Best stock to buy now?
Best stock to buy now?
Homework Answers
The best stock to buy now from my point of view is Amazon.
Reasons:
1. Drastic increase in demands of the items as per the prevailing situation
2. No large impact on AWS services
3. Globally delivery services of Amazon is not impacted to large extent
4. As more people are sitting at home, demand for Amazon Prime has increased.
5. Company has high reserved to fight out any uncertain scenario of recession
This stock is very good option for long term.
Now, assume that Best Buy’s current price is in equilibrium and is a constant growth stock....
Now, assume that Best Buy’s current price is in equilibrium and is a constant growth stock. What is Best Buy’s expected constant growth rate based on your CAPM return? Use price and dividend data from #6. Stock Best Buy Activision Current Price 68.40 55.40 Estimated Price from 1 year now 75.89 57.52 Annual Expected Dividend (D1) 2.00 0.37 D2=2.20 P1=75.89 Growth rate (r)=12.90%
7. Let’s assume Best Buy is a variable growth stock with an expected annual growth rate...
7. Let’s assume Best Buy is a variable growth stock with an
expected annual growth rate in dividends of 10% in year 2, 14% in
years 3 & 4, and 13.5% in year 5 and a constant annual growth
rate of 8% after year 5. What is your valuation of Best Buy’s stock
today using the variable growth dividend discount model? Would you
recommend buying BEST BUY’s stock today and why? Use current price
in #6 to help aid your...
After researching Best Buy common stock, Sally Jackson is convinced the stock is overpriced. She contacts...
After researching Best Buy common stock, Sally Jackson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 150 shares of Best Buy. At the time of the sale, a share of common stock had a value of $53. Three months later, Best Buy is selling for $55 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $82. What is her profit...
Explain what happens to the stock price of Best Buy if payout comes in the form...
Explain what happens to the stock price of Best Buy if payout comes in the form of (a) cash dividend (b) repurchase
You’ve decided to buy a new computer that costs $1,500. But Best Buy will let you...
You’ve decided to buy a new computer that costs $1,500. But Best Buy will let you take the computer home without making paying the full price immediately. Rather, Best Buy will let you pay $500 now, and $500 at the end of each of the next two years. Your bank offers you a savings account that earns 2% annually, and a two-year certificate of deposit (CD) that earns 5% annually. Note that to earn the 5% on the CD, you...
Value a Constant Growth Stock Financial analysts forecast Best Buy Company (BBY) growth for the future...
Value a Constant Growth Stock Financial analysts forecast Best Buy Company (BBY) growth for the future to be 16.00 percent. Their recent dividend was $1.79. What is the value of their stock when the required rate of return is 17.23 percent?
i need 3-4 Apple sold 100 laptops to Best Buy for $75,000. Best Buy paid $40,000...
i
need 3-4
Apple sold 100 laptops to Best Buy for $75,000. Best Buy paid $40,000 cash and the remainder on account. The cost of merchandise sold was $55,000 • State the journal entry to record the sale from Apple's perspective. 4 Ten days later, Best Buy paid Apple the balance owed for the 100 laptops. . State the journal entry from Apple's perspective to record the receipt of the payment from Best Buy ACNT1010: FINANCIAL ACCOUNTING PROF. DELANO
Read the Best Buy story. What additional CRM techniques do you think Best Buy could use...
Read the Best Buy story. What additional CRM techniques do you think Best Buy could use to step it up even more and increase sales in the process? Be specific and creative!
Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs...
Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed. Each computer costs Best Buy $500 and the retailer has a holding cost of 20 percent. The store manager orders in lots of 200 units for each replenishment order. Calculate: 1. The number of times the manager should place an order (order frequency) to meet the annual demand. 2. The...
As the nation’s leading consumer electronics retailer, Best Buy is trying to be the best. But...
As the nation’s leading consumer electronics retailer, Best Buy is trying to be the best. But that’s not been easy in light of the challenges it’s facing in the external environment. Like many other retailers, the economic climate has forced Best Buy to carefully consider its strategic options. Best Buy was founded under the name Sound of Music in 1966 as a home- and car-stereo store by Dic Schulze (he still remains as board chair), who got tired of working...
7. Let’s assume Best Buy is a variable growth stock with an
expected annual growth rate in dividends of 10% in year 2, 14% in
years 3 & 4, and 13.5% in year 5 and a constant annual growth
rate of 8% after year 5. What is your valuation of Best Buy’s stock
today using the variable growth dividend discount model? Would you
recommend buying BEST BUY’s stock today and why? Use current price
in #6 to help aid your...
i
need 3-4
Apple sold 100 laptops to Best Buy for $75,000. Best Buy paid $40,000 cash and the remainder on account. The cost of merchandise sold was $55,000 • State the journal entry to record the sale from Apple's perspective. 4 Ten days later, Best Buy paid Apple the balance owed for the 100 laptops. . State the journal entry from Apple's perspective to record the receipt of the payment from Best Buy ACNT1010: FINANCIAL ACCOUNTING PROF. DELANO
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