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- A private equity firm is aiming to buy a company. Under private equity ownership, the company will earn an annual cash flow of $10mln up to infinity. The first cash flow is expected next year. The estimated IRR is 13%. What is the investment outlay (in millions) closest to?An investor purchased a stock one year ago for $43.00. It paid an annual cash dividend of $3.37 and is now worth $50.61. What total return did the investor earn? Would the investor have experienced a capital gain? The investor would experience a capital gain in the amount of $?. Round to nearest cent The total return earned by the investor is $?An investor’s portfolio currently is worth K1 million and during the year the investor company at a price of K80 per share and 2000 shares of F Company at K40 per share. The proceeds are used to buy 1 600 shares of I Company at K100 per share.(i) What was the portfolio rate of return?(ii) If the shares of M originally purchased for K70 and those in F were purchased for k35, and if the investor’s tax rate on capital gains income is 20 %, how much extra will the investor owe on this year’s taxes as a result of these transactions?
- The present value of JECK Co.’s expected free cash flows is $100 million. If JECK has $30 million in debt, $6 million in cash, and 2 million shares outstanding, what is its share price?An investor’s portfolio currently is worth K1 million and during the year the investor company at a price of K80 per share and 2000 shares of F Company at K40 per share. The proceeds are used to buy 1 600 shares of I Company at K100 per share. What was the portfolio rate of return? If the shares of M originally purchased for K70 and those in F were purchased for k35, and if the investor’s tax rate on capital gains income is 20 %, how much extra will the investor owe on this year’s taxes as a result of these transactions?You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for $166 per share. You receive a dividend of $2.27 a share. a.What is your total dollar return? b. What are your dividend yield, capital gain yield, and total percentage return? Note: don't use chat gpt.
- An LBO purchases a business for $250,000,000, 80% of which is debt. In 7 years, the LBO sells it for $350,000,000. If the debt principal is reduced to 50% of the original principal, what is the internal rate of return (IRR) of this investment? Multiple Choice 5.71% 12.50% 16.99% 40.00% 25.85%A stock you purchased for $80 has paid out $2.50 in dividends. The stock is now selling for $100. If you were to sell, what would your capital gains yield be?Suppose you have $10,000 in cash to invest. You decide to sell short $5000 worth of Earlham stock and invest the proceeds from your short sale, plus your $10,000 into one-year U.S. Treasury bills earning 5%. At the end of the year, you decide to liquidate your portfolio. Earlham Industries was priced at $40 per share at the beginning of the year. At the end of the year, Earlham Industries paid a dividend of $1 per share and the share price was $50. The return on your portfolio is closest to: 12.25% -6.25% -2.5% 5%
- 2.Suppose you inherited $200,000 and invested it at 6% per year. How much could you withdraw at the end of each of the next 15 years?a. $23,431.83b. $24,764.40c. $17,843.15d. $20,592.553.What would the future value of $100 be after 5 years at 10% compound interest?Select one:a. $161.05b. $127.84c. $134.54d.$151.294. ABC Company will pay a dividend of $3.00 per share in the next 12 months (D1). The required rate of return (ke) is 10% and the constant growth rate is 5%. Compute Price of common stock.a. $60.00b. $100.00c. $42.86d. $70.005. XYZ Company’s preferred stock is selling for $25 a share. If the required return is 12%, determine the dividend value be two years from now.a. $3.76b. $2.39c. $2.50d. $3.00What is the total gain of the company if the mutual fund’s net asset value is at P30 and the fund sells at P35 on a 50,000 sharesYour company has expected future cash flows of $70 million in perpetuity. The company's WACC is 12.8%. The company has $337 million in debt, and $188 million in excess cash, and 12 million shares. What is the share price of the company?