Answer:
Intrinsic value of Stock C is 300
Explanation:
given data
expected pay dividend = $3
growth rate of dividends = 9%
stock C require a rate of return = 10%
stock D require a rate of return = 13%
solution
we get here intrinsic value by the DDM method
intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock ) .................1
intrinsic value = 
intrinsic value = 
intrinsic value = 300
so intrinsic value of Stock C is 300
Answer:
The correct answer is letter "C": global new venture.
Explanation:
A global new venture is an investment made by a middle size company abroad that typically has for mission the accomplishment of social well-being. These ventures are characterized by being funded by themselves without the need for a merger or a joint venture.
Answer:
On IRR basis projects 1, 2, 3, and 5 will be selected.
On NPV basis projects 1, 3, 5, and 6 will be selected.
Explanation:
The firm will accept or choose all the project that has a higher or equal internal rate of interest than cost of capital. However, in the given case project 4 has a lower internal rate of interest (12 percent) than the cost of capital. Thus, projects 1, 2, 3, and 5 will be chosen by the firm. While the firm has budget constraints so it will have no money for projects 4 and 6.
The firm will select all the projects with positive NPV when there is no budget constraint. But in case of budget constraint, the firm will select the project that has high NPV. Thus, Project 1, 6, 3, and 5 will be selected and there will be no money left for projects 2 and 4.
Answer:
1) The demand will decrease by 37% as a result of a 10% increase in price:
0.10 x -3.7 = -0.37 a ngevative impact in the maginitude of 37%
2) Revneue will fall
3) The decrease in revenues will be for 30.7%
Explanation:
<u>Revenues Price x Quantity</u>
P (1 + 0.1) Q (1 - 0.37) = (1.1)(0.63) = 0.693
we apply to the price the 10% increase
and we apply to the demand the 37% decrease in quantity
The revenue will fall to 0.693 = 69.3%
100 - 69.3 = 30.7%
