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vivado
2 months ago
14

Two central components of the CAPM are the​ ________. A. riskminus free rate and the market risk premium B. risk premium and the

inflation rate C. market rate and the inflation premium D. inflation rate and the market rate
Business
1 answer:
soldi70 [3.6K]2 months ago
7 0

Answer:

A. risk-free rate and the market risk premium

Explanation:

The Capital Asset Pricing Model (CAPM) is used to determine the expected rate of return. Its formula is as follows:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

Where, the term (Market rate of return - Risk-free rate of return) is referred to as the market risk premium and it is used for calculations.

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Procter and Gamble​ (PG) paid an annual dividend of $ 2.87 in 2018. You expect PG to increase its dividends by 8.0 % per year fo
Mariulka [3825]

Answer:

$73.47

Explanation:

2.87 es el dividendo actual pagado (D0)

Utiliza eso para calcular los dividendos para los próximos 5 años;

D1 = D0(1+g); donde g es la tasa de crecimiento

D1 = 2.87(1.08) = 3.0996

D2 = 3.0996(1.08) = 3.3476

D3 = 3.3476(1.08) = 3.6154

D4 = 3.6154(1.08) = 3.9046

D5 = 3.9046(1.08) = 4.2170

Luego, calcula los flujos de efectivo terminales;

D6 (año 2024) = 4.2170 (1.03) = 4.3435

Calcula el valor presente de todos los dividendos utilizando una tasa de descuento del 8% con la fórmula; PV = FV/(1+r)^{n}

PV(D1) = 2.87

PV(D2) = 2.87

PV(D3) = 2.87

PV(D4) = 2.87

PV(D5) = 2.87

PV del valor terminal; PV(D6 en adelante) = \frac{\frac{4.3435}{(0.08-0.03)} }{1.08^{5} } = 59.1223

Suma los PV para hallar el valor por acción;

$2.87 +$2.87 +$2.87 +$2.87 +$2.87+ $59.1223 = $73.47

8 0
2 months ago
Compuvac Company has just completed its first pass forecast using the projected balance sheet method. need a total of 13,050,00
Nady [3600]
The incremental change in AFB amounts to $480,000. (a) The debt totals $4,000,000 with a 10% interest rate. This implies that interest expenditure amounts to 10% of the debt, resulting in $400,000 (10% of $4,000,000). (b) The dividend to be paid is $0.48 per share, with 500,000 shares in total. Thus, the dividend payment equals $0.48 per share multiplied by the number of shares, which works out to $240,000. (c) It's given that the second taxes would be $160,000 lower, indicating outgo will also decrease accordingly. Consequently, the incremental AFN is computed as total interest plus total dividends minus tax savings = $400,000 + $240,000 - $160,000, which totals $480,000.
6 0
1 month ago
Kalyan Singhal Corp. makes three products, and it has three machines available as resources as given in the following LP problem
soldi70 [3635]
a) X1=5.64 X2=4.57 X3 = 8.59 Optimal solution = 104.77 b) An additional hour on machine 3 = 105.42 – 104.77 = 0.64 c) An extra 15 hours on machine 2 = 105.37 - 104.77 = 0.6 Please refer to the details given in the problem. Reach out to me if you have questions; all exercises have been resolved on a single sheet with the necessary formulas. SOLVED WITH EXCEL SOLVER.
4 0
1 month ago
On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2015, Pre
Free_Kalibri [3773]

Answer:

As of March 31, there's a debt of $25,000

In April, $10,000 worth of merchandise is sold to Cars Inc. (with a COGS of $8,000)

Cars made a payment of $12,000 to Preston to reduce its accounts payable

On March 31, Preston reported accounts receivable at $25,000.

By April 30, accounts receivable decreased to $23,000, cash increased by $12,000, and retained earnings are expected to rise by $2,000.

The income statement will reflect a sales revenue increase of $10,000 minus $8,000 COGS, resulting in a $2,000 profit, thus contributing to retained earnings.

5 0
2 months ago
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