How much would you pay for a share of stock today if you expect it will pay an annual dividend of $2.50 for the next two years and will sell for $58 two years from now?Assume your required rate of return on this stock is 13 percent.
dq 1Describe the error in the conclusion. Given: There is a linear correlation between the number of cigarettes smoked and the pulse rate. As the number of cigarettes increases the pulse rate increases. Conclusion: Cigarettes cause the pulse rate to increase.dq 2Now that you are familiar with the basic concepts of statistics, what are some…
Alpha Corporation has outstanding an issue of preferred stock with a par value of $100. It pays an annual dividend equal to 8% of par value. If the required return on Alpha’s preferred stock is 6%, and if Alpha pays its next dividend in 1 year, what is the market price of the preferred stock…
Homework 7ECO 6416: APPLIED BUSINESS RESEARCH TOOLSFall 2016Submission due date: 12/1/20161. Let Y be a random variable. Write the expression for E(Y) and the variance of Y i.e. Var(Y)2. Suppose you assign the following subjective probabilities for your final grade in your statisticscourse (the standard GPA scale of 4 = A to 0 = F…
Introduction:You are the senior financial analyst for Fosbeck Generic Drug Co (Fosbeck). The firmmanufactures and sells generic over-the-counter drugs in plants located throughout the country.You have been asked to generate some answers to questions emanating from the Board ofDirectors. These questions can be grouped into two broad categories – what projects to choosefor the near…
Walmart has developed their best available project that will require an immediate outflow (an investment today) of $48855. The project’s long-term cash flows are expected to be $22950 per year for 4 consecutive years beginning in one year. If the required rate of return is 9.75%, calculate the project’s NPV.
DHS = Department of Homeland SecruityYour new boss is not aware of the DHS’s operating agencies and their missions. She has asked that you provide her with an e-mail response identifying those operating agencies and their missions. She also wants an analysis of at least 2 of these agencies, including how they support the total…
