The intrinsic value of a zero-growth stock can be found simply by dividing the dividend by the required rate of return

Indicate whether the statement is true or false.

Answer: TRUE

Business

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Media monitoring allows firms to

A) know which of their advertising campaigns is likely to win a creative award. B) determine with some certainty which connectors are passing their message along. C) pull controversial commercials from television before the government can intervene. D) scan programming and advertising content for the latest product trends. E) keep track of sales people in order to improve their personal selling efforts.

Business

Your firm is considering a new investment. The initial cost (today) is $25,000. The project generates year-end annuity cash flows of $15,000 per year for the next two years

If the hurdle rate for the project is 12% and the reinvestment rate is 9%, calculate the MIRR. Is this an acceptable project? A) 8.00%; no, the MIRR is less than the hurdle rate B) 10.10%; yes, the MIRR is greater than the reinvestment rate C) 13.10%; yes, the MIRR is greater than the reinvestment rate D) 10.10%; no, the MIRR is less than the hurdle rate

Business