Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm’s equity beta is 1.60, the risk-free rate is 2.25 percent, and the market risk premium is 7 percent.           Dividends per share $ 2.10   Return on equity   9.50 % Book value per share $ 17.50       Earnings Cash Flow Sales 2019 value per share $ 5.00   $ 6.60   $ 25.65   Average price multiple   13.10     9.45     2.39   Forecasted growth rate   13.51 %   11.38 %   7.21 %   What is the sustainable growth rate for Beagle Beauties? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Do not include the % sign) exam spreadsheet (8).xlsx

Genetics does not play a part in alcohol use disorder (AUD). We know this because previous research has not shown a difference in AUD concordance rates between monozygotic (identical) and dizygotic (fraternal) twins. 

Southern Fields has an inventory of 838,000 pounds of sugar. The firm placed a partial hedge on this inventory by selling 6 futures contracts at 9.56. The futures contracts are based on 112,000 pounds and are quoted in cents per pound. At the time the firm sold the sugar, the spot rate was 9.63. How much profit did the firm lose because of the hedge? exam spreadsheet (8).xlsx

Nasdaq has which of the following characteristics?trading floorcomputer networkspecialist systemmultiple market makers

The method of valuing a stock based on the present value of the future income derived from that stock is called:

Newcomer Mills is a relatively new firm which will retain all of its earnings for the next four years. Four years from now, the firm expects to pay its first dividend of $.25 a share. After that, it intends to increase the dividend by 4 percent annually. What is the value of this stock today at a discount rate of 12 percent? exam spreadsheet (8).xlsx

The party who serves as a dealer for a few securities on an exchange floor and is obligated to maintain an orderly market for those securities is called a:

Southern Foods just paid an annual dividend of $1.10 a share. Management estimates the dividend will increase by 10 percent a year for the next 4 years. After that, the annual dividend growth rate is estimated at 3.2 percent. The required rate of return is 12 percent. What is the value of this stock today? exam spreadsheet (8).xlsx

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $71, $312, and $86, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index? Note: Do not round intermediate calculations. Round your answer to 5 decimal places. exam spreadsheet (8).xlsx

A financial instrument on which a futures contract is based is called which one of the following?