This topic contains a solution. Click here to go to the answer

Author Question: Tangshan China's stock is currently selling for 160.00 per share and the firm's dividends are ... (Read 86 times)

clippers!

  • Hero Member
  • *****
  • Posts: 828
Tangshan China's stock is currently selling for 160.00 per share and the firm's dividends are expected to grow at 5 percent indefinitely. In addition, Tangshan China's most recent dividend was 5.50.
 
  If the expected risk free rate of return is 3 percent, the expected market premium is 4 percent, and Tangshan has a beta of 1.2, Tangshan's stock would be ________.
  A) overvalued because the market price is higher than the resulting share value
  B) undervalued because the market price is less than the resulting share value
  C) overvalued because the resulting share value is higher than the market value
  D) undervalued because the resulting share value is less than the market value

Question 2

Which alternative below is not a bond retirement method?
 
  A)
 
  Redemption at maturity
  B)
 
  Forced liquidation
  C)
 
  Exercising a bond call
  D)
 
  Conversion into shares of common stock



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jackie

  • Sr. Member
  • ****
  • Posts: 324
Answer to Question 1

B

Answer to Question 2

B




clippers!

  • Member
  • Posts: 828
Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

For a complete list of videos, visit our video library