You are an analyst working for a mutual fund. Your job is to select stocks for the fund. You want to select only one of the following tech stocks to add into your current portfolio: Appscale, Bitwise, and Carbivore. All three stocks are similar along many metrics. They are all in the technology space and have been growing very fast over the past few years. However, it is hard to get all the information for those three stocks, and so far you have collected only the following relevant information to help you make the decision: Appscale is a tech firm that focuses on developing and integrating mobile apps. Reading through analyst reports and based on your own judgement, you think the cost of equity for Appscale is 12%. Appscale estimated earnings per share next year are $10. It pays all its earnings as dividends. Bitwise is a fintech company that is involved in Bitcoin and blockchain technology. Currently, Bitwise stock is trading at $100/share, with estimated earnings next year of $10/share. You read from their management disclosure and financial report that Bitwise retains 40% of their earnings for investments. Its reinvestment rate of return is 10%. Carbivore is a biotech firm that promotes and advocates sustainable food choices. The one period holding return is 10%.

What is the current price of Appscale?

a. $120/share
b. $83/share
c. Not enough information

Answers

Answer 1

Answer:

a. $120/share

Explanation:

The market value of a company is total value of a business. It is calculated by multiplying number of outstanding share with market value per share. This is also known as Market Capitalization. Cost of equity is the rate of return required by the equity holders of the company. The company decides its cost of equity based on the risk level of its business. The market price for Appscale will be:

Ke 12%

EPS $10

Market value is $120/share

(12% * $10 per share)


Related Questions

1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is market control by a few large firms. Which of the following are other characteristics of this market structure? Check all that apply. Either similar or identical products Difficult entry Neither mutual interdependence nor mutual dependence No entry Mutual interdependence

Answers

Answer:

----Either similar or identical products --------Difficult entry

----Mutual interdependence

Explanation: An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Here, Each firm is mutually interdependent as any action from any firms influences the actions of the rest of the competing firms , therefore decisions are made using strategic planning and consideration as competing firms are ready to counter react to any change in any new market action.

Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.Also venturing into the market requires high capital, technology or additional government licences. Examples of Oligopolistic firms are oil and gas firms, airlines, mass media etc

Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.

Also venturing into the market requires high capital, technology, or additional government licenses.  

The correct options are:

Either similar or identical productsDifficult entry Mutual interdependence

An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Each firm is mutually interdependent as any action from any firm influences the actions of the rest of the competing firms.

Therefore decisions are made using strategic planning and consideration as competing firms are ready to counter-react to any change in any new market action.

To know more about the Characteristics of oligopoly, refer to the link below:

https://brainly.com/question/13023410

Identify each person below as structurally, frictionally, or cyclically unemployed.


a. Jake recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
b. Rosa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
c. Latasha just graduated from college and is looking for a full-time position with an investment banking firm.

Answers

Answer and Explanation:

Structurally unemployed: It refers to mismatch between both the available jobs and the unemployed skills

Frictionally unemployed: This condition occurs when the workers or labors are not employed and looking for the work

Cyclically unemployed: It arise when where the aggregate demand for goods and services can not encourage full employment in an economy. This takes place during times of sluggish economic growth or times of economic contraction

Based on the explanation, the classification is as follows

a. Structurally unemployed

b. Cyclic unemployed

c. Frictionally unemployed

An investor buys a 10-year, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return?

Answers

Answer:

The answer is 5.71%

Explanation:

Solution

Given that

Coupon rate = 7%

Bond = $1050

Sale of the bond = $1040

n = 10 years, n = 1 year

Now we find the investor's rate of return

Thus

Coupon payment = 7%* 1000

=70

1050 = 70/(1+r) + $1,040/(1+r)

r= 5.71%

Therefore the rate of return of the investor is 5.71%

or

Rate of return = (P1-P0+ Interest ) /P0

= (1040 -1050 + 70 )/1050

= .0571 or 5.71%

Gullett Corporation had $32,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Answers

Answer:

Dr Raw materials $81, 000

Cr Accounts payable $81,000

Explanation:

Preparation of the journal entry to record the purchase of raw materials for Gullett Corporation

Since we were told that the Corporation already had the amount of $32,000 of raw materials on hand in which they later purchased an additional amount of $81,000 of the raw materials this means we are going to record the Journal entry by Debiting Raw materials with the amount of $81, 000 which is the additional amount of the raw materials purchased and to Credit Accounts payable with the same amount of $81,000.

Dr Raw materials $81, 000

Cr Accounts payable $81,000

(To record purchase of raw materials)

A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent. The fixed cost of a replenishment order (including transportation cost) is $100. The store currently places a replenishment order for Q.

1. What is the annual holding and ordering cost?

2. On average, how long does a jacket spend in inventory?

3. If the retail store wants to minimize ordering and holding cost, what order size do you recommend?

4. How much would the optimal order reduce holding and ordering cost relative to the current policy?

Answers

Answer:

(1) The annual holding cost is =$6250, The ordering costs is = 500 units

(2) The total cost is = $7450

(3)224 unit

(4) $1,864.30

Explanation:

Solution

Given that:

The annual demand = 520 units * 12

= 6,240 units

The cost per order = $100 per order

The Carrying Cost = 0.25% * $100

= 25 per unit per year

Thus

(1) The Ordering quantity = 500 units every month

The annual holding cost =0.5*quantity ordered*holding cost

The  Annual Holding cost = 0.5*500*25

Annual Holding cost =$6250

(2) The  ordering (Annual)cost = number of orders *cost per order

Annual ordering cost =(500*12/500)*100

Annual ordering cost =$1200

Total cost = 6250+1200=7450

(3)Thus

EOQ=(2*D*S/h)^0.5

EOQ=(2*6240*100/25^)0.5

EOQ=223.43

=224 unit

(4)The ordering cost =(6240/224)*100=2785.70

Holding cost=0.5*224*25

=2800

Total cost= 2785.70+2800

Total cost=5585.70

Total savings = 7450 - 5585.70

= $1,864.30

What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? Interest is paid annually.

Answers

Answer:

Coupon rate is 8%

Explanation:

We can ascertain the coupon rate by first of all determine the amount of coupon with pmt excel function below:

=pmt(rate,nper,-pv,fv)

rate is yield to maturity of 6%

nper is the number of coupons before maturity i.e 3 annual coupons in three years

pv is the current market price of $1,053.46

fv is the par value of $1,000

=pmt(6%,3,-1053.46,1000)=80

Coupon rate=pmt/face value=80/1000=8%

Specter Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 820 2 1,130 3 1,390 4 1,525 a. If the discount rate is 10 percent, what is the present value of these cash flows

Answers

Answer:

$3,765.26

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash Flow in year 1 = $ 820

Cash Flow in year 2 = 1,130

Cash Flow in year 3 = 1,390

Cash Flow in year 4 = 1,525

I = 10

PV = $3,765.26

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

"In your opinion, how has social media affected customer service in a broad sense? Provide evidence that supports your opinion."

Answers

Explanation:

Social media directly impacted the relationship between consumer and company.

First, you need to consider how the internet and social media are widely used by thousands of people around the world as a way to connect with others and exchange information.

Realizing this phenomenon, companies decided to use social media as a way to interact with their customers and attract more audiences. Social media works as a space where the construction of the relationship takes place more instantly and a little less formally, which allows for more in-depth interaction and the creation of a valuable relationship between company and customer.

Through the social media it is possible that the time of an answer for example is drastically reduced, which alters the consumer perception in a positive way.

It is also possible that companies use social media as a tool to improve relationship marketing, which is the creation of value for the customer through content, photos and posts, which generate engagement, approximation, loyalty and connection with consumers.

Other Questions
A toy falls from a window 80 feet above the ground. How long does it take the toy to hit the ground? You want to install a 1 1 yd wide walk around a circular swimming pool. The diameter of the pool is 23 yd. What is the area of the walk? Use 3.14 for pi . The sides of an equilateral triangle measure 16 inches. The midpoints of the sides of the triangle are joined to form another equilateral triangle with sides that are half the length of the outer triangle. This process is continued until three triangles are inscribed in the first triangle. The sum of the perimeters of all four triangles is A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent. The fixed cost of a replenishment order (including transportation cost) is $100. The store currently places a replenishment order for Q. 1. What is the annual holding and ordering cost? 2. On average, how long does a jacket spend in inventory? 3. If the retail store wants to minimize ordering and holding cost, what order size do you recommend? 4. How much would the optimal order reduce holding and ordering cost relative to the current policy? The mean and standard deviation of a random sample of n measurements are equal to 34.5 and 3.4, respectively.A. Find a 95 % confidence interval for if n=49.B. Find a 95% confidence interval for if n=196.C. Find the widths of the confidence intervals found in parts a and b.D. What is the effect on the width of a confidence interval of quadrupling the sample size while holding the confidence coefficient fixed?1. Quadrupling the sample size while holding the confidence coefficient fixed decreases the width of the confidence interval by a factor of 4.2. Quadrupling the sample size while holding the confidence coefficient fixed increases the width of the confidence interval by a factor of 2.3. Quadrupling the sample size while holding the confidence coefficient fixed increases the width of the on confidence interval by a factor of 4.4. Quadrupling the sample size while holding the confidence coefficient fixed does not affect the width of the confidence interval.5. Quadrupling the sample size while holding the confidence coefficient fixed decreases the width of the confidence interval by a factor of 2. Gullett Corporation had $32,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to record the purchase of raw materials would include a: La camarera ________ la carta de bebidas en la mesa y pregunta a Federico y a m. Primero, yo quiero caf. Segundo, ________ Federico; l quiere agua. cuida; me toca a deposita; le toca a bebe; me levanta recoge; le levanta I think it is B but im not sure Explain the concept of "charge" and how it relates to electricity? HELP!After a rotation, A(-3, 4) maps to A'(4, 3), B(4, -5) maps to B'(-5, -4), and C(1,6) maps to C'(6, -1). Which ruledescribes the rotation?R0, 90R0, 180Ro, 270RO, 360 Researchers cross a corn plant that is pure-breeding for the dominant traits colored aleurone (C1), full kernel (Sh), and waxy endosperm (Wx) to a pure-breeding plant wiht the reccessive trains colorless aleurone (c1), shrunken kernal (sh), and starchy (wx). The resulting F1 plants were crossed to pure-breeding colorless, shrunken, starchy plants. Counting the kernals from about 30 eats of corn yields the following data:Kernel Phenotype NumberColored, shrunken, starchy 116Colored, full, starchy 601Colored, full, waxy 2538 Colored, shrunken, waxy 4Colorless, shrunken, starchy 2708 Colorless, full, starchy 2Colorless, full, waxy 113 Colorless, shrunken, waxy 626 6708A) Why are these data consistent with genetic linkage among the three genes? B) Perform a chi-square test to determine if these data show significant deviation from the expected phenotype distribution. C) What is the order of these genes in corn? D) calculate the recombination fraction between the gene pairs. E) what is the interference value for this data set? What is the value for y? Enter your answer in the box. y = An isosceles triangle A B C with horizontal base A B and vertex C is below the base. Side A C and C B are labeled with single tick mark. All the three angles are labeled. Base angles C A B is labeled as 34 degrees and angle C B A is labeled as left parenthesis x minus 5 right parenthesis degrees. The angle A C B is labeled as 4y degrees. Briefly describe two ways in which the Hardy-Weinberg equation can be used to get information about a population. Please help I will mark brainliest for correct answers! simplifica: 49/90, se puede???? What does President Lincoln express in the line in bold?A.AngerB.CertaintyC.DoubtD.Misery In the last stanza rain in summer, what is being compared with the leopards tawny hide? how to find the angel in trigonometry when all the lengths of the right angled triangle already given. Charge of uniform surface density (0.20 nC/m2) is distributed over the entire xy plane. Determine the magnitude of the electric field at any point having z The volume of a gas in a container varies inversely with the pressure on the gas. A container of helium has a volume of 370in3 under a pressure of 15psi (pounds per square inch). Write the equation that relates the volume, V, to the pressure, P. What would be the volume of this gas if the pressure was increased to 25psi? Which excerpt contains a strict internal rhyme scheme? A. Rippling in twelve-winded circles (from "Ceremony After a Fire Raid" by Dylan Thomas) B. But the raven, sitting lonely on the placid bust, spoke only (from "The Raven" by Edgar Allen Poe) C. The eyes beside had wrung them dry, (from "Dying" by Emily Dickinson) D. Hope is the thing with feathers (from "Hope" by Emily Dickinson) E. The round green eyes and the long wavering bodies (from "Lines Written in Dejection" by William Butler Yeats)