Here is a small part of the order book for Mesquite Foods: Bid Ask Price Size Price Size 104.6 100 105.1 200 104.1 200 105.4 200 102.6 400 105.6 300 101.4 300 106.1 400 a. Georgina Sloberg submits a market order to sell 100 shares. What price will she receive? (Round your answer to 1 decimal place.) b. Norman Pilbarra submits a market order to buy 400 shares. What is the maximum price that he will pay? (Round your answer to 1 decimal place.) c. Carlos Ramirez submits a limit bid order at 106.6. Will it execute immediately?
Dividend Valuation
Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.
Dividend Discount Model
Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.
Capital Gains Yield
It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.
Stock Valuation
In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.
Here is a small part of the order book for Mesquite Foods:
| Bid | Ask | ||
| Price | Size | Price | Size |
| 104.6 | 100 | 105.1 | 200 |
| 104.1 | 200 | 105.4 | 200 |
| 102.6 | 400 | 105.6 | 300 |
| 101.4 | 300 | 106.1 | 400 |
a. Georgina Sloberg submits a market order to sell 100 shares. What price will she receive? (Round your answer to 1 decimal place.)
b. Norman Pilbarra submits a market order to buy 400 shares. What is the maximum price that he will pay? (Round your answer to 1 decimal place.)
c. Carlos Ramirez submits a limit bid order at 106.6. Will it execute immediately?
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