8. Seinfeld Inc. just paid a dividend of $1.25 and projects supernormal growth of 25% for the next two years. Growth is the expected to slow down to a normal 5%. Similar stocks are earning investors a return of 10%. a. What is the intrinsic value of this stock? (5 points) b. If the stock is selling for $45 on the NYSE, should you buy it? Why or why not?
Answers
The intrinsic value of Seinfeld Inc. stock can be calculated by applying the dividend discount model (DDM) considering the projected supernormal growth and the expected return of similar stocks. If the intrinsic value is higher than the current market price of $45, it may be advisable to buy the stock.
a) To calculate the intrinsic value of Seinfeld Inc. stock, we can use the dividend discount model (DDM). The DDM calculates the present value of expected future dividends.
The supernormal growth rate for the next two years is 25%, followed by a normal growth rate of 5%. The most recent dividend paid is $1.25.
To determine the intrinsic value, we calculate the present value of dividends for each period:
Year 1: Dividend = $1.25 * (1 + 0.25) = $1.5625Year 2: Dividend = $1.5625 * (1 + 0.25) = $1.953125Year 3 and onwards: Dividend = $1.953125 * (1 + 0.05) = $2.05078125The intrinsic value can be calculated as the present value of the expected future dividends using the required return of 10% for similar stocks:
Intrinsic Value = \((Dividend1 / (1 + r)^1) + (Dividend2 / (1 + r)^2) + (Dividend3 / (1 + r)^3) + ...\)
where r is the required return.
In this case, using a financial calculator or spreadsheet, we can sum up the present value of the dividends to find the intrinsic value.
b) If the stock is selling for $45 on the NYSE, we compare the intrinsic value with the market price to determine if it is a good investment.
If the intrinsic value is higher than the market price, it suggests that the stock may be undervalued and could be a good buy. However, if the market price is higher than the intrinsic value, it may indicate that the stock is overvalued and not a favorable investment.Therefore, if the calculated intrinsic value is higher than the current market price of $45, it may be advisable to buy the stock since it suggests potential undervaluation.However, if the intrinsic value is lower than $45, it may not be recommended to purchase the stock as it may be overvalued in relation to its expected future dividends and required return.
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Related Questions
If you are at a university and someone asks "what's your MAJOR?" this is what they
want to know:
a) the secondary courses you are taking in college just for fun
b) the academic discipline to which you have formally committed so you can earn
an undergraduate degree
c) which credit cards you have maxed out to afford tuition, housing, food and books
d) which political party you will agree to join and promote on your campus
Answers
Answer:
the answer is B
Explanation:
You own a construction business and need to hire workers to build a house and add one worker at a time to the added contribution of each worker. At what point will you stop hiring workers ? Relate this process to the three stages of production function as you explain your answer .
Answers
In the long run, all inputs are variable, so the marginal product of labor will continue to decline as more workers are added. Eventually, the marginal cost of hiring additional workers will exceed the marginal benefit, and it will no longer be profitable to hire more workers.
In the context of a construction business, you would likely stop hiring workers when the marginal product of labor begins to decline, or when the marginal cost of hiring additional workers exceeds the marginal benefit. This decision would be based on your analysis of the costs and benefits of hiring more workers, and your assessment of the efficiency and productivity of your construction process
Explain why you think Americans can do yo ensure workers have decent working conditions and pay?
Answers
Answer:
Americans are expected to make sure that discrimination in the workplace is avoided.
If there are 3 spots on an employment application to list references, how many references do you need to list?
none
One
Two
Three
More Then three
Answers
Good references from people you have permission to use, carry much weight with prospective employers.
Build a good base of previous employers, coworkers, character references etc.
An applicants medical information receives from the medical informatuon bureau may be furnished to who?
Answers
Stakeholders and their influence- Who are the stakeholders of your business? How do these stakeholders influence your business? for a pharmacy business
Answers
Answer:
The stakeholders of a pharmacy business include:
Customers: They are the primary stakeholders of the business. They influence the business by determining the demand for the products and services offered by the pharmacy.
Employees: They are responsible for the day-to-day operations of the business. They influence the business by their level of productivity, job satisfaction, and employee retention.
Suppliers: They supply the products and services needed to run the business. They influence the business by their ability to deliver products and services on time and at a reasonable cost.
Shareholders: They own the business and have a vested interest in its financial performance. They influence the business by providing capital and by making decisions about the direction of the business.
Government: They regulate and oversee the pharmacy industry. They influence the business by imposing regulations and laws that the pharmacy must comply with.
Competitors: They also influence the business by determining the level of competition and the prices of products and services in the market.
Community: The community in which the pharmacy is located also influences the business through public opinion and support.
Health Care Providers: They play a vital role in the pharmacy business as they prescribe the medications and influence the demand of the products and services offered by the pharmacy.
Stakeholders influence the pharmacy business by making decisions, providing support, creating competition, and setting regulations. A pharmacy must take into account the interests and needs of all of its stakeholders in order to be successful in the long term.
Explanation:
describe a real or made up example of a contract that includes consideration
Answers
Answer:
It is important that all contracts include consideration in order for any agreement to be legally binding.
The example of a contract of this type is:
Renting a place to use for your sales business. You rent the place for a certain period of time (Let's say one year) and for a settled amount of money. In form of a lease, is stated and stipulated what that amount of money includes (let's say just the place) and what it doesn't include (energy and water bill) as well as the rules for using and living in the place.
This contract applies for both parts once consideration is provided by accepting the terms of conditions and the value agreed.
Explanation:
But this is not my answer I have to give credit to Brainly user keylacordoba.
Process Redesign Assignment The Automobile Driver's License Office has the following process 1. What is the bottleneck task? 2. What is the total capacity of the process? 3. Redesign the process so th
Answers
To determine the bottleneck task and total capacity of the process, we would need more information about the specific tasks and their associated times or cycle times in the Automobile Driver's License Office process.
Without that information, it is not possible to accurately identify the bottleneck or calculate the total capacity.
However, in general, the bottleneck task in a process is the task or step that has the longest cycle time or takes the most time to complete relative to other tasks. It is the step that limits the overall throughput of the process.
To redesign the process, it would be helpful to understand the current process flow, identify areas of inefficiency or bottlenecks, and explore opportunities for improvement. Some common strategies for process redesign include eliminating non-value-added steps, reducing handoffs or wait times between tasks, automating tasks where possible, and streamlining the overall flow of the process. The specific redesign actions would depend on the specific details of the process and the identified areas for improvement.
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Process Redesign Assignment The Automobile Driver's License Office has the following process 1. What is the bottleneck task? 2. What is the total capacity of the process? 3. Redesign the process so that the total capacity increases?
T/F Some multinational corporations are so large that they resemble small countries.
Answers
True. Some large multinational corporations are so vast and powerful that they possess an economic influence and political clout that can rival small countries. These corporations, which are often referred to as global or transnational corporations, have operations and offices in multiple countries and generate massive revenues.
They also have significant political and social influence, as their actions can impact entire economies and communities. For example, some large corporations have been accused of violating human rights, engaging in environmental exploitation, and contributing to income inequality. Their reach and power have prompted concerns about accountability and transparency, and some have called for greater regulation and oversight of these corporations.
Overall, the size and influence of some multinational corporations underscore the need for careful scrutiny and management of their activities.
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Which best explains how consumers purchases influence the decisions of
producers?
Producers can judge whether they have an efficient production process based
on what consumers buy.
Producers can determine how best to reduce waste by knowing what consumers
don't buy
Producers can predict the effects of new technologies based on the
technologies used by consumers.
Producers can figure out what consumers are willing to pay based on what they
buy
WU
Answers
Answer:
Producers can figure out what consumers are willing to pay based on what they buy
TRUE / FALSE. it is illegal for companies to buy and sell personal data collected through marketing and sales efforts.
Answers
FALSE. It is not inherently illegal for companies to buy and sell personal data collected through marketing and sales efforts.
The legality of buying and selling personal data depends on the applicable laws and regulations in a particular jurisdiction. In many countries, companies are allowed to buy and sell personal data as long as they adhere to specific privacy laws and regulations governing data protection and consent.
For example, in the European Union, the General Data Protection Regulation (GDPR) sets strict guidelines for the collection, processing, and transfer of personal data. It requires companies to obtain explicit consent from individuals before collecting their data and imposes obligations regarding data security, transparency, and accountability. Under the GDPR, companies can buy and sell personal data if they comply with the regulations and ensure that the necessary privacy safeguards are in place.
However, it is important to note that the legality of buying and selling personal data may vary across jurisdictions. Some countries may have more stringent regulations or outright bans on the trade of personal data. It is crucial for companies to understand and comply with the specific laws and regulations governing data privacy and protection in their respective jurisdictions to ensure their practices are lawful and ethical.
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Define the term unemployment and explain the relationship between unemployment and crime
Answers
Answer:
The term unemployment refers to a situation where a person actively searches for employment but is unable to find work.
an illegal act for which someone can be punished by the government. especially : a gross violation of law. : a grave offense especially against morality
Explanation:
hope it helps️️
who created the periodic table
Answers
Answer:
Dmitri Mendeleev
Explanation:
Hope this helped, Have a Wonderful Day!!
If supply increases and demand stays the same, there will be a
A) higher equilibrium price and quantity
B)lower equilibrium price and higher quantity
C) lower equilibrium price and quantity
D) higher equilibrium price and lower quantity
Answers
Answer:
B) lower price increase quantit
Explanation:
All economies are technically mixed.
A. True
B. False
Answers
Answer:
True
Explanation:
Every economy in the real world regardless of their common designation (such as capitalism, socialism, or communism) make use of both markets and governments and is technically a mixed economy. ... Governments force allocation through involuntary taxes, laws, restrictions, and regulations.
Answer:
yes
Explanation:
I just know it hope it helps bro
according to karl marx, how is class consciousness, or revolutionary consciousness, developed? a. by the lower classes recognizing how society works and challenging those in power b. through a religious awakening c. by achieving perfect industrial production so that most workers are unemployed d. by a eurocentric party leading a violent revolution
Answers
According to Karl Marx, class consciousness, or revolutionary consciousness, is developed through the process of class struggle.
What is Marx's Class Consciousness Development?A class of people's awareness and comprehension of their own circumstances, interests, and social position is referred to as having class consciousness in Marx. Members of the class learn to understand the ways in which they are oppressed and exploited by the current system as a result of class struggle, which is how this consciousness grows.
Marx thought that one of the key elements in the shift to a socialist society is the emergence of class consciousness. The ruling class in a capitalist economy employs a number of strategies to hold onto its position of authority and keep the working class from understanding its own interests. To control and splinter the working class, for instance, the ruling class might employ religion, the media, or education.
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what is the difference between the three governmental protection companies?
FDIC
CFPB
SEC
full explanation please
Answers
Based on functionalities and jurisdictions, the difference between the governmental protection companies listed here is that FDIC ensures the safety of financial institutions, CFPB ensures financial markets work for all parties involved, and SEC ensures the protection of investors in corporate sectors.
What is the difference between the FDIC, CFPB, and SEC?Generally, the term FDIC is an acronym for Federal Deposit Insurance Corporation and was established to maintain stability and public confidence in financial institution practices.
On the other hand, CFPB is an acronym for the Consumer Financial Protection Bureau and was established to ensure that consumer financial markets work for consumers, responsible providers, and the economy in general.
Also, the SEC which stands for Securities and Exchange Commission (SEC) is the national government regulatory agency responsible for monitoring the corporate sector, the capital market participants, the securities and investment instruments market, and the protection of the investing public.
Therefore, it is concluded that while all these aforelisted government agencies are created to solve impending issues in financial sectors, their roles, and functionalities are different.
FDIC protects financial institutions
CFPB protects financial markets
While SEC protects investors.
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Allison would like to find all records that are in stock. In her database, she has a field named "in stock." When the item is in stock, a "yes" appears. What should Allison do?
Conduct a query and set the criteria as =yes.
Conduct a query and set the criteria to >2.
Locate each record and check each one.
Sort the records in ascending order by item number.
Answers
Answer: she should conduct a query and set the criteria to >2
Explanation:
Don’t know this but I tried I am only in 9th grade
bro r u kidding me smh
Answers
Answer: THATS SO F-U-C-K-I-N-G STUP.ID!!!!!!!!! HOW HARD IS IT FOR THEM TO GIVE YOU MORE TIME!!!!!!!!!
Explanation:
Answer:
But from the screenshot it seems like you spent alot of time on ur work, and they still give you an F and D?! That's literally messed up. ur teachers should understand :/
Lochmere Corporation is evaluating a taxable bond at 7% and a municipal bond at 5.75%. What is the break-even tax rate?
a) 18%
b) 88%
c) 82%
d) 12%
e) 44%
Answers
To determine the break-even tax rate between a taxable bond and a municipal bond, we need to find the tax rate at which the after-tax yield on the taxable bond equals the yield on the municipal bond.
Let's assume the break-even tax rate is represented by T.
For the taxable bond, the after-tax yield can be calculated as (1 - T) multiplied by the bond yield, which is 7% in this case. So, the after-tax yield on the taxable bond is 0.07(1 - T).
For the municipal bond, the yield is already tax-exempt, so the after-tax yield remains the same at 5.75%, which is 0.0575.
Setting these two equal to each other, we can solve for T:
0.07(1 - T) = 0.0575
Simplifying the equation:
0.07 - 0.07T = 0.0575
0.0125 = 0.07T
T = 0.0125/0.07
T ≈ 0.1786
So, the break-even tax rate is approximately 17.86%, which can be rounded to 18%.
Therefore, the correct answer is:
a) 18%
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Which of the following is not an objective of proactive scanning? Identify and define potential opportunities and threats. Paint a picture of the future 20+ years into the future. Detect important cultural, economic, legal, political, and technological events and trends. Promote an adaptable, forward-looking mind-set among managers and employees. Help managers understand the company’s strengths and weaknesses.
Answers
The option that is not an objective of proactive scanning is: Paint a picture of the future 20+ years into the future.
What is proactive scanning?Proactive scanning is the use of automated tools to detect suspicious programs/contents in library, driver, and executable files.
This scanning method can be used to detect threats and important events. They could also serve useful functions to employers and managers.
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Why are many companies so concerned about brand management?
Companies use brand management
A. to produce a product identical to that of competitors and create network edemnalities in the long run
B. to maintain product differentiation and earn economic profits in the short run
C. to eliminate excess capacity and earn economic profits in the long run
D. to collude with other forms and earn economic profits in the short run,
E. to achieve productive efficiency and maximize economic surplus in the long run
Answers
The correct answer is: B. to maintain product differentiation and earn economic profits in the short run
Many companies are concerned about brand management because it allows them to establish and maintain a unique brand identity and product differentiation in the market. A strong brand can create customer loyalty, trust, and a competitive advantage, which can lead to increased market share and higher profitability.
By effectively managing their brand, companies can differentiate their products or services from competitors, creating a perception of value and quality that justifies higher prices. This enables them to earn economic profits in the short run by capturing a larger share of the market and commanding premium prices.
Brand management helps companies build a strong brand image, increase customer recognition and loyalty, and ultimately achieve a competitive edge in the marketplace, leading to improved financial performance and profitability.
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Which is a characteristic of effective notes?
a. They cover all the material in great detail.
b. They are limited to broad ideas covered by textbooks.
c. They are effective only in courses that are lecture-based.
d. They help you understand and remember concepts and facts.
Answers
Answer:
I think its d. They help you understand and remember concepts and facts.
Explanation:
Which of the following are clichés?
Answers
Answer:
2nd scentence
Explanation:
Quick as a flash
Easier said than done
First and foremost
Jupiter Inc. ’s shares are currently being traded at their intrinsic value of $105 each. The company is expected to pay a dividend of $3. 20 next year, which is expected to grow at a constant rate forever. Given a required rate of return of 13%, the growth rate in dividends is closest to:
Multiple Choice
9%
9. 95%
25%
30%
Answers
The growth rate in dividends is closest to 9.95%.
1. To find the growth rate in dividends, we need to use the Gordon Growth Model, which is given by the formula:
Dividend Growth Rate = (Dividend per Share / Intrinsic Value per Share) - 1
2. In this case, the Dividend per Share is given as $3.20, and the Intrinsic Value per Share is given as $105.
3. Substituting these values into the formula, we have:
Dividend Growth Rate = ($3.20 / $105) - 1
4. Simplifying the expression, we get:
Dividend Growth Rate = 0.030476 - 1
Dividend Growth Rate ≈ -0.969523
5. Since we are looking for a positive growth rate, we take the absolute value of -0.969523, which gives us approximately 0.969523.
6. Finally, to convert the growth rate to a percentage, we multiply by 100, giving us a growth rate of approximately 9.95%.
Therefore, the growth rate in dividends is closest to 9.95%.
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When a company wants to design a new wireless headset it invited a group of interested users to comment on and try out various product prototypes during its design process. This is an example of what type of process?
Answers
Answer:
Testing process...?
Would have been better if given options...
This is an example of what type of process testing process.
What is the product testing process?
The four essential strategies of verification are Inspection, Demonstration, test, and evaluation. The four strategies are somewhat hierarchical in nature, as every verifies the necessities of a product or system with growing rigor.
Product trying out u.s. is a legitimate manner to get a risk to get a few virtually valuable merchandise totally free. but you want to be aware that it's far like a lottery – there is no guarantee you may get to test a product.
The Product trying out exercise gives consulting for automation engineering, solutions, and their validation; Interop and Certification for servers, switches, and storage; Infrastructure Validation and workload-based totally benchmarking for Datacenter provider providers.
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Blank addresses change depending on the cells you
Blank addresses do not change if you copy them to a different cell.
copy them to.
A1) absolute
A2) mixed
A3) relative
B1) absolute
B2) mixed
B3) relative
Answers
Answer:
absolute addresses change depending on the cells you copy them to.
relative addresses do not change if you copy them to a different cell.
Explanation:
A cell reference is a single cell or range of cells on a Excel worksheet. When calculations are done, these cells can be referred to. The cells are referred to using their row value and column value.
Relative references (or addresses) changes based on the position of rows and columns when a formula is copied to a different cell.
Absolute references (or addresses) do not change (remain constant) even if the formula is copied to a different cell.
Methods of evaluating the
performance and productivity of an
individual or group in relation to
predetermined criteria and
measurable goals are
measurable goals
Answers
Answer:
True
Explanation:
Methods of evaluating the performance and productivity of an individual or group in relation to predetermined criteria and measurable goals are performance assessments.
you maintain an average balance of $950 on your credit card, which carries an 18% annual interest rate
Answers
The annual interest expense on an average balance of $950 on a credit card with an 18% interest rate would be $171.
How much would you pay in annual interest on a $950 average credit card balance with an 18% interest rate?To calculate the annual interest expense, we multiply the average balance by the annual interest rate. In this case, the average balance is $950 and the annual interest rate is 18%.
Interest Expense = Average Balance * Annual Interest Rate
Interest Expense = $950 * 0.18
Interest Expense = $171
Therefore, the annual interest expense on an average balance of $950 with an 18% interest rate would be $171.
It's important to be aware of the interest rates on credit cards and to manage credit card balances responsibly to avoid accumulating high interest charges.
Paying off credit card balances in full and on time each month can help minimize interest expenses and maintain a healthy financial standing.
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An organizational model that consists of a company's overseas subsidiaries and is characterized by centralized decision making
and tight control by the parent company over most aspects of worldwide operations is known as the model.
A. international
B. multinational
C. global
D.
transnational
E. intranational
Answers
A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries.