La Cucaracha Pest Control, Inc.
| Question 23 | 1 / 1 point |
La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm’s operating leverage is 2.78. The firm’s financial leverage was of 2.99. What is the firm’s degree of combined (total) leverage of La Cucaracha Pest Control, Inc. ?
| Expected return on stock using probabilities |
| Question 24 | 1 / 1 point |
Calculate the expected return on stock of Alfa Inc. :
| State of the economy | Probability of the states | Percentage returns |
| Economic recession | 60% | 4.2% |
| Steady economic growth | 14% | 5.3% |
| Boom | Please calculate it | 18.2% |
Round the answers to two decimal places in percentage form. (Write the percentage sign in the “units” box)
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| Gordon Model – value of the stock, expected rate of return; one year holding period |
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