1. What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions?
2. Stem Corporation received confirmation that all its PSE listing requirements were in order, and that it may proceed to issue its stock. The company plans to raise P500 million on the stock issue. On what market do you expect this stock to be traded? Would this transaction take place on the
3. Over the past 100 years, the level of government regulation of financial institutions and markets has ebbed and flowed or, as some economists might argue, has ebbed and flooded. Although the laws and regulatory agencies created by the government have various defined and not-so-well defined goals, what might you argue is the single biggest benefit of government regulation?
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- D3)arrow_forwardGive me accurate answerarrow_forwardMiller's Hardware recently paid $1.21 per share in dividends. The company currently has excess cash and would like to distribute an additional $.35 a share to its shareholders. However, the company is concerned about increasing the dividend by that amount as it will not be able to afford a similar increase in the future and doesn't want to lower the dividend once it has been raised. Which one of the following is probably the best suggestion for distributing the $.35 per share? Increase the regular dividend by $.12 and pay an extra cash dividend of $23 Pay an extra cash dividend of $.35 per share Pay a special dividend of $.35 per share Pay a liquidating dividend of $.35 per share Increase the regular dividend by $.12 and pay a special dividend of $.23arrow_forward
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- Explain well with proper answer.arrow_forwardI was able to insert the numbers. I am having a hard time of explaining whats going on. Please explain each section to me and what it representing. Please explain cash div/share and dividend yield to me for understanding. From what I see, since the stock price is lower in 2022, they have more shares outstanding and more assests available for the stockholders. In 2022, is the stock market undervauled and that is the reason they have so many shares?arrow_forwardAn investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P /E ratio of 11. Stock Y has a market capitalization of $62 billion but does not currentlypay a dividend. StockY has a P /E ratio of 39. Stock Z, a housing industry company, has a market capitalization of $800 million and a P /E of 18.a.Classify these stocks according to their market capitalizations.b.Which of the three would you classify as a growth stock? Why?c.Which stock would be most appropriate for an aggressive investor?d.Which stock would be most appropriate for someone seeking a combination of safety and earnings?arrow_forward
- Helparrow_forwardPlease provide the correct solution. Previously it has been partially incorrect, so this is a repost. Please double-check the yes or no question and the calculations. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $5.00000 dividend at that time (D₃ = $5.00000) and believes that the dividend will grow by 26.00000% for the following two years (D₄ and D₅). However, after the fifth year, she expects Goodwin’s dividend to grow at a constant rate of 4.26000% per year. Goodwin’s required return is 14.20000%. Fill in the following chart to determine Goodwin’s horizon value at the horizon date (when constant growth begins) and the current intrinsic value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to…arrow_forwardThe analysis that we have to provide is as follows: Review the specifics of the IPO, including underwriting spread and other expenses. Consider the concept of underpricing and a higher than normal first day spike in stock price. What does this mean for the issuing company? What does this mean for the underwriter? The Mini Case we have to go off of is: Mutt.Com was founded in 2015 by two graduates of the University of Wisconsin with help from Georgina Sloberg, who had built up an enviable reputation for backing new start-up businesses. Mutt.Com's user-friendly system was designed to find buyers for unwanted pets. Within 3 years, the company was generating revenues of $3.4 million a year and, despite racking up sizable losses, was regarded by investors as one of the hottest new e-commerce businesses. Therefore, the news that the company was preparing to go public generated considerable excitement. The company's entire equity capital of 1.5 million shares was owned by the two founders…arrow_forward
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