Managerial finance

Quest Financial services balance sheets report $200 million in total debt, $100 million in short-term investments, and $30 million in preferred stock. Quest has 10 million shares of common stock outstanding. A financial analyst estimated that Quest’s value of operations is $1000 million. What is the analyst’s estimate of the intrinsic stock price per share?

Question 2

Lincoln Incorporated is expected to pay a $4.5 per share dividend at the end of this year (i.e., D1 = $4.50). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock is, rs, is 12%. What is the estimated value per share of Boehm stock?

Question 3

Assume that the average firm in Masters Corporation’s industry is expected to grow at a constant rate of 3% and that its dividend yield is 5%. Masters is about as risky as the average firm in the industry and just paid a dividend (D0) of $2.5. Analysts expect that the growth rate of dividends will be 25% during the first year (g0,1 = 25%) and 10% during the second year (g1,2 = 10%). After Year 2, dividend growth will be constant at 5%. What is the required rate of return on Masters’s stock? What is the estimated intrinsic per share?

 

Sample Solution

t has been argued that Automated Facial Recognition is the next big technology advancement to hit the public scene. It also has been said that the introduction of the Automated Facial Recognition will strengthen the security at banks and airports but a selected few say the introduction of that technology will be inaccurate. They also touched on the fact that the introduction of Automated Facial Recognition will be biased and based on certain individuals based on their ethnicity. I will be researching what Automated Facial Recognition is and its pros and cons. Automated face recognition is a type of software which is able to single out a specific person in a digital image by spotting and finding features from their face. It is capable of verifying a person from an image which is in a digital format, this is done by using selected facial features from a digital image from a database on its system. Facial recognition systems are mostly used for security reasons but they are now being introduced into an array of softwares. An example of facial recognition is the Microsoft Kinect, it uses facial recognition system to differentiate between players, it can also monitor the movements the players make during the process of gaming. Face recognition systems are based on face prints which are in numerical codes. It finds 80 nodal points on the individual\’s face, the face print identifies the length and width of the jawline, the shape of the cheekbones or the spacing between the eyes. The faceprints can instantly and precisely pinpoint an individual if the individual fits the description inputted into the system. Nonetheless, if the described individuals face has partially been concealed with facial hair or even a scar on the face, the system will fail to recognise the person. some social media platforms like Facebook use Automated Facial recognition to aide in image tagging. Some phone cameras too have the abilities to recognise and focus on the face when taking selfies. Snapchat has built its software mainly on facial recognition, for its filter to work it needs to identify the user\’s face and apply the filter respectively. Some billboards have been integrated with the software to identify the gender, average age and race of observers to convey targeted adverts. Automated Facial Recognition is becoming an everyday technology which begs the question whether people will remain unidentified in the coming future. Artificial intelligence which detects faces are real and showing up in airports, billboards, malls and even on our smartphones. The question still stands. Who is defending us from Big Brother from infringing on our privacy and sniffing out our every move. Though automated facial recognition systems have a problem of recognizing faces in dimmed light or poor quality photos, softwares have been developed to capture the face of an individual and create a 3-dimension model of it. The software will rotate the image around until it identifies the individual the face belongs to.

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