How much to pay for a single share of generic brands stock

Assignment Help Econometrics
Reference no: EM13221354

Generic Brands is expected to earn a profit of $1 million each year forever into the future. If the interest rate is 5%, and there are 20,000 shares of company stock outstanding, how much will investors be willing to pay for a single share of Generic Brands stock?

Reference no: EM13221354

Questions Cloud

Explain the lewis structures that is most important in becl2 : Using formal charges, draw the resonance form from among all the Lewis structures that is most important in describing BeCl2.
Analyze the impact of revenue cycle on cash budget : Analyze the impact of revenue cycle on cash budget and the crucial impact on working capital.
Undertake a high-risk gold mining venture in canada : Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada.
Analyze the impact of collections and claim denials : Analyze the impact of collections and claim denials on managing receivables and the revenue cycle of a healthcare organization.
How much to pay for a single share of generic brands stock : Generic Brands is expected to earn a profit of $1 million each year forever into the future. If the interest rate is 5%, and there are 20,000 shares of company stock outstanding, how much will investors be willing to pay for a single share of Gene..
Discuss the various costs and their relationship to planning : Discuss the various costs and their relationship to planning, budgeting, and control.
Explain what are the dimensions of the cube : A perfect cube of aluminum metal weighs 20.00g. The density of of aluminum is 2.70 g/ml. What are the dimensions of the cube?
Conduct a swot analysis for a company : Conduct a SWOT analysis for a company that you would like to work for after graduation. Assess the company against the strengths, weaknesses, threats and opportunities contained in the SWOT matrix.
Determine how many unit will t produce : consider a monopolist facing the market demand p=100-2q. Marginal cost equals to 10; How many unit will t produce At what price Compute and identify in a graph: monoplist profit, consumer surplus and deadweith loss.

Reviews

Write a Review

Econometrics Questions & Answers

  Write down the profit function for each firm

There are two firms that engage with a Cournot competition with the inverse demand curve given by P=1000-5Q. Suppose the two firms have constant marginal costs $5 and $10. a). Write down the profit function for each firmb). Firm 2 produces 10 units, ..

  What total surplus will result from a transaction

Consider a seller who values a car at $9,500 and a buyer who values the same care at $10,000. What total surplus will result from a transaction between the two when the seller is faced with the follow sales tax rates: 0%, 2%, 4%, 6%, and 8%

  What is the price elasticity of demand

Qx= 1100-30Px-40Py+30Pz+.025M, where M is income and Py and Pz are the prices of related goods. Py=$15, Pz=$50, and M=$40,000. Now assume Px=$60, and income is still $40,000. What is the price elasticity of demand

  Fitting a straight line to a set of data yields

An agent for a residential real estate company has the business objective of developing more accurate estimates of the monthly rental cost for apartments. Toward that goal, the agent would like to use the size of an apartment, as defined by square..

  Determine the interest rate compounded semiannually

every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.

  Determine how much the consumption of the good

Suppose the own rice elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will cha..

  What open market policy would recommend to increase income

Say that investment increases by 100 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 3. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what op..

  Why you would have definitely chosen the camry

You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for $25,000, at a special sale price of $20,000.

  Find how much will the profit or loss be

Refer to the above data. If the product price is $55, at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss How much will the profit or loss be. will the firm realize an economic profit, break even, ..

  Explain large configuration relative to large configuration

A basketball manufacturer is considering a number of options for its new factory. Given the following costs and benefits of the four different factory configurations, what are the marginal costs and benefits of the Extra Large configuration

  Find the average cost function

A contractor purchases a piece of equipment for $26,000. The equipment requires an average expenditure of $9.25 per hour for fuel and maintenance, and the operator is paid $15.50 per hour to operate the machinery. Find the average cost function.

  What was growth rate of nominal gdp between 1999 and 2000

Year nominal gdp gdp deflator ( base year 1996) 2000 9873 118 1999 9269 113 a.what was the growth rate of nominal gdp between 1999 and 2000 b.what was the growth rate of the gdp deflator between 1999 and 2000

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd