Question: Answer EVERY question please. If you don't want to answer every question, then let someone who will answer this. Levi Strauss & Co (LEVI) has
Answer EVERY question please. If you don't want to answer every question, then let someone who will answer this.
Levi Strauss & Co (LEVI) has a current price of $13.40 per share. Analysts estimate that the price per share of LEVI one year from today will be $15. LEVI will pay a dividend of $0.50 one year from today. Currently the risk-free rate is 5%, the market risk premium is 6% and LEVIs Beta is 1.19. Based on this information, how is LEVIs price position relative to fair value?
| Levi is undervalued | ||
| There is not enough information to answer this question | ||
| Levi is overvalued | ||
| Levi is fairly valued |
McDonalds beta is 0.6 and the historical market return is 10%. The risk-free rate is 5.3%. What is McDonalds required rate of return?
| 7.4% | ||
| 13.6% | ||
| 10.1% | ||
| 3.4% |
Apple Inc. (AAPL) has a beta of 1.25 and pays an annual dividend of $6. The risk-free rate is currently 5% and the market risk premium is 12%. What is the intrinsic value of Apple Inc.?
| $20 | ||
| $30 | ||
| $40 | ||
| $10 |
Yum! brands Inc. just paid a dividend of $2 (D0). Their dividends have grown at a rate of 5% every year for the past 20 years and they have a Beta of 1.2. The risk-free rate is 2% and the market risk premium is 6.25%. What is the intrinsic value of this stock?
| $66.81 | ||
| $46.67 | ||
| $57.14 | ||
| $31.92 |
PepsiCos (PEP) income statement shows total revenue of $22.32 Million. Further, PEP has 1.4 Million shares outstanding. Coca-Cola (Pepsis closest competitor) has a price-to-sales ratio of 5.44. What should be the price of PEP?
| $32.01 | ||
| $50.25 | ||
| $68.87 | ||
| $86.73 |
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