3) The impact of the Internet on media appears to be decreasing the total demand for media.…
4.) If the dividends increase, then the price of the stock is going to go up.…
In glycolysis, glucose (sugar) is "burned" in the presence of oxygen to produce energy in the form of ATP. Carbon dioxide and water are they by-products.…
When a firm invests directly in new facilities to produce and/or market a product in a foreign country,…
Linda Kerber described the predicaments of the Federalists, a political party whose members feared that popular democracy might spin out of control. Although they both fostered economic development, the Federalists were aware that an urban grassroots would result. The believers of the Federalist Party believed that Jefferson’s approach to politics was naïve. The early stages of industrialization and urban growth were providing the ingredients of a working class; already existing was an unpredictable class of permanently poor who might well be available for mob action. The God or the religious beliefs of the Federalists often appeared to behave like a fourth branch of Government. They believed that religious obligation would reinforce moral obligation and would make popular government orderly and stable. On the other hand the Jeffersonian supporters felt they should break down the barrier of habitual morality (religion), with the interruption of education, habit and superstitions they were confident they would have a more positive vice.…
- Medicare is Australia's universal health insurance scheme. Medicare gives all Australians, permanent residents and people from countries access to health care that is subsidised by the government. It aims to improve the access to health care for all Australians and to provide access to adequate healthcare at little or no cost to all Australians in the need of treatment, regardless of age or income.…
1. How did the Revolution affect the following aspects of American life: democracy, commerce, religion and the separation of church and state, slavery, women’s rights?…
Which of the following is not an example of one of the main instruments in trade policy used by…
Use Lewis theory to determine the chemical formula for the compound formed between Rb and S.…
Solutions to Valuation Questions 1. Assume you expect a company’s net income to remain stable at $1,100 for all future years, and you expect all earnings to be distributed to stockholders at the end of each year, so that common equity also remains stable for all future years (assumes clean surplus). Also, assume the company’s β = 1.5, the market risk premium is 4% and the 20-30 year yield on risk free treasury bonds is 5%. Finally, assume the company has 1,000 shares of common stock outstanding. a. Use the CAPM to estimate the company’s equity cost of capital. • re = RF + β * (RM – RF) = 0.05 + 1.5 * 0.04 = 11% b. Compute the expected net distributions to stockholders for each future year. • D = NI – ΔCE = $1,100 – 0 = $1,100 c. Use the dividend discount (i.e., free cash flow to equity investors) valuation model to estimate the company’s current stock price. • Pe = D / re = $1,100 / 0.11 = $10,000 • price per share = $10,000 / 1,000 = $10 2. Same facts as in (1) above, but assume you expect the company’s income to be $1,100 in the coming year and to grow at the rate of 5% in every subsequent year into infinity. Also, assume that the company’s common equity as of the end of the most recent fiscal year is $8,000, and the investment needed to support the growth in net income causes common equity to increase by 5% each year. Assume the company is an all-equity firm; i.e., all financing comes from stockholders and none comes for debtholders. In this case, the company’s balance sheet has net operating assets (NOA) of $8,000, common equity (CE) of $8,000, and zero net financial obligations (NFO). a. Compute D1 for the coming year and the rate of growth in Dt for every year thereafter. • D1 = NI1 – ΔCE1 = 1,100 – 0.05 * 8,000 = 700 • D2 = NI2 – ΔCE2 = (1,100 * 1.05) – 0.05 * (1.05 * 8,000) = 1.05 * (1,100 – 0.05 * 8,000) = 735 = 700 * (1 + 0.05) • D3 = NI3 – ΔCE3 = (1,100 * 1.052) – 0.05 * (1.052 * 8,000) = 771.75 = 735 * (1 + 1.05) • so D is 700 in year 1 and grows at 5%…
The following annotated chapter outline will help you review the key points covered in this chapter.…
A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company’s dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the risk- free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock’s current price?…
What has happen recently that makes it easier for B2B marketers to perform market segmentation?…
Exam 1. 1. All continuous random variables are normally distributed. False. 2. The actual weight of hamburger patties is an example of a continuous random variable. True 3. The college of business administration at acorn University offers a major in finance. Based on historical records, 30% of the college of business students major in Finance. A random sample of 20 students is selected. What is the probability that exactly 3 of the selected students are majoring in Finance? .0716 4. Assume that we have selected a random sample of 25 units from a normally distributed large population. If u = 15, and c2=4, what is the probability that we will obtain a sample mean of less than 14? .0062 5. The normal approximation of the binomial distribution is appropriate when. Np> 5 and n(1-p) >5 6. A newly married couple plans to have four children. Suppose that boys and girls are equal likely each time a child is born. What is the probability the couple will have no more than 2 boys? 62.5% 7. A random variable is said to be discrete if: Its outcome are countable 8. The mean life of pair of shoes is 40 months with a standard deviation of 8 months. If the life of the shoes is normally distributed, how many pairs of shoes out of one million will need replacement before 36 months? 308,500 9. If the sampled population has a mean of 48 and standard deviation 16, then the mean and the standard deviation for the sampling distribution x for n=16 48 and 4 10. The MPG (MILES PER GALLON) for a mid-size car is normally distributed with a mean of 32 and a standard deviation of .8. what is the probability that the MPG for a selected mid-size car would be less that 33.2? 93.32% 11. If the random variable X has a mean of u and a standard deviation g, then (X-u)/g) has a mean and standard deviation respectively. 0 and 1 12. For a binomial probability experiment, with n=150 and p=.2, it is appropriate to use the normal approximation to the binomial distribution. TRUE 13. A computer system uses 4…
Innovations such as defense wall and architecture is one of the Byzantine legacy. Their religions: Orthodox Christians and Roman Catholic were deprived during the Byzantine time, which continue to spread until the present day. The culture, they kept Greek’s literature from dying out and made copies of them. Since the city of Constantinople developed as one of the largest city in Europe, so therefore, some of the Byzantine’s legacies has contributed to the development of Europe.…