price of Pepsi at the end of 5th year = 2.75*1.1284^5*1.0486/(0.16 - 0.0486)
price of Pepsi at the end of 5th year = 47.53
1.5 pts D Question 6 Use the following information to answer the question number 6 &7....
Question text Use the following information to answer Questions 6 and 7: •An analyst gathered the following information regarding Alturius Inc: •Current market price per share = $29.48 •Current year EPS = $3.18 •Current year dividend per share = $1.272 •Required rate of return on equity = 12% Dividends are expected to grow at a rate of 6.5% forever. Question: The company's justified leading P/E ratio is closest to: Select one: a. 7.75 b. 7.27 c. 10.91 Question text Based...
Question 5 5 pts If D = $2.00, g = 6%, and Po = $8, what is the stock's expected dividend yield? 5% 7% 13% 25% 10% Question 6 What is the return of a stock that trades at $35, will pay a $0.75 dividend at the end of the year, and grows at a rate of 8%? 5 pts 9.62%
if you are not given the par value of the bond, then
assume it to be 1000.
Question 2 PepsiCo. Inc. shares trade on NasdaqGS under the ticker symbol PEP. In 2019, analysts forecasted a five-year growth rate of 8% when the current dividend was(Dy=$ 2.3).Suppose PepsiCo.Inc. grows at 8% for five years and then at 5% thereafter. Assuming an 7% discount rate, what is the present value of the PEP's share? The current price is 134.06 (November 18.2019), would...
Use the following information to answer question 5 and 6 Suppose that the current spot exchange rate between Japanese Yen and Euro is ¥130/€ and the one-year forward exchange rate is ¥138.25/€. The one-year interest rate is 2.0 % in yens and 1.25% in euro. 5. According to the Interest Rate Parity condition, what is the 1 year forward exchange rate? a. ¥139.27/€ b. ¥130.96/€ c. ¥129.04/€ d. ¥137.23/€ 6. What is your arbitrage strategy if you can borrow 10...
Need ASAP Just Answers Question 6 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text A registered form bond is defined as a bond that: Select one: a. is a bearer bond. b. is held in street name. c. pays coupon payments directly to the owner of record. d. is listed with the Securities and Exchange Commission (SEC). e. is unsecured. Question 7 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Which one...
pls answer the questions that are fully visible
Question 34 (1 point) A stock is expected to pay a dividend of $0.75 at the end of the next year. The required rate of return is 12.5%, and the expected constant growth rate is g -8.5% forever. What is the stock's intrinsic value? A) $19.22 OB) $18.28 C) $19.70 OD) $18.75 $17.82 Question 35.(1 point) Which one of the following bonds is the least sensitive to changes in market interest rates,...
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Question 1 1.25 pts Which of the following is not a characteristic of a corporation? Limited liability Access to limited amounts of capital Owners are considered stockholders Double taxation Question 2 1.25 pts If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 37,000. True False Question 3 1.25 pts One of the conditions for paying a cash dividend is formal action by the board of directors. True False...
Your answer: Question 11 (CHAPTER 8) Constantine pays a constant $5.5 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. If the required return on this stock is 8.3 percent, what is the current share price? (Do not use "$" in your answer. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places:...
Question 15 6 points Save Answ Use the following information to answer the question below. On January 1, 20x5, Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $17 per share. On February 1, 20x5, Falcon purchased 3,100 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2, 20x5. What amount of gain...
15. Use the below information to answer the following question. Income Statement For the Year Sales $42,700 Cost of goods sold 29,250 Depreciation 3,750 Earnings before interest and taxes $ 9,700 Interest paid 1,360 Taxable income $ 8,340 Taxes 2,840 Net income $ 5,500 Dividends $1,925 Balance Sheet End-of-Year Cash $1,320 Accounts receivable 3,780 Inventory 10,200 Total current assets $15,300 Net fixed assets 33,600 Total assets $48,900 Accounts payable $ 3,650 Long-term debt 18,100 Common stock ($1 par value) 15,000...