Angel recently purchased a block of 100 shares of Hayley's Optical common stock for $6,000. The stock is expected to provide an annual cash flow of dividends of $400 indefinitely
Assuming a discount rate of 8 percent, how does the price Angel paid compare to the value of the stock?
The value of the stock is = = $5,000
Angel paid $1,000 more than the value of the stock.
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Differentiation that is based on which of the following yields a more durable and profitable competitive edge?
a. comprehensive customer service b. technical superiority c. product innovation d. cosmetic changes to
Hilltop Golf Course is planning for the coming golfing season
Investors would like to earn a 10% return on the company's $50,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $32,000,000 for the season. About 500,000 rounds of golf are expected to be played each year. Variable costs are about $17 per round of golf. Hilltop golf course has a favorable reputation in the area and, therefore, has some control over the sales price of a round of golf. Using a cost-plus pricing approach, what sales price should Hilltop charge for a round of golf to achieve the desired profit? A) $64 B) $81 C) $47 D) $91