On January 1, 1991, you are considering the purchase of ABC Company's common share. You have collected the following information on ABC Company:1.Book value for common share on January 1, 1991 is $13per share.2.Predicted net income for 1991 is $2per share and net income is expected to increase by 10% every year through 1995. 3.ABC is expected to pay $0.5dividends per year from 1991 to 1995.4.After 1995, abnormal earnings will grow by 5% per year.5.ABC's beta is1.2. The risk-free rate of return is6.6% and the market risk premium is 7%. You should use the CAPM model to estimate the equity cost of capital for ABC Company. Required:Using the abnormal earnings formula, compute the estimated equity value per share of ABC Company onJanuary 1, 1991.Your answers must show the steps of computations for any credits. Problem 2 (2 points)Use the stock return data of Walmartand Cisco to estimate their betas. The monthly return data is available in Blackboard.

Suppose that real interest rates increase across europe. this development will u. s. net capital outflow at all u. s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.

Which maxim is being neglected in the following conversation? eli: how did you do at the track meet? caleb: i came in second place! eli: congratulations! what was your time? caleb: six minutes, four seconds. the guy who won only beat me by three seconds. eli: really? katie said the winning time was under 6 minutes. caleb: oh, well, he might have beat me by five seconds. a)maxim of quantity b)maxim of quality c)maxim of relevance d)maxim of manner

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u. s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.