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- The total value of a firm's stock which can be computed by multiplying the number of shares outstanding by the market price per share is called what? a. Market capitalization b. Market return c. Market weighted d. Market betaMembo Inc. just paid a dividend of $4.6 per share. Dividends are expected to grow at 6%, 5%, and 3% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 2% indefinitely. Stockholders require a return of 9 percent to invest in Membo’s common stock. Compute the value of Membo’s common stock today. (SHOW ALL WORK IN WORD FORMAT PLEASE)How is the M 2money stock measured in South Africa? List ALL the components
- A ________________ operates directly between a saver with financial assets to invest and an entity who will receive those assets in exchange for paying a ________________ . Group of answer choices A. public company; higher rate of interest A. public company; higher rate of interest C. private company; higher rate of interest D. stock market; rate of return Not GRADED ASSIGNMENT......In a financial market a stock is traded with a current price of 50. Next period the price of the stock can either go up with 30 per cent or go down with 25 per cent. Risk-free debt is available with an interest rate of 8 per cent. Also traded are European options on the stock with an exercise price of 45 and a time to maturity of 1, i.e. they mature next period. Find prices of Arrow-Debreu securities.Bonds issued by corporations and exposed to default risk are classified as A. corporation bonds B. default bonds C. risk bonds D. zero risk bonds Only typed solution
- A stock you are evaluating is expected to experience supernormal growth in dividends of 12 percent over the next three years. Following this period, dividends are expected to grow at a constant rate of 4 percent. The stock paid a dividend of $1.50 last year and the required rate of return on the stock is 11 percent. Calculate the stock's fair present value. (Do not round intermediate calculations.) Please show all the steps, including the equation(s).You’ve recently learned that the company where you work is being sold for $500,000. The company’s income statement indicates current profits of $25,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” indefinitely and that the interest rate will remain constant at 9 percent, at what constant rate does the owner believe that profits will grow? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The financial statement that displays the revenues and expenses of a company for a particular period of time is: A)Income statement B)Fund Flow Statement C)Balance Sheet D)Cash Flow Statement
- The Franko Company has a beta of 1.20 By what percent will the rate of return on the stock of Franko Company increase if the market rate of return rises by 3%?Phil’s Flowers (PF) currently has 5,600,000 shares of stock outstanding that sell for $117 per share. Assuming no market imperfections or tax effects exist, what will be the total number of shares and the share price after each of the following? (Please consider each one independently). c) PF has a $2.50 cash dividend? (Step by step solutions )The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared? Group of answer choices.... $60,000. $20,000. $120,000. $100,000.