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Economics
what do you mean by human capital ?
A financial analyst has been following Biostar Inc., a new high-growth company. She
estimates that the current risk-free rate is 6.25 percent, the market risk premium is 5
percent, and that Biostar Inc beta is 1.75. The current earnings per share (EPS0) isRM2.50.
The company has a 40 percent payout ratio. The analyst estimates that the company's
dividend will grow at a rate of 25 percent this year, 20 percent next year, and 15 percent
the following year. After three years the dividend is expected to grow at a constant rate of
7 percent a year. The company is expected to maintain its current payout ratio. The analyst
believes that the stock is fairly priced. What is the current price of the stock?
estimates that the current risk-free rate is 6.25 percent, the market risk premium is 5
percent, and that Biostar Inc beta is 1.75. The current earnings per share (EPS0) isRM2.50.
The company has a 40 percent payout ratio. The analyst estimates that the company's
dividend will grow at a rate of 25 percent this year, 20 percent next year, and 15 percent
the following year. After three years the dividend is expected to grow at a constant rate of
7 percent a year. The company is expected to maintain its current payout ratio. The analyst
believes that the stock is fairly priced. What is the current price of the stock?
1- Discuss the advantages and disadvantages of issuing common stock versus long-term debt?
2- The Ship Corp. has paid annual dividends of RM0.48, RM0.60, and RM0.62 a share over the past three years, respectively. The company now predicts that it will maintain a constant
dividend since its business has leveled off and sales are expected to remain relatively
constant. Given the lack of future growth, at what price will you only buy this stock if you
can earn at least a 14 percent rate of return?
3- Active Adventures will pay an annual dividend of RM3.15 a share on their common stock
next week. Last year, the company paid a dividend of RM3.00 a share. The company
adheres to a constant rate of growth dividend policy. What will one share of this common
stock be worth ten years from now if the applicable discount rate is 12.5 percent?
2- The Ship Corp. has paid annual dividends of RM0.48, RM0.60, and RM0.62 a share over the past three years, respectively. The company now predicts that it will maintain a constant
dividend since its business has leveled off and sales are expected to remain relatively
constant. Given the lack of future growth, at what price will you only buy this stock if you
can earn at least a 14 percent rate of return?
3- Active Adventures will pay an annual dividend of RM3.15 a share on their common stock
next week. Last year, the company paid a dividend of RM3.00 a share. The company
adheres to a constant rate of growth dividend policy. What will one share of this common
stock be worth ten years from now if the applicable discount rate is 12.5 percent?
if q=K^0.2 L^0.4 find the elasticity of substitution.
Economics
Consider the following demand and supply model for money. Demand for Money: Mt to the power d=alpha0+alpha1yt+alpha2Rt+alpha3Pt+u1t
Supply of Money: Mt to the power s=beta 0+ beta1yt+u2t where M = Money, Y = Income, P = Price, and R = rate of interest Assume that R and P are pre-determined. a) Check the identification status of demand and supply equations above. b) What method would you use to estimate the supply equation?
Supply of Money: Mt to the power s=beta 0+ beta1yt+u2t where M = Money, Y = Income, P = Price, and R = rate of interest Assume that R and P are pre-determined. a) Check the identification status of demand and supply equations above. b) What method would you use to estimate the supply equation?
Look at the chart displaying the human development index (HDI) worldwide, which is linked to a high standard of living. Based on what you know about developing and developed countries in the world, which sentence is correct?
Economics
please answer the question, see image with diagram:
https://s.yimg.com/hd/answers/i/5f1326513405481c8b60bd85a7001e5b_A.jpeg?a=answers&mr=0&x=1455217785&s=6ca2c8e65d64dabf0cc0f686eea5750b
https://s.yimg.com/hd/answers/i/5f1326513405481c8b60bd85a7001e5b_A.jpeg?a=answers&mr=0&x=1455217785&s=6ca2c8e65d64dabf0cc0f686eea5750b
Creative Technologies Corp. has the following information:
Annual sales RM1,200,000
Current liabilities RM375,000
Days sales outstanding (DSO) (365-day year) 40
Inventory Turnover ratio 4.8
Current ratio 1.2
The company’s current assets consist of cash, inventories, and accounts receivable.
How much cash does the company have on its balance sheet?
Annual sales RM1,200,000
Current liabilities RM375,000
Days sales outstanding (DSO) (365-day year) 40
Inventory Turnover ratio 4.8
Current ratio 1.2
The company’s current assets consist of cash, inventories, and accounts receivable.
How much cash does the company have on its balance sheet?
1- Your company’s current ratio is 0.5x, while your competitor’s current ratio is 1.5x. Both
firms want to "window dress" the coming end-of-year financial statements. As part of
the window dressing strategy, each firm will double its current liabilities by adding
short-term debt and placing the funds obtained in the cash account. Describe the actual
results of these transactions?
2- What would be the effect if a company increases its debt ratio, but leaves its operating
income (EBIT) and total assets unchanged?
3- A fire has destroyed a large percentage of the financial records of the Sunlight Inc. You
have the task of piecing together information in order to release a financial report. You
have found the return on equity to be 18 percent. If sales were RM4 million, the debt
ratio was 0.40, and total liabilities were RM2 million, what was the return on assets
(ROA)?
firms want to "window dress" the coming end-of-year financial statements. As part of
the window dressing strategy, each firm will double its current liabilities by adding
short-term debt and placing the funds obtained in the cash account. Describe the actual
results of these transactions?
2- What would be the effect if a company increases its debt ratio, but leaves its operating
income (EBIT) and total assets unchanged?
3- A fire has destroyed a large percentage of the financial records of the Sunlight Inc. You
have the task of piecing together information in order to release a financial report. You
have found the return on equity to be 18 percent. If sales were RM4 million, the debt
ratio was 0.40, and total liabilities were RM2 million, what was the return on assets
(ROA)?
1- If the goal of a firm is to maximize the shareholders’ wealth, does that mean that profit is
not important all? Explain your answer.
2- Using debt can help reduce the agency problem that may arise between the management
of a company and its shareholders. How is this possible?
3- By giving one example, describe how corporate social responsibility can be consistent with
effort of the management to maximize the firm’s value.
4- Doing business in the era of globalization exposes a company to more challenges. Give one
example of these challenges and explain the action that a financial company must take to
face the challenge.
not important all? Explain your answer.
2- Using debt can help reduce the agency problem that may arise between the management
of a company and its shareholders. How is this possible?
3- By giving one example, describe how corporate social responsibility can be consistent with
effort of the management to maximize the firm’s value.
4- Doing business in the era of globalization exposes a company to more challenges. Give one
example of these challenges and explain the action that a financial company must take to
face the challenge.
