Reasons of holding large and small inventories by food stores and railways.

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Answer 1

Question

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

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A company currently pays a dividend of $3.6 per share (D0 = $3.6). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.4, the risk-free rate is 8.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Answer 2

Question

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

Answer 6

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Answer 7

Chapter 30, Problem 1PS

Summary Introduction

To discuss: Reasons of holding large and small inventories by food stores and railways.

Answer 8

Expert Solution

Explanation of Solution

The main reason is food stores primarily sell the service of food choices for purchasers on their shelves. So, they hold large inventories. Whereas, railroads earn cash by operative massive fastened assets. So it maintains small inventories.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.

Answer 13

Summary Introduction

To discuss: Reason person X can think that pharmaceutical companies hold more cash and securities.

Answer 14

Expert Solution

Explanation of Solution

Person X views that, the main reason is that pharmaceutical companies are based on research and development engines that needs more funding and cash for discovering new types of drugs and also for the acquisition of intellectual property.