User Account

All Pages

What is intel required rate of return

Assignment Help Business Management
Reference no: EM132828420

Intel Corp. (INTC) trades for $60 a share, has current earnings of $5, a plow-back ratio of 72%, and a beta of 1.2. The risk-free rate is 1% and the market risk premium is 5%.

a. What is Intel's required rate of return?

b. Using the Gordon Growth Model, what growth rate is implied by the current market valuation of Intel?

c. Your own analysis of the microchip industry shows that Intel's actual growth rate will be 5%. Based on this analysis, you buy Intel today. Tomorrow, news comes out and the rest of the market comes to agree with your predicted growth rate, which becomes reflected in Intel's stock price. What was your holding period return (HPR) between today and tomorrow (no need to annualize, just report the HPR)?

Reference no: EM132828420

Questions Cloud

Determine the net income reported by Sunland Consulting : Sunland made an additional investment of $8000 and withdrew cash of $15000 during the year. Determine the net income reported by Sunland Consulting for the year
What is project net present value for florida seaside oil : Florida Seaside Oil Exploration Company, If the company chooses to drill today, what is the project net present value? Round your answer to five decimal places.
Forecasting : Which variables are used for short-range forecasting, long-range forecasting, or for both. Make sure you support your selections.
Identify the impact on variances : Identify the impact on variances.As demand for the product grows more in the market, many competitors entered in to the market.
What is intel required rate of return : Using the Gordon Growth Model, what growth rate is implied by the current market valuation of Intel?
What is the price of the stock : Question - A stock pays a dividend of $0.65 quarterly. If the dividend yield is 6.9%, what is the price of the stock
When is a chest x-ray indicated in the case : Do the etiology, diagnosis, and management of a child who is wheezing vary according to the child's age? Why or why not? Which objective of the clinical finding
Which of the equity accounts would be affected directly : An asset having a cost of $200 000 and accumulated depreciation. Which of the equity accounts would be affected directly or indirectly by the revaluation?
How much of the paid is deductible : On December 1, 2020, Lariat Corporation paid a landscaping contractor $60,000 to do landscaping, How much of the $60,000 paid is deductible in 2020 and 2021

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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