son Tom, the county collector.
Together they bilked the citizens of Lawrence County out of
millions of dollars. After the scheme was discovered, Bill
refused to testify against his son by claiming the Fifth
Amendment's prohibition against self-incrimination. The
county prosecutor then granted Bill immunity, but he still
refused to testify. What punishment can the court inflict
upon Bill to compel his testimony?

Answers

A witness who refuses to testify after being given immunity can be held in contempt of court and subjected to fines and jail time.

Legal immunity, also known as immunity from prosecution, is a legal position in which an individual or institution is not held accountable for a violation of the law in order to further social goals that outweigh the value of imposing culpability in such instances.

What does Immunity mean for a witness?

If a witness refuses to testify after being granted immunity, he or she may be placed in contempt of court and face fines and jail time. Even after being granted use and derivative use immunity, the witness is not always out of the woods: the prosecution can continue to pursue the witness.

However, after the prosecution has given immunity, the prosecution is restricted in how it can use that testimony in the future. If the prosecution pursues an indictment against an immunized witness, the prosecutor and law enforcement must demonstrate that the case is wholly based on evidence that is independent of the witness's immunized testimony.

For more information about Immunity refer to the link:

https://brainly.com/question/1142703

example of opportunity cost atlist 3 example​

Answers

Answer:

Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.

At the ice cream parlor, you have to choose between rocky road and strawberry. When you choose the rocky road, the opportunity cost is the enjoyment of the strawberry.

A player attends baseball training to be a better player instead of taking a vacation. The opportunity cost was the vacation.

I hope i helped! xoxo


Mention the subject matter of marine insurance.​

Answers

Answer:

The ship is a very important subject matter of marine insurance. The word Hull refers to the body of the ship or vessel. The ship exposes a number of risks like a cyclone, collision, and arrest by foreign naval power. The insurance which protects the shipowner against the loss of the ship is known as hull insurance

Hiring managers spend at least an hour reviewing an applicants résumé.

A. True
B. False

Answers

Answer: False?

Explanation:

Hiring managers spend often 30 sec to 2 minutes reviewing an applicants resume.

ts
Question 1
1 pts
From the list below, choose the greatest advantage internships offer while in
high school.
A. You will earn college credit during high school
B. Opportunity to "try out" a career
C. Obtain your GED
D. Military academies are more likely to accept you

Answers

Answer:

answer is d because in military social studies is most and of you are good in social studies and graduated from high school it becomes easy to get admission in military academies.

Answer:

B. Option to "try out" a career

Explanation:

just took the test and got it right

A vegetable farmer wishes to switch to a combination of trees and vegetables (agroforestry) on several hectares of her land to reduce erosion and to diversify what she grows. She needs to assess whether her land can produce as much income by growing two crops instead of one. The farmer estimates that the new tree crop would cover 40 percent of her fields, with the vegetable crop covering the other 60 percent. Which equation should she use to calculate how much total income she would get from using the new two-crop plan

Answers

The best equation to show her the income from her plan is (( Tree income per hectare) x total hectares x 0.4) + (( Vegetable income per hectare) x total hectares x 0.6)

Finding the income from trees

Trees will cover 40% of the field. The income would be

= Amount earned from trees per hectare x Number of hectares used by trees

Number of hectares used by trees = 40% x Total number of hectares

Income from trees will be:

= Amount earned from trees per hectare x 40% x Total number of hectares

= Tree income per hectare x 0.4 x Total hectares

Income from vegetables

Applying the same method as above:

= Amount earned from vegetables per hectare x 60% x Total number of hectares

= Vegetable income per hectare x 0.4 x Total hectares

Total income

= Sum of both

= (( Tree income per hectare) x total hectares x 0.4) + (( Vegetable income per hectare) x total hectares x 0.6)

Find out more on benefits of diversification at https://brainly.com/question/14081320.

Analice el concepto de frontera de posibilidades de producción y responda que implica producir en mayor cantidad uno de los dos bienes

Answers

Answer:

La frontera de posibilidades de producción es la cantidad máxima de producción que se puede obtener con los recursos disponibles.  Producir en mayor cantidad uno de los dos bienes implica disminuir la producción total, al reemplazar la producción de ambos bienes por abocarse a la producción de uno sólo.

Explanation:

La Frontera de Posibilidades de Producción (FPP) es una representación gráfica y es literal un límite, por eso es que se denomina frontera. Cuando hay que elegir entre dos bienes, producir una mayor cantidad de uno implicará reducir la cantidad producida del otro. Si se quieren producir ambos habrá que considerar las distintas combinación y con eso las variables obtenidas en cuánto a los recursos utilizadas en cada caso.

A firm that is committed to keeping manufacturing facilities in only the home country (and not developing multiple production sites in a variety of countries) can Multiple Choice not mitigate the effects of exchange rate changes. lessen the effect of exchange rate changes by pursuing a strategy of diversifying the markets in which the firm's products are sold. lessen the effect of exchange rate changes by pursuing a strategy of selling commodity products without product differentiation. pursue a strategy of increasing its products price elasticity of demand.

Answers

Answer:

lessen the effect of exchange rate changes by sourcing from where input costs are low

Explanation:

What is NOT a reason a new product might fail?
O Too little marketing support
O Unexpected consumer reaction
O Poor positioning
O Appropriate channels selected

Answers

Appropriate channels selected is NOT a reason why a new product might fail.

When advertisers consider running ads in American Life magazine, they have the option of buying geographic and demographic editions as well as the national edition. For instance, they can choose from editions targeted at professional and managers, homeowners, working women, and people aged 50 and older. In addition, they are offered editions for 8 geographical regions and for the top 20 metropolitan areas. American Life also offers multiple - page discounts for advertisers buying four or more consecutive pages in any one edition, as well as other volume discounts. Question: A media planner working for a high-end clothing retailer looks at its sales figures and discovers that a vast majority of its sales generated are from large cities. She decides to buy space in American Life editions that reach only the top 10 metropolitan markets. This media strategy is referred to as:
a. Geo-targeting
b. Flighting
c. Pulsing
d. Share of voice
e. Narrow casting

Answers

Explanation:

sorry but I didn't understand your question. I am extremely sorry

COLORADO HAS A STATE INCOME TAX OF 4.63% ON ALL INCOME AND A SALES TAX OF 2.9%. ARE THESE TAXES PROPORTIONAL, PROGRESSIVE, OR REGRESSIVE

Answers

Answer:

Progressive because It is a tax in which the tax rate increases as the income increases.

When is a lower annual interest rate better than a low annual fee?

Answers

Explanation:

Lower annual interest in real terms is a relief to customers because it can go across a monthly payment like in a product purchase with a credit card. A low annual fee is just one payment that can be a certain membership of which happens only on an annual basis.

Identify the problem by analyzing the given scenario. An IT software company is losing market share because it fails to launch new products in a timely manner. Decisions are centralized at the top, and employees have little or no voice. One way to solve this problem is to use teams to eliminate ____ in the company.

Answers

Answer: bureaucracy

Explanation:

Bureaucracy could be described as having a company or an industry being controlled by some set of individuals yet have little or no result to show. These control in most cases diminishes the flow of effective operation in the firm.

The I. T organization is having a bureaucracy issue, where decisions are only made at the top with no contribution from those carrying out the job. The input of those carrying out the job at the bottom could be very effective to change things in the organization.

Answer:

"bureaucratic barriers"

Explanation:

i got it right on plato

Although only certain leases are currently accounted for as a sale or purchase, considering all leases to be sales or purchases can be justified theoretically. The principal reason that supports this idea is that______________.
A. all leases are generally for the economic life of the property, and the residual value of the property
B. at the end of the lease is minimal at the end of the lease, the property usually can be purchased by the lessee
C. a lease reflects the purchase or sale of a quantifiable right to the use of property
D. during the life of the lease, the lessee can effectively treat the property as if it were owned

Answers

Answer:

A lease reflects the purchase or sale of a quantifiable right to the use of property

Explanation:

Sale

This is commonly known as the transfer of title, deeds from seller to buyer for a price

Purchase

This is simply defined as the buying of title, deeds from seller for a fixed price.

Lease

This is the transfer of right to possession and use in return for some consideration.

It is als refered to as contractual agreement. This agreement is between a lessor and a Lessee. The lessor gives or conveys the right to use real or personal property or asset while the lessee is the one agrees to pay periodic rents over a time period.

The means of Lease payments include fixed payment, variable payments based on an index, bargain purchase option and guaranteed residual value.

What is most likely to cause a rise in expenditure in an economy?

a. A rise in consumer confidence

b. A rise in income tax

c. A reduction in wealth

d. A more uneven distribution of income.

Answers

Answer:

B

Explanation:

because b i think gimme vbucks

When Maurice Kendall of the Royal Statistical Society first examined share price patterns, in 1953, he found that
A. stocks whose prices had increased consistently for one week tended to have a net decrease the following week
B. certain patterns tended to repeat within business cycles
C. there were definite patterns technical analysts could have used to make a profit from trading on the stock market.
D. stocks whose prices had increased consistently for one week tended to have a net increase the following week
E. there were no predictable patterns in stock prices.

Answers

ur answer is b i’m guessing

Extras come from the net income minus
A. Taxes
B. Expenses
C. Savings
D. Budget

Answers

I think it’s B hope that helped

Answer:

Its B

Explanation:

I got it correct

The financial aid packages for three students are shown. Which student will have to repay the least amount?​

Answers

Answer:

Tyler will have to repay the least amount

Explanation:

Tyler (loan = $1400) has the least loan amount  as compared to both Kierra (loan = $2500) and Jaden (loan = $3700). Tyler extract his fees from the financial aid package components.

The smaller the loan, the smaller is the repayment amount. Hence, Tyler will have to repay the least amount

Answer:

Tyler

Explanation:

The reason why is because Kierra has to pay back $ 2,500 if you look at her loan section.  You do not repay Scholarships, grants, and work study.  Next Tyler only has $1,400 in his loan section that is why his is the least.  Lastly Jaden has $3,700 in his loan section so he has to pay back $3,700

$7,700 net monthly income - What amount would you use for needs for the month? *

Answers

1672. 84839 jsusklzudlekfikgld

does 1 plus 1 = 65 yes or no

Answers

Answer:

No 1 + 1 = 2

Explanation:

Lol

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