Reference no: EM131359847
1. Super Carpeting Inc. just paid a dividend (D0) of $1.68, and its divident is expected to grow at a constant rate of (g) of 3.50% per year. If the required return (r?s) ?on Super's stock is 8.75%, what is the intrinsic value of Super's shares?
a. $19.20 per share
b. $33.12 per share
c. $36.02 per share
d $32.00 per share
2. Which of the following statements is true about the constant growth model?
a. The constant growth model can be used if a stock's expected constant growth rate is less than is required return.
b. The constant growth model can be used if stock's expected constant growth rate is more than its required return.
Use the constant growth model to calculate the appropraite values to complete the following statements about Super Carpeting Inc.
1. If Super Markets stock is in equilibrium, the current expected divident yield on the stock will be a. 3.62% b. 5.07% c. 5.25% d. 5.43% per share.
2. Super's expected stock price one year from today will be a. $34.28 b. $20.57 c. $32.00 d. $33.12 per share
3. If Super's Stock is in equilibrium, the current expected capital gains yield on Super's Stock will be A. 4.20% b. 0.18% c. 9.29% d. 3.50%
|
Different tax implications that stock redemption
: Compare and contrast the different tax implications that a stock redemption has on a stockholder vs. the tax implications that the redemption has on the corporation. If possible, consider finding examples from current events (within the past 5 years)..
|
|
Benefit and compliance issue identified
: Select one benefit and compliance issue identified in Module 3 and share how you feel it is a potentially risky one of which all organizations need to be aware.
|
|
Number of units per order firm will purchase from supplier
: What is the value of the EOQ, (the number of units per order the firm will purchase from its supplier), and the frequency of these orders, under the following conditions?
|
|
Organization in attracting-retaining and engaging employees
: Of the perks you learned about in the readings for the week, which two were surprising to you? Select two from the various lists and share how you think offering the perks assist the organization in attracting, retaining and engaging their employe..
|
|
Statements is true about the constant growth model
: Super Carpeting Inc. just paid a dividend (D0) of $1.68, and its divident is expected to grow at a constant rate of (g) of 3.50% per year. If the required return (r?s) ?on Super's stock is 8.75%, what is the intrinsic value of Super's shares? Which o..
|
|
Identify challenges you will have in managing the budget
: Identify and explain one to two challenges you will have in managing the budget. Provide the agency's Website name, URL, and any other sources used to support the assignment's criteria.
|
|
What are the actual net earnings
: NANOSINE Corp. produces a brand new sports drink which uses a new grinding procedure to transform natural minerals into nano particles which themselves are later on dissolved in water. What are the actual net earnings (EBIT) for the year 01 based o..
|
|
What are the symptoms of the social issue
: What are the "symptoms" of the social issue? What does it "look like" - What are the conflicts that exist regarding this issue? What are the interests, rights, and values of all parties involved with the social issue?
|
|
Field of executive and managerial mentoring
: Mentoring has become a growing change in the business world with employees and managers. In fact, there are a number of websites devoted to the field of executive and managerial mentoring -- but many companies (and universities) are starting mento..
|