Example of operating cash flow

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The dominant currency used by a subsidiary in its day-to-day operations is known as its( ) currency A.) Operational B.) Transactional C.) Functional D.) Foreign

Which of the following is not an example of an operating cash flow? A.) Management fees and distributed overhead B.) Royalities and license fees C.) Rent and lease payments D.) Dividend paid to parent company

Compute the Macaulay Duration of a ten-year 8.8% bond with a par value of $25,000 with semiannual coupons and a redemption value of $22,000. The bond is priced to yield a nominal annual interest rate of 6%.

Assume a major investment service has just given Oasis Electronics its highest investment? rating, along with a strong buy recommendation. As a? result, you decide to take a look for yourself and to place a value on the? company's stock. ?Here's what you? find: This? year, Oasis paid its stockholders an annual dividend of ?$2.31 a share but because of its high rate of growth in earnings, dividends are expected to grow at a rate of 12 % a year for the next for years and then level out at 9% a year. So far you've learned that the stock has a beta of 1.95, the risk free rate of return is 6%, and the expected return on the market is 11%. Using the CAPM to find the required rate of return, put a value on this stock.

 

A. Using the CAPM the required rate of return on the investment is?

 

B. The value of the company's stock is $. ( Round to the nearest cent).

 

Reference no: EM131990490

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