"let's assume that you're thinking about buying stock in west coast electronics. so far in your analysis, you've uncovered the following information: the stock pays annual dividends of $4.82 a share indefinitely. it trades at a p/e of 9.6 times earnings and has a beta of 1.12. in addition, you plan on using a risk-free rate of 5.00% in the capm, along with a market return of 11%. you would like to hold the stock for 3 years, at the end of which time you think eps will be $7.48 a share. given that the stock currently trades at $49.04, use the irr approach to find this security's expected return. now use the dividend valuation model (with constant dividends) to put a price on this stock. does this look like a good investment to you? explain."

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)

At cooly cola, we are testing the appeal of our new diet one cola. in a taste test of 250 randomly chosen cola drinkers, 200 consumers preferred diet one cola to the leading brand. assuming that the sample were large enough, the large-sample 95% confidence interval for the population proportion of cola drinkers that prefer diet one cola would be: