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The news supplement assignments posted on Blackboard provided articles and questions related to news articles that students were assigned to research. Which of the following
The news supplement assignments posted on Blackboard provided articles and questions related to news articles that students were assigned to research. Which of the following best reflects observations from the article related to consideration of share price in making investment decisions O A. Never invest in a company with a share price higher than $1,000 per share O B. Companies with prices per share in excess of the $500 per share threshold generally are poor investments as there is less room for appreciation O c. Companies with prices per share in excess of the $500 per share threshold generally are the best investments as the price is an indicator of past and prospective success OD. The share price on its own carries virtually no useful information. QUESTION 4 4 points Save Answer Select the best answer from those options listed below. Using the Gordon Growth model and the cash flows in year zero to calculate the value of the total enterprise value of a reporting unit having the following characteristics Net cash flow to the total enterprise (year zero) = $450,000 Market value of debt = $1,000,000 Cost of equity = 34% Cost of debt = 9% WACC = 24% Expected long-term stabilized revenue growth rate = 7% Expected long-term stabilized total enterprise cash flow growth rate = 4% Expected long-term stabilized units sold growth = 9% Expected long-term stabilized equity cash flow growth rate = 5% O A. $4,038,462 O B. $2,832,353 O C. $3,340,000 O D. $2,486,842 O E. $2,340,000
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