1

Use the information to answer the following questions. • Thames Inc.'s most recent dividend was $2.40...

Question

Use the information to answer the following questions. • Thames Inc.'s most recent dividend was $2.40...

Use the information to answer the following questions. • Thames Inc.s most recent dividend was $2.40 per share. The dividend

Use the information to answer the following questions. • Thames Inc.'s most recent dividend was $2.40 per share. The dividend is expected to grow at 3% per year. • The T-bill rate is 5% and the market return rate is 9%. • The company's beta is 1.3. What is the required rate of return for the stock? Select one: a. 14.0% b. 14.2% c. 10.2% d. 16.7% e. 13.0% Continued from previous question. What is the expected price of the stock two years later? Select one: a. $72.14 b. $35.36 c. $36.42 d. $37.83 e. $57.14 Which of the following statements is most correct? Select one: a. Other things equal, the higher the required rate of return, the higher the stock price. b. Other things equal, the lower the market value of debt, the lower the value of equity. c. Other things equal, the higher the dividends, the lower the stock price. d. Other things equal, the investment holding period does not affect the stock price. e. Other things equal, the higher the dividend growth rate, the lower the stock price.

Answers

Anwer 1) Required salt of Return (ke) = Risk full nate of Betax (Market rate of them - chum - Risk free nake) $% + 1-3 *(9%,


Similar Solved Questions

1 answers
PHYS 212 SEC 250 Hi, Wencheng Sign Out urse Home Homework 2 (January 22) Problem 21.104...
PHYS 212 SEC 250 Hi, Wencheng Sign Out urse Home Homework 2 (January 22) Problem 21.104 C6 of 10 Constants ▼ Part A A thin disk annulus, has inner radius Ri and outer radius Ra The disk has a uniform positive surface charge density σ on its surface. (Figure 1) with a circular hole at its...
1 answers
Construct a table comparing the fiollowing intermolecular forces, dipole-dipoleinteractions, hydrogen bonds, and London Forces
construct a table comparing the fiollowing intermolecular forces, dipole-dipoleinteractions, hydrogen bonds, and London Forces...
1 answers
Question 5 3P ABC Company employs a periodic inventory system and sells its inventory to customers...
Question 5 3P ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May: May 1 May 6 May 8 May 13 May 18 May 21 May 28 May 30 Beginning inventory 4,200 units @ $9 cost per unit ...
1 answers
Predict which of the following metals reacts with aqueous cadmium(II) nitrate Al Reaction occurs. No reaction...
Predict which of the following metals reacts with aqueous cadmium(II) nitrate Al Reaction occurs. No reaction occurs. Submit Request Answer Part D Cu No reaction occurs. Reaction occurs. Submit Request Answer...
1 answers
I NEED HELP WITH THIS ASSIGNMENT BUT PLEASE ONLY ANSWER THIS QUESTIONS IF YOU UNDERSTAND! PLEASE...
I NEED HELP WITH THIS ASSIGNMENT BUT PLEASE ONLY ANSWER THIS QUESTIONS IF YOU UNDERSTAND! PLEASE READ THE QUESTIONS AND DIRECTION CAREFULLY BEFORE ANSWERING. (MICROBIOLOGY) THANK YOU! Mrs. Johnson is ready to be wheeled down for surgery. As luck would have it, the surgical team is short staffed and...
1 answers
2. Question Draw the truth table for the following circuit diagram
2. Question Draw the truth table for the following circuit diagram...
1 answers
Question 14 (6 points) Rick wishes to purchase a new car and can afford monthly payments...
Question 14 (6 points) Rick wishes to purchase a new car and can afford monthly payments of up to $275 per month. Finance is available and the terms are that the loan lasts for 6 years, and the annual interest rate is 8%. What is the maximum price for at car that Ryan's budget can afford? Round ...
1 answers
Question 11 12 pts Assume the total revenue from the sale of 'x'lawnmowers is given by...
Question 11 12 pts Assume the total revenue from the sale of 'x'lawnmowers is given by : R(x) = 250000*(0.005x)0.3 Read carefully before answering the following: (a) Find the total revenue if 700 units are sold. Total revenue is $ [Select] (b) Find the marginal revenue if 700 units are sold....
1 answers
Discuss the role of nursing scholarship in the future of the profession in health care
discuss the role of nursing scholarship in the future of the profession in health care...
1 answers
A block of mass m is attached to a top of a spring (spring constant k)....
A block of mass m is attached to a top of a spring (spring constant k). The bottom of the spring is attached to a car of mass M that is free to move on a horizontal track. The spring is rigid enough that it is only able to move up and down, not side to side. See below picture. Illlllll car a. Write ...
1 answers
6. (a) Use the Tables of Fourier transforms, along with the operational theorems, to find the...
6. (a) Use the Tables of Fourier transforms, along with the operational theorems, to find the Fourier transform of -3t e sin (2(t5) H(t5) (b) Hence, find the Fourier transform of 6 e-3t-it sin (2(t +5)) H(t+5). 6. (a) Use the Tables of Fourier transforms, along with the operational theorems, to fin...
1 answers
Question 4: 4. Show that the following polynomials form a basis for P3 1 - x,...
Question 4: 4. Show that the following polynomials form a basis for P3 1 - x, 1-x2 1 +x _X 5. Show that the following matrices form a basis for M22 -8 1 0 3 12 -6 -4 2 _ 13. Find the coordinate vector of v relative to the basis S = {v1, V2, V3} for R3 (a) v (2, -1 3); vi = (1,0, 0), v2 = (2, 2, 0) V...
1 answers
Compare the balance sheets (composition of assets and liabilities) of banks and money market mutual funds(MMMF)....
Compare the balance sheets (composition of assets and liabilities) of banks and money market mutual funds(MMMF). How are they similar and how are they different?...
1 answers
The speed of a moving bullet can be deter- mined by allowing the bullet to pass...
The speed of a moving bullet can be deter- mined by allowing the bullet to pass through two rotating paper disks mounted a distance 65 cm apart on the same axle. From the angular displacement 38.6 of the two bul- let holes in the disks and the rotational speed 1240 rev/min of the disks, we can deter...
1 answers
Characterize those integers n such that the only abelian groups of order n are cyclic.
Characterize those integers n such that the only abelian groups of order n are cyclic....
1 answers
Practice EX 1 physics 205 Spring 2018 Please show all your work to receive full credit...
Practice EX 1 physics 205 Spring 2018 Please show all your work to receive full credit for the correct answers. Particles of charge +75 με 48 με and-8sc are placed in a line. The 48 μC ís 0.35 m from each of the other charged particles. a) Calculate the net force on t...
1 answers
Show how the resolution refutation procedure works by using it to deduce -p from the set Δ. Show how the resolution refutation procedure works by using it to deduce -p from the set Δ.
Show how the resolution refutation procedure works by using it to deduce -p from the set Δ. Show how the resolution refutation procedure works by using it to deduce -p from the set Δ....
1 answers
19. Gina Production Limited uses a standard costing system. The following information perta to 2011: Actual...
19. Gina Production Limited uses a standard costing system. The following information perta to 2011: Actual overhead costs ($16,500 is fixed) $ 40,125 Actual direct labour costs (11,250 hours) $131,625 Standard direct labour for 5,500 units: Standard hours allowed 11,000 hours Labour rate $12.00 The...
1 answers
Cesium, a silvery-white metal used in the manufacture of vacuum tubes, is produced industrially by the...
Cesium, a silvery-white metal used in the manufacture of vacuum tubes, is produced industrially by the reaction of CsCl with CaC2: 2 CsCl(l) + CaC2(s) ----> CaCl2(l) + 2C(s) +  2Cs(g) Compare the free energy produced from this reaction at 25oC and at 1500oC, the temperature at which it ...
1 answers
For every two (2) pyruvate fed into the Citric Acid Cycle, what are the resulting products?...
For every two (2) pyruvate fed into the Citric Acid Cycle, what are the resulting products? Select one: a. 2 FADH2, 6 NADPH, 2 ATP, 2 CO2 b. 1 FADH2, 3 NADH, 1 ATP, 2 CO2 c. 1 FADH2, 1 NADPH, 1 ATP, 2 CO2 d. 2 FADH2, 6 NADH, 2 ATP, 4 CO2...

-- 0.011009--