You wish to earn a return of 13% on each of two stocks, x and y. Stock x is expected to pay a dividend of $3 in the upcoming year while stock y is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock x.

Answers

Answer 1

Based on the information given, the intrinsic value of stock x will be less than the intrinsic value of stock Y.

Based on the information given above, the intrinsic value of Stock X will be calculated thus:

D1 = Dividend in next year = $3

g = growth rate = 7%

r = = 13%

Therefore, intrinsic value of Stock X will be:

= D1 / (r-g)

= 3 / (13% - 7%)

= 3/6%

= 3 / 0.06

= $50

Therefore, the intrinsic value of stock X is $50.

Intrinsic value of Stock Y will be calculated thus:

D1 = $4

g = 7%

r = 13%

Intrinsic value of Stock Y will be:

= D1 / (r-g)

= 4 / (13% - 7%)

= 4/6%

= 4 / 0.06  

= 66.67

Intrinsic value of Stock Y is $66.67

Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y.

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Related Questions

Which statement best describes a theme of the text? the government is always the highest law of the land. Religious law is above or greater than man's law. The laws of the government are sometimes correct and sometimes incorrect. One must be willing to accept punishment for breaking laws.

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A theme simply means the main idea or the underlying meaning that a writer explores in a novel or literary work.

Your information is incomplete as you didn't provide the text. Therefore, an overview of a theme will be given. A theme is the central topic, subject, or message that's within a narrative.

The theme of a story can be conveyed by using the characters, dialogue, plot, settings, etc that's in the story. For the reader to understand the theme, it's important for one to understand what the story is about.

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Which process is involved in growing crops? irrigation transportation recreation condensation.

Answers

Answer: irrigation

Explanation:

just took test on edg

Irrigation process is involved in growing crops It helps to grow agricultural crops, maintenance of landscape, re-vegetation of disturbed and dry soil and during low rainfall.  

What is irrigation?

Irrigation is the agricultural process of applying controlled amounts of water to land to assist in the production of crops. There are various types of irrigation- sprinkler irrigation, surface irrigation, drip irrigation, and manual irrigation.

It helps in nutritious growth of plants. The process by which water is brought to an area for use in growing crops is called irrigation. Irrigation is the process of artificial application of the desired amounts of water to the growing crops at required intervals. It helps to grow agricultural crops, maintenance of landscape, re-vegetation of disturbed and dry soil and during low rainfall.  

Therefore,Irrigation process is involved in growing crops It helps to grow agricultural crops, maintenance of landscape, re-vegetation of disturbed and dry soil and during low rainfall.  

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In sentence 6 (reproduced below), the writer is considering deleting the underlined text. However, strong evidence indicates that this event did not inspire the poem and that the author was in fact sarah josepha hale, not roulstone. Should the writer keep or delete the underlined text?.

Answers

Based on the information given, the correct option will be C. Keep it, because it previews the way the rest of the passage will support the thesis about Hale's authorship with evidence.

From the question, it was stated that one should show what the author should do with the underlined text.

The underlined text is important as it gives a preview of the passage. It's also used as supporting evidence to the claim of Hale.

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The formula for density is given by p equals startfraction m over v endfraction, where p is density, m is mass and v is volume. If a substance has a mass of 27. 82 grams and a volume of 3. 6 ml, what is the most accurate density of the substance in g/ml? 7. 7 7. 7278 7. 73 0. 1.

Answers

Explanation:

so, we need to do the division :

27.82 g / 3.6 ml = 7.727777778... g/ml

so, 7.7278 is the rounded correct answer.

You have a worksheet in excel that will print as 10 pages.

Answers

Considering the situation described above, to ensure that the header row is printed at the top of each page, the user should start by "going to Page Layout tab."

The other steps to ensure that the header row is printed at the top of all the 10 pages include the following steps:

Click page set up under page set up a group.Go to print titles.Click Rows to repeat at top.Select the cell that contains the text you want to repeat.Click OK.

Hence, in this case, it is concluded that to print the header row is to click on the "Page Layout Tab."

The full question is:

You have a worksheet in excel that will print as 10 pages. how can you ensure that the header row is printed at the top of each page?

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You have been injured in the laboratory (cut, burned, etc.). First you should

Answers

Answer: tell a teacher or go to school nurse or call a parent.

Explanation:

What is the value of a? 5 units units units 7 units.

Answers

what? what is the question

The chemical equation below shows the combustion of methane (ch4). Ch4 + 2o2 right arrow. Co2 + 2h2o the molar mass of oxygen gas (o2) is 32. 00 g/mol. The molar mass of carbon dioxide (co2) is 44. 01 g/mol. What mass of co2, in grams, will form when 8. 94 g o2 completely react?.

Answers

Taking into account the reaction stoichiometry, 6.15 grams of CO₂ are formed when 8.94 grams of O₂ reacts completely.

In first place, the balanced reaction is:

CH₄ + 2 O₂  → CO₂ + 2 H₂O

By reaction stoichiometry (that is, the relationship between the amount of reagents and products in a chemical reaction), the following amounts of moles of each compound participate in the reaction:

CH₄: 1 mole O₂: 2 moles CO₂: 1 mole H₂O: 2 moles

The molar mass of the compounds is:  

CH₄: 16.04 g/mole O₂: 32 g/moleCO₂: 44.01 g/moleH₂O: 18 g/mole

Then, by reaction stoichiometry, the following mass quantities of each compound participate in the reaction:

CH₄: 1 mole× 16.04 g/mole= 16.04 gramsO₂: 2 moles× 32 g/mole= 64 gramsCO₂: 1 mole× 44.01 g/mole= 44.01 gramsH₂O: 2 moles× 18 g/mole= 36 grams

Then the following rule of three can be applied: if by reaction stoichiometry 64 grams of O₂ form 44.01 grams of CO₂, 8.94 grams of O₂ form how much mass of CO₂?

[tex]mass of CO_{2} =\frac{8.94 grams of O_{2} x44.01 grams of CO_{2} }{64 grams of O_{2}}[/tex]

mass of CO₂= 6.15 grams

Finally, 6.15 grams of CO₂ are formed when 8.94 grams of O₂ reacts completely.

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Which of the following statements are true about checked and unchecked exceptions.

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There are different kinds of programs. The true statement about checked and unchecked exceptions is that the compiler ensures that the program is handling checked exceptions.

A checked exception is known to be often caught at compile time. A runtime or unchecked exception is, is simply known to be at a runtime.

A checked exception is often done using re-throwing but unchecked does not need to be handled.

See full question below

Which of the following statements about checked and unchecked exceptions is true?

A. Checked exceptions are handled by the Java runtime.

B. The compiler ensures that the program is handling unchecked exceptions.

C. The compiler ensures that the program is handling checked exceptions.

D. All exceptions that are descendants of RunTime, Exception are checked exceptions.

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Shira wants to do well on her next test so her grade in the class does not fall. This is an example of which type of motivation?.

Answers

It is an example of intrinsic motivation.

Motivation can be described as the factors that drive a person to act in a certain manner. These factors can be material, cognitive, emotional or social. Motivation can lead to either positive or negative outcomes. For example, a person motivated to succeed would spend hours studying while a person whose aim is to make quick profit can be motivated to engage in crime.

Intrinsic motivation is a type of motivation in which the driving force to carry out an activity is due to internal factors. Shira's desire to do well is not externally motivated. It is due to her desire to succeed.

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Answer:

the answer is extrinsic

Explanation:

ED 2022

Jump a little higher than you would for single-bounce jumping. Turn your wrists quickly to let the rope pass under your feet twice before your feet touch the ground. Keep your head straight and your body relaxed for good jumping form.

Answers

Answer:

What???

Explanation:

I don't understand your question

A local supermarket organised two weeks of promotions to boost sales. The average daily sales before the campaign is $10 000, which becomes $11 000 during the promotion (average over 2 weeks). Which analysis below is not useful for evaluating whether the increase in sales is statistically significant?.

Answers

The analysis that is not useful for evaluating whether the increases in sales are statistically significant is to monitor sales for a longer period of time.

Statistical analysis helps to use different methods to properly collect data, and therefore future predictions and solutions. This is important to achieve organizational goals.

From the complete information, analysis that is not useful for evaluating whether the increases in sales are statistically significant is to monitor sales for a longer period of time.

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During photosynthesis, plants capture sunlight energy to make glucose. Then they are able to store that glucose energy. What macromolecule is being referred to?.

Answers

Answer:

starch

Explanation:

Photosynthetic autotrophs capture light energy from the sun and absorb carbon dioxide and water from their environment. Using the light energy, they combine the reactants to produce glucose and oxygen, which is a waste product. They store the glucose, usually as starch, and they release the oxygen into the atmosphere.

At the time of the photosynthesis, the plant captures sunlight and makes glucose which is stored as a form of energy. The molecule here refers to starch.

What is starch?

The starch is soft, white, tasteless, and is insoluble in cold waters such as alcohol or other solvents.

The autotrophs or the plants that make their own food process sunlight that itself a fork of energy and thereby absorbed carbon and water from the environment. The combined reacts to make glucose and oxygen. Thus stored glucose is a starch.

Find out more information about the molecule.

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Select the correct answer from each drop-down menu. Scientists that reducing the consumption of substances that emit harmful gases would reduce pollution. Jonathan was irritated by the noise made by the loud musical procession on the street. The poor farmer was in for a pleasant surprise when he stumbled upon a pot of gold buried in his yard.

Answers

1. Scientists conjectured that reducing the consumption of substances that emit harmful gases would reduce pollution.

2. Jonathan was irritated by the incessant noise made by the loud musical procession on the street.

3. The poor farmer was in for a pleasant surprise when he fortuitously stumbled upon a pot of gold buried in his yard.

In this exercise, you're required to fill in the gap (blank) in the given sentences with the most appropriate word as follows:

1. Scientists conjectured that reducing the consumption of substances that emit harmful gases would reduce pollution.

A conjecture is a noun and it can be defined as an opinion or conclusion that is formed without sufficient evidence, fact or proof. Thus, a conjecture is formed on on the basis of an inconclusive or incomplete information.

2. Jonathan was irritated by the incessant noise made by the loud musical procession on the street.

Incessant is an adjective and it can be defined as an unpleasant thing that happens continuously without interruption. Thus, it is a word that is used to describe something that is ceaseless, unending or happens without stopping.

3. The poor farmer was in for a pleasant surprise when he fortuitously stumbled upon a pot of gold buried in his yard.

Fortuitously is an adverb and it is used it describe a situation or an event that happened by chance or accidentally rather than happening intentionally.

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Answer:

1. Scientists conjectured that reducing the consumption of substances that emit harmful gases would reduce pollution.

2. Jonathan was irritated by the incessant noise made by the loud musical procession on the street.

3. The poor farmer was in for a pleasant surprise when he fortuitously stumbled upon a pot of gold buried in his yard.

Explanation:

Which are points on the graph of y = 1. 5 + ⌈x⌉? select three options.

Answers

Answer:

1.3 ( 8>7)

Explanation:

A recipe says to use 3 cups of flour to make 48 cookies.

Answers

Answer: The constant of proportionality that relates the number of cups with x and the number of cookies with y is 16

The given parameters are:

Cups (x) = 3

Cookies (y) = 48

Represent the number of cups with x and the number of cookies with y.

So, the constant of proportionality (k) is calculated using:

The above equation becomes

Divide 48 by 3

Hence, the constant of proportionality is 16

Explanation:

What feature or elements of the story surprised me.

Answers

Answer:

One question! Which story is it?

Explanation:

In what way is flick sticking his tongue on the flagpole an example of negative reinforcement?.

Answers

Sticking the tongue on the flagpole is an example of negative reinforcement because it produces an unpleasant sensation. In consequence, this behavior will be avoided in the future.

Negative reinforcement refers to a phenomenon that allows teaching a particular behavior.

Negative reinforcement occurs when an uncomfortable and/or unpleasant situation is taken away as a reaction to a particular stimulus.

This process (negative reinforcement) involves discarding the negative situation in order to strengthen a particular behavior.

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The formula for electrical power is. Which is the equivalent equation solved for i?.

Answers

Answer:

p/v=I

Explanation:

Sorry I’m so late

In the photoelectric effect a photon with an energy of 5. 3.

Answers

In the photoelectric effect a photon with an energy of 5.3

Meiosis contributes to the process of reproduction by producing what type of cell?.

Answers

Meiosis contributes to the process of reproduction by producing gamete cells.

Which statements regarding triangle e f g are true? select three options.

Answers

Answer:

67 YOU THE BESTAND ANC 643

Explanation:

A binary number is to be transformed by appending three 0s to the end of the number. For example, 11101 is transformed to 11101000. Which of the following correctly describes the relationship between the transformed number and the original number?.

Answers

Numbers can be converted from one base to another base. a. The transformed number is 8 times the value of the original number.

Given that:

Three 0s are appended to a binary digit to get a new binary digit.

Using the given values, the transformation can be illustrated as follows:

Where:

represents the three appended 0s.

In binary  represents 8 in decimal.

So, the above illustration can be expressed as:

This means that the new or transformed number is 8 times the original number.

The crew of a garbage truck takes 5 hours to empty all the bins in one neighborhood on pickup day. The city assigned a second garbage truck to this neighborhood. During their training, it took the crew from the second truck 8 hours to empty all the bins. A table showing rate in part per hour, time in hours, and part of bins emptied. The first row shows first truck and has, startfraction 1 over 5 endfraction, t, and startfraction 1 over 5 endfraction times t. The second row shows second truck and has, startfraction 1 over 8 endfraction, t, and startfraction 1 over 8 endfraction times t. When the two crews start working together, what part of all the garbage bins will the first garbage truck empty? 0. 6 0. 5 0. 7 0. 4.

Answers

When the two crews start working together, the part of all the garbage bins that the first garbage truck will empty is; A: 0.6

We are told that the first truck empties all bins in 5 hours. Thus;

Rate of first truck per hour = ¹/₅

Second truck empties all bins in 8 hours. Thus;

Rate of second truck per hour = ¹/₈

If both trucks work together, their rate per hour is;

Combined rate per hour = ¹/₅ + ¹/₈

Combined rate per hour = ¹³/₄₀

Thus, number of hours it will take for both of them to do the whole job, we will solve as;

¹³/₄₀t = 1

where t is the time it will take both of them combined to finish the whole job.

Thus;

t = ⁴⁰/₁₃

The part that the first garbage truck will empty when they both work together = ¹/₅t = ¹/₅ * ⁴⁰/₁₃

⇒ Approximately 0.6

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Answer:

0.6

Explanation:

they will be evenly working together at 0.6

The principle that safer investments tend to offer.

Answers

Explanation:

Risk Return relationship

Answer:

Whole test

1. identify the risk and potential losses

2. Debt financing

3. insurance covering losses resulting from medical and hospital expenses as well as income lost form injury or disease.

4. Commercial paper

5. Equity financing

6. Bonds

7. Cash-flow management, financial control, and financial planning

8. Liability

9. insurance

10. Risk- return relationship

What is the one part of a nucleotide that differs among the four different nucleotides in your group?.

Answers

Answer: The part of a nucleotide that differs from the four (4) different nucleotides is the: nitrogenous base.

What is a nucleotide?

A nucleotide can be defined as a subunit of deoxyribonucleic acid (DNA) or ribonucleic acid (RNA) that comprises a nitrogenous base.

Explanation:

What was one way in which african americans helped the revolutionary war effort?.

Answers

Answer:

They convinced Native Americans to join the army.

What is silhak? a. The most sacred of all korean instruments b. A truly korean style that emphasizes the study of things korean c. A traditional korean male hat d. The korean word for picnic.

Answers

Answer: B

Explanation:

please correct me if I am wrong

Answer:

The answer is B

Explanation:

I got it right on my test have a lovely day!

What is wollstonecraft’s purpose in citing rousseau’s theory? to applaud his theory to disprove his theory to agree with his theory to elaborate on his theory.

Answers

Answer: b

Explanation: .. b.. cus it is.. see what i did there

The Wollstonecraft’s purpose in citing Rousseau’s theory is to disprove his theory. The correct option is B.

What is Rousseau’s theory?

Rousseau believed that modern man's enslavement to his own needs was to blame for a wide range of societal ills, including exploitation and dominance over others, as well as low self-esteem and depression.

Rousseau believed that the freedom of all citizens was the most important goal of good government.

History conjecture and moral psychology Rousseau repeatedly asserts that his worldview is centered on a single idea, namely, that humans are good by nature but corrupted by society.

Jean-Jacques Rousseau, born in Geneva in 1712, was a major political thinker of the 18th century. The purpose of Wollstonecraft citing Rousseau's theory is to refute it.

Thus, the correct option is B.

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How does the description of elisa’s daily routine support the author’s claim that the fast food industry seeks out teenage employees? it provides anecdotal evidence of a teenage fast food employee living like an adult. It provides analogical evidence to compare the efficiency of teenagers and adults. It provides statistical evidence of what an average fast food employee experiences. It provides testimonial evidence to describe employee abuse in the fast food industry.

Answers

There are different ways to support a claim. The description of Elisa’s daily routine support the author’s claim that It provides anecdotal evidence of a teenage fast food employee living like an adult.

The excerpt was gotten from the drama, Fast Food Nation. This was a 2006 comedy-drama film. The film was directed by Richard Linklater and its writers were Linklater and Eric Schlosser.  

There are a lot of criticism of fast food industry. There are the claims of negative health effects, children targeted marketing etc. Due to the fact that Teenagers are often used in fast food sales, they tend to grow into it quickly and gradually begins to behave and live like adult.

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Answer:

its A

Explanation:

bc i looked it up

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