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

That answer is true

Answer from: Quest

; djf; as

Another question on Business

Business, 21.06.2019 21:00

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 machine-hours were used during the year. required: 1. compute the amount of underapplied or overapplied overhead cost for the year. 2. prepare a schedule of cost of goods manufactured for the year.

Answers: 3

Answer

Business, 22.06.2019 03:20

Look at this check register. calculate the current balance. check date transaction (+) deposit balance 5/1 5/3 $82.92 debit 8.00 78.24 005 monthly fee phone bill paycheck 1 125.00 5/15 5/17 5/20 atm 40.00 56.50 006 t ennis lessons the current balance is?

Answers: 1

Answer

Business, 22.06.2019 19:50

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:

Answers: 1

Answer

Business, 22.06.2019 23:30

Lucido products markets two computer games: claimjumper and makeover. a contribution format income statement for a recent month for the two games appears below: claimjumper makeover total sales $ 30,000 $ 70,000 $ 100,000 variable expenses 20,000 50,000 70,000 contribution margin $ 10,000 $ 20,000 30,000 fixed expenses 24,000 net operating income $ 6,000 required: 1. compute the overall contribution margin (cm) ratio for the company.. 2. compute the overall break-even point for the company in dollar sales. 3. complete the contribution format income statement at break-even point for the company showing the appropriate levels of sales for the two products. (do not round intermediate calculations.)

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