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 40 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
Wow, this really help

mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Cai Guo-Qiang, Project to Extend the Great Wall of China by 10,000 Meters: Project for ... Cai Guo-Qiang, Project to Extend the Great Wall of China by 10,000 Meters: Project for ...
Energy in China Energy in China
Social Conditions in China Social Conditions in China
The growth of GHG emissions is greatest in the rapidly growing economies of India and China The growth of GHG emissions is greatest in the rapidly growing economies of India and China
Share of Human Capital in Wages in Advanced Countries Share of Human Capital in Wages in Advanced Countries
Age structure for three countries (China) Age structure for three countries (China)
Video: Types of energy transfer reactions: oxidation-reduction reactions and ATP generation reactions

For a complete list of videos, visit our video library