This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Tangshan China's stock is currently selling for 160.00 per share and the firm's dividends are ... (Read 91 times)

clippers!

  • Hero Member
  • *****
  • Posts: 828
on: Jul 10, 2018
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
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

B


clippers!

  • Member
  • Posts: 828
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

This 80-year old man in a village in Hubei, China, has slowed down, but he has not retired. He is ... This 80-year old man in a village in Hubei, China, has slowed down, but he has not retired. He is ...
Economic Differentiation in China Economic Differentiation in China
The growth in demand for oil in China is driven by the growth in demand for personal transport The growth in demand for oil in China is driven by the growth in demand for personal transport
The rate of global emissions is rising rapidly, especially in India and China The rate of global emissions is rising rapidly, especially in India and China
Share of Human Capital in Wages in Advanced Countries Share of Human Capital in Wages in Advanced Countries
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Mendel's Pea Experiment

For a complete list of videos, visit our video library