The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to grow at the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to grow at the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

1. The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to grow at the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to grow at the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

1. The following information is given for a stock. Investors assume that the return of the stock is best explained by a two-factor model that includes the market factor and a second risk factor. Using a dividend discount model, what is the price for this stock?

Stock covariance with the market= 0.5

Market variance = 0.25

Stock covariance with a second risk factor= 0.6

Variance of the second factor= 0.3

Market Premium:3%

Second factor risk premium=1%

Risk free rate =2 %

Current earnings per share= $5,

The ROE is expected to shrink (decrease) at the rate 10% for first 5 years

The ROE is expected to growat the rate 8% forever after the first 5 years

Payout for the first 5 years: 50%

Payout after 5 years: 50%

Juan is leasing a new car. The price of the car is 35,000. The terms of
the lease go as follows. There are 120 monthly payments with the first payment
being one month from now. The nominal rate of interest is 8.4% convertible
monthly. The payments in the first year are X. In the second year, the payments
are 1.01X, in the third 1.01 X^2 and so on. Just after his 60th payment, Juan
sells his car for Y dollars. Before Juan receives a check, he first must pay off the outstanding loan balance still owed just after his 60th payment to the lender.
What is the smallest value of Y such that Juanís check is at least 20000?

(a) 15,000-15,500
(b) 23,500-24,000
(c) 34,500-35,000
(d) 41,500-42,000
(e) 44,000-44,500

Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 41,000 for January, 61,000 for February, and 51,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.

  
Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar.)

1.) In the Stackelberg model of oligopoly:

a.) each firm takes the other firm's output as constant in deciding its own output level

b.) the leader firm's output is determined at the point where demand equals price

c.) the leader firm selects its output first, taking the reactions of follower firms into account

d.) each firm decides its output based on the interaction of demand and supply

.

2.) A profit-maximizing monopoly firm that sells output in two distinct markets, A and B, will be in equilibrium when:

a.) the price in each market is equal to its marginal cost of production

b.) the marginal revenue in each market is equal to the price in that particular market

c.) the marginal revenue in each market is equal to its marginal cost of production

d.) the gap between price and marginal cost is maximized in each market

The following data was collected to explore how the number of square feet in a house, the number of bedrooms, and the age of the house affect the selling price of the house. The dependent variable is the selling price of the house, the first independent variable (x1) is the square footage, the second independent variable (x2) is the number of bedrooms, and the third independent variable (x3) is the age of the house.

Find the p-value for the regression equation that fits the given data. Round your answer to four decimal places.