Business, 07.11.2019 05:31, fallenangelsayshush
The risk-free rate of return is 6%, the expected rate of return on the market portfolio is 15%, and the stock of xyrong corporation has a beta coefficient of 2.3. xyrong pays out 45% of its earnings in dividends, and the latest earnings announced were $9.00 per share. dividends were just paid and are expected to be paid annually. you expect that xyrong will earn an roe of 18% per year on all reinvested earnings forever.
a. what is the intrinsic value of a share of xyrong stock? (do not round intermediate calculations. round your answer to 2 decimal places.)
b. if the market price of a share is currently $22, and you expect the market price to be equal to the intrinsic value one year from now, what is your expected 1-year holding-period return on xyrong stock? (do not round intermediate calculations. round your answer to 2 decimal places.)
Answers: 3
Business, 22.06.2019 06:40, jesh0975556
After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?
Answers: 1
The risk-free rate of return is 6%, the expected rate of return on the market portfolio is 15%, and...
Mathematics, 06.10.2020 16:01
Mathematics, 06.10.2020 16:01