Estimated intrinsic per share

Assume that the average firm in Masters Corporation’s industry is expected to grow at a constant rate of 3% and that its dividend yield is 5%. Masters is about as risky as the average firm in the industry and just paid a dividend (D0) of $2.5. Analysts expect that the growth rate of dividends will […]

The post Estimated intrinsic per share first appeared on home work handlers.

A binomial experiment

A laptop manufacturing company has implemented a 2-step process to test the quality of each production batch. In the first step, a technician randomly selects 15 laptops from the batch and determines whether they meet specifications. The batch is considered acceptable provided no more than 1 laptop fails to meet specifications. Otherwise, the entire batch […]

The post A binomial experiment first appeared on home work handlers.

Hypothesis testing

Hypothesis testing is used in business to test assumptions and theories. These assumptions are tested against evidence provided by actual, observed data. A statistical hypothesis is a statement about the value of a population parameter that we are interested in. Hypothesis testing is a process followed to arrive at a decision between 2 competing, mutually […]

The post Hypothesis testing first appeared on home work handlers.

Advanced taxation

Bella is a citizen of the Cayman Islands. Terri is a citizen of Argentina. They both work for the same company. Their jobs required them to travel to the U.S. Originally, they were needed in the U.S. for many months to help build up the company’s U.S. business. Now, they travel to the U.S. less […]

The post Advanced taxation first appeared on home work handlers.