Business, 26.06.2021 19:10 china236

Sony Industries stock has a beta of 1.5. The company just paid a dividend of $20, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, a dn Treasury bills are yielding 5.5 percent. The most recent stock price for Sony is $72. a. Calculate the cost of equity using DCF method.
b. Calculate the cost of equity using SML method.
c. Why do you think your extimates in (a) and (b) are so different?

Answers: 3

Show answers

Answers

Answer from: Vimmia

Stock's beta is an measure to asses the volatility of stock price to the entire market. Beta can be either positive or negative, in which each situation will have a different implication. A positive beta implies that the stock price will tend to increase if the entire market is bullish.Answer and Explanation: 1a. Estimate the cost of equity, using the DDM method:b. Estimate the cost of equity, using the SML method:

Answer from: danam04

I have no idea abouts this

Answer from: Quest

answer; ///global;

Answer from: Quest

answer; /// radio frequency identification;

Another question on Business

Business, 22.06.2019 11:10

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

Answers: 2

Answer

Business, 22.06.2019 12:20

Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount

Answers: 2

Answer

Business, 22.06.2019 13:50

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

Answers: 2

Answer

Business, 22.06.2019 17:50

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?

Answers: 1

Answer

You know the right answer?

Sony Industries stock has a beta of 1.5. The company just paid a dividend of $20, and the dividends...

Questions