Questions
The cost of retained earnings: If a firm cannot invest retained earnings to earn a rate...

The cost of retained earnings:

If a firm cannot invest retained earnings to earn a rate of return_______________the required rate of return on retained earnings, it should return those funds to its stockholders.

The cost of equity using the CAPM approach:

The current risk-free rate of return (rRFrRF) is 4.67% while the market risk premium is 5.75%. The D’Amico Company has a beta of 0.78. Using the capital asset pricing model (CAPM) approach, D’Amico’s cost of equity is ______________ .

The cost of equity using the bond yield plus risk premium approach:

The Taylor Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company’s cost of internal equity. Taylor’s bonds yield 11.52%, and the firm’s analysts estimate that the firm’s risk premium on its stock over its bonds is 3.55%. Based on the bond-yield-plus-risk-premium approach, Taylor’s cost of internal equity is:

14.32%

15.07%

18.84%

16.58%

The cost of equity using the discounted cash flow (or dividend growth) approach

Johnson Enterprises’s stock is currently selling for $32.45 per share, and the firm expects its per-share dividend to be $2.35 in one year. Analysts project the firm’s growth rate to be constant at 5.72%. Estimating the cost of equity using the discounted cash flow (or dividend growth) approach, what is Johnson’s cost of internal equity?

17.50%

13.61%

12.31%

12.96%

Estimating growth rates:

It is often difficult to estimate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF or DG approach. In general, there are three available methods to generate such an estimate:

Carry forward a historical realized growth rate, and apply it to the future.
Locate and apply an expected future growth rate prepared and published by security analysts.
Use the retention growth model.

Suppose Johnson is currently distributing 45% of its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 14%. Johnson’s estimated growth rate is _________%.

In: Advanced Math

Speaking of the comparison and application of Chebychev's theorem to the Empirical Rule. Why is it...

Speaking of the comparison and application of Chebychev's theorem to the Empirical Rule. Why is it that we need both of these rules if they describe the manner in which our data may be distributed or spread out?

In: Advanced Math

Consider the function given as example in lecture: f(x, y) = (e x cos(y), ex sin(y))...

Consider the function given as example in lecture: f(x, y) = (e x cos(y), ex sin(y)) (6.2) Denote a = (0, π/3) and b = f(a). Let f −1 be a continuous inverse of f defined in a neighborhood of b. Find an explicit formula for f −1 and compute Df−1 (b). Compare this with the derivative formula given by the Inverse Function Theorem.

In: Advanced Math

Discrete Math Course. On Z, let B be the set of subsets A of Z where...

Discrete Math Course.

On Z, let B be the set of subsets A of Z where either A is finite or A complement is finite. Define + and * as union and interception. Show whether or not B is a boolean algebra.

In: Advanced Math

I need a table data and graph for men and women who took college relationships serious

I need a table data and graph for men and women who took college relationships serious

In: Advanced Math

Derive the Secant Method using a linear approximation and prove its convergence.

Derive the Secant Method using a linear approximation and prove its convergence.

In: Advanced Math

By our standards, Xenia-Lepton aliens are huge, strange creatures and their reproductive method is fascinating: while...

By our standards, Xenia-Lepton aliens are huge, strange creatures and their reproductive method is fascinating: while under the influence of a massive gravitational field, a mature Xenia-Lepton sheds several billion sub-atomic particles. These particles combine to form a seed which, if viable, grows rapidly by direct conversion of dark energy to matter. The rate of growth is directly proportional to how much the juvenile has yet to grow before reaching the height of a Xenia-Lepton adult. All adult Xenia-Leptons have exactly the same height, which is 98m. The coefficient of proportionality for the growth rate has been determined to be 0.046 . 1) Determine the height of a Xenia-Lepton alien that is 42 years old. 2) When a Xenia-Lepton reaches exactly 99.0% of the adult height, they change colour from bright, shining gold to pitch black. At what age does this occur? Provide both answers with TWO decimal places, using the normal convention. Pad with zeros if necessary. Height at 42 years (m) = Age at colour-change (years) =

In: Advanced Math

Do a search on the internet using the terms special functions differential equations

Do a search on the internet using the terms special functions differential equations

In: Advanced Math

prove that 2/pi is less than or equal to (sinx)/x which is less than or equal...

prove that 2/pi is less than or equal to (sinx)/x which is less than or equal to 1. for x is in (0,pi/2]

In: Advanced Math

solve using forbenious series 3xy''+(2-x)y'-y=0

solve using forbenious series

3xy''+(2-x)y'-y=0

In: Advanced Math

The market demand function for corn is               Qd = 25 - 2P The market...

The market demand function for corn is

              Qd = 25 - 2P The market supply function is

                Qs = 5P -3

both measured in billions of bushels per year. What would be the welfare effects of a policy that put a cap of $3.50 per bushel on the price farmers can charge for corn? (Assume that corn is purchased by the consumers who place the highest value on it.)

Instructions: Round quantities to one decimal place. Round prices and surpluses to two decimal places.

Amount ($)
  New level of consumer surplus billion ?
  New level of producer surplus billion ?
  New level of aggregate surplus billion
  Deadweight loss billion

In: Advanced Math

Use the Laplace transform to solve the following initial value problem: x′=12x+3y y′=−9x+e^(3t) x(0)=0, y(0)=0 Let...

Use the Laplace transform to solve the following initial value problem:

x′=12x+3y

y′=−9x+e^(3t)

x(0)=0, y(0)=0


Let X(s)=L{x(t)}, and Y(s)=L{y(t)}.
Find the expressions you obtain by taking the Laplace transform of both differential equations and solving for Y(s) and X(s):

X(s)=

Y(s)=

Find the partial fraction decomposition of X(s)X(s) and Y(s)Y(s) and their inverse Laplace transforms to find the solution of the system of DEs:

x(t)

y(t)

In: Advanced Math

How many ways are there to arrange the letters ‘a’, ‘b’, ‘c’, ‘d’, and ‘e’ such...

How many ways are there to arrange the letters ‘a’, ‘b’, ‘c’, ‘d’, and ‘e’ such that ‘a’ is not immediately followed by ‘e’ (no repeats since it is an arrangement)? Justify your answer using the product rule, the sum rule, and/or the subtraction rule .

In: Advanced Math

X^2y''+6xy'+6y=4lnx, cauchy euler


X^2y''+6xy'+6y=4lnx, cauchy euler

In: Advanced Math

let A =[4 -5 2 -3] find eigenvalues of A find eigenvector of A corresponding to...

let A =[4 -5
2 -3]

find eigenvalues of A
find eigenvector of A corresponding to eigenvlue in part 1
find matrix D and P such A= PDP^-1
compute A^6

In: Advanced Math