1. Does american express have a classified stock? calculate the intrinsic value of all classes of stock. further, calculate the expected rate of return using gordon Model of the common stock of American Express
2. Frisch Fish Corp expects net income next year to be $593,000. Inventory and accounts receivable will have to be increased by $298,000 to accommodate this sales level. Frisch will pay dividends of $391,000. How much external financing will Frisch Fish need assuming no organically generated increase in liabilities? $76,000 $96,000 $207,000 $116,000.
3. Price Corp. is considering selling to a group of new customers and creating new annual sales of $150,000. 2% will be uncollectible. The collection cost on these accounts is 4% of new sales, the cost of producing and selling is 78% of sales and the firm is in the 32% tax bracket. What is the profit on new sales? $29,966 $16,320 $26,320 $117,000