Microsoft Corporation reported earnings of $7.34 per share in the most recent 12-month period and has just paid annual dividends per share of $2.24. Earnings are expected to grow at 12% a year for three years, during which period the dividend payout ratio is expected to remain unchanged from its current level. After that period, the earnings growth rate is expected to drop to 6% and the payout ratio is expected to increase to 60% of earnings. The firm has a beta of 0.8 currently, and it is expected to have a beta of 0.7 after it increases its payout ratio. If the term structure of riskfree interest rates is flat at 2.6% and the market risk premium is 8%, what should the price per share of Microsoft be

In most states, a licensee must provide a(n) of any existing agency relationships to all parties

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.