Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The earnings dividends, and stock price of Shelby Inc. are expected to grow Using the discounted cash flow approach, what is the cost of equity? The earnings dividends, and stock price of Shelby Inc. are expected to grow a. Using the discounted cash flow approach, what is the cost of equity? If the firm’s beta is 1.6, the risk-free rate is 9%, and the expected return on the market is 13%, then what would be the firms cost of equity based on the (CAPM) approach. K3= p/d + g =$2.14/$23 = 7% =9.3% + 7% =16.3% b. If the firm’s beta is 1.6, the risk-free rate is 9%, and the expected return on the market is 13%, then what would be the firms cost of equity based on the (CAPM) approach? Expected return = RF+β×Rp RF is risk free return Rp is risk premium = 9%+1.6× (13%-9%) = 15.4% c. If the firms bonds earn a return of 12%, what will it be using the bond-yield-plus-risk-premium approach? (Hint: Use the midpoint of the risk premium rate.) K=bond rate + risk premium =12% + 4% = 16% This makes the Risk Premium 16% D. On the basis of the results of parts a through c, what would you estimate Shelby’s cost of equity to be?
Draw a diagram of the long-run equilibrium in a monopolistically competitive market. How is price related to average total cost? How is price related to marginal cost?
Show the effect of Business Cycle on Inflation. Show the effect of Business Cycle on unemployment. Show the relationship between employment, inflation and business cycle
Four political candidates are deciding whether or not to enter a race for an elected office where the decision depends on who else is throwing his or her hat into the ring. Candidate D prefers not to enter if either candidate B and/or C are expected ..
what way the U.S trucking industry exemplified the capture theory hypothesis of government regulation prior to the capture theory hypothesis of government regulation prior to the passage of the Motor Carrier Act of 1980
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force..
Ken and Daniel always eat miso soup and sushi in exact proportions – one miso per twosushi. They throw away any extra soup or sushi as it would not give them any pleasure. Draw the Edgeworth box for Ken and Daniel. Please put Ken at the origin and Da..
Suppose that the annual growth in real income in Japan is expected to be between 2 and 3 percent and that income elasticity of demand for housing in Tokyo is estimated to be between 0.8 and 1.0 for rental units and between 0.7 and 1.5 for owner-occup..
Before the war, Iraq had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Iraq’s PPF before and after the war, assuming that the only..
For a good or service to be considered a ‘public good’, it must meet at least one criteria. Think of one good or service (other than education, healthcare, police/fire) that you believe is or should be classified as a public good and explain how it m..
Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
Discuss the international parity conditions. Explain the essence of purchasing parity power. What would happen to purchasing parity power exchange rate if the law of one price were true? What is the difference between the purchasing parity power and ..
Are there any good reasons to have 12 Federal Reserve banks scattered around the country rather than having everything run by the Board of Governors in Washington, D.C.? What are the costs and benefits? Suppose that you thought that someday you would..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd