Answers
I have answered the question below
Please up vote for the same and thanks!!!
Do reach out in the comments for any queries
Answer:
Answer • a) Intrinsic value per common share = 4.12 • b)Intrinsic value per common share = 20 . c)Intrinsic value per common share = 37.15 Explanation: Intrinsic value per common share = D1/(1+r) + D2/(1+r)^2 + D3/(1+r)^3 Intrinsic value per common share = 1.60/(1+8%) + 1.60/(1+8%)^2 + 1.60/(1+8%)^3 Intrinsic value per common share = 4.12 Intrinsic value per common share = D/r Intrinsic value per common share = 1.6/8% Intrinsic value per common share = 20 Intrinsic value per common share = D1/(1+r) + D2/(1+r)^2 + D3/(1+r)^3 +D4/(r-g) *1/(1+r)^3 Intrinsic value per common share = 1.60/(1+8%) + 1.60/(1+8%)^2 + 1.60/(1+8%)^3 + 1.60* (1+4%)/(8%-4%)*1/(1+8%)^3 Intrinsic value per common share = 37.15
.
Similar Solved Questions
1 answer
Estion Completion Status: Calculate the mass of chromium (Cr) in magnesium dichromate (MgCr 207). 44.0% 23.1%...
estion Completion Status: Calculate the mass of chromium (Cr) in magnesium dichromate (MgCr 207). 44.0% 23.1% 43.3% 21.6% QUESTION 26 What is an example of a heterogenous mixture? O Pizza Sweet tea Dr. Pepper...
1 answer
Is Placenta Previa caused by stress and lifting?
Is Placenta Previa caused by stress and lifting?...
1 answer
QUESTION 21 During April 2020, a company had the following transactions: Credit sales of $2,400 (cost...
QUESTION 21 During April 2020, a company had the following transactions: Credit sales of $2,400 (cost of goods sold $1,000). Received $300 from a customer for services that will be provided in May. Purchased inventory for $4,500, paid $2,700 and the rest will be paid in 30 days. Purchased and paid $...
1 answer
O Scheduled payments of $1469 due one year ago and $926 due in four years are...
o Scheduled payments of $1469 due one year ago and $926 due in four years are to be replaced by two equal payments. The first replacement payment is due in two years and the second payment is due in eight years. Determine the size of the two replacement payments if interest is 5.6% compounded quarte...
1 answer
In the past four years has Facebook changed its accounting principles? If they have why would...
In the past four years has Facebook changed its accounting principles? If they have why would they do so?...
1 answer
1) (40) The life in hours of a battery is know ơ-3.5hours. A random sample of25...
1) (40) The life in hours of a battery is know ơ-3.5hours. A random sample of25 batteries hasa mean life off-25.5 hours. n to be approximately normally distributed, with historical standard deviation ' gnificance level or 10% (30) Can the manufacturer claim battery life exceeds 25 hours? Te...
1 answer
Fanning Corporation sells products for $41 each that have variable costs of $11 per unit. Fanning's...
Fanning Corporation sells products for $41 each that have variable costs of $11 per unit. Fanning's annual fixed cost is $711,000. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars...
1 answer
Please use EXCEL to do it, Thanks! Show your answers along with the formula and steps...
Please use EXCEL to do it, Thanks! Show your answers along with the formula and steps you used for each question Problem 2: A US-based firm expects to pay 1,000,000 for importing goods 90 days later. Thc firm's manager want to hedgc against possible currency risk in the future. The risk-free rat...
6 answers
Distance/speed
INFER how distance and speed in the motions of clock parts are used to measure time.Thanks...
1 answer
Answer the following questions: (a) Let ylnl +4], where xini-(:/nulni and olnI-( ) utn Determine the...
Answer the following questions: (a) Let ylnl +4], where xini-(:/nulni and olnI-( ) utn Determine the z-transform Y(z) of yln], and its ROO. (b) An LTI system has a transfer function H(z) given by 3+0.2z- 1-0.7z) (1+1.621) H(z) = Determine the impulse response of this system, assuming ROC E> 1.6. ...
1 answer
E 1: Question 5 (1 point) Which of the following is not a glycoconjugate? syndecans glypicans...
e 1: Question 5 (1 point) Which of the following is not a glycoconjugate? syndecans glypicans af glycosphinoglipid ON-linked glycan trehalose...
1 answer
Calculate the force needed to do 500 j of work while pulling a cart a distance...
calculate the force needed to do 500 j of work while pulling a cart a distance of 3.4 m...
1 answer
Two infinite parallel straight wires. 4in apart, carry 20-A currents flowing in the opposite directions. A)...
Two infinite parallel straight wires. 4in apart, carry 20-A currents flowing in the opposite directions. A) Draw the diagram and show the direction of the magnetic field at a point in the middle between the wires. B) Determine the magnitude of the magnetic field at that point....
1 answer
Due to erratic sales of its sole product-a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product-a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (13,300 units * $30 per unit) Variab...