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Question 1
Assuming a second round in year 2 of $8,000,000 with a 40% return. What is the price per share at the 2nd round? Round it to the nearest whole number.
Question 2
Assuming a second round in year 2 of $8,000,000 with a 40% return. What is the pre-money valuation at the 2nd round? Round by the nearest whole number, no decimal points.
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- What will price be in 1 year? c. What do you expect to happen to price in the following year? (Round your dollar value to 2 decimal places.) d. What is your estimate of DEQS’s intrinsic value per share if you expected DEQS to pay out only 10% of earnings starting in year 6? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Suppose a firm is operating in 2 periods. The shareholders are expecting to receive $100,000 economic profits (per share of stock) in period 1 and $120,000 (per share of stock) in period 2. Given the required rate of return is the same in both period, which 0.05 and the real option value is $50,000. What is the current value of a share of stock? (Report your answer with 2 decimal points)Under peso-cost averaging, an investor will purchase P6,000 worth of stock each year for three years. The stock price is P40 in year 1, P30 in year 2 and P48 in year 3. A. What is the share purchased in every year? B. Compute the average price per share. C. Compute the average cost per share.
- Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $46.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $50.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $58.50 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)A firm uses a target payout ratio of 0.49. In recent years, its earnings per share (EPS) has been $4.22 and using that EPS, it has just paid its annual dividend of $2.07 per share. One year from now, the firm expects its EPS to increase to $4.97 but does not believe that the entire increase in its earnings is permanent. It intends to select its dividend amount according to the Lintner model, using a speed of adjustment coefficient of 0.62. Question content area bottom Part 1 Part A: What dividend will the firm issue in one year?Dividend in one year: $enter your response here per share. (Enter your answer rounded to two decimal places and use the rounded value in Part B).Part B: If the EPS remains at its higher value for an additional year, what dividend will the firm issue in two years?Dividend in two years: $enter your response here per share. (Enter your answer rounded to two decimal places).Under peso-cost averaging, an investor will purchase P26,500 worth of stock each year for 5 years. The stock price is P40 in year 1, and is 5% increasing for the next 3 years except for the 5th year that the stock price decreases by 10%. A. What is the share purchased in every year? B. Compute the average price per share. C. Compute the average cost per share
- Need help with answers for B and C please The Evanec Company's next expected dividend, D1, is $3.50; its growth rate is 5%; and its common stock now sells for $38.00. New stock (external equity) can be sold to net $34.20 per share. A) What is Evanec's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places.rs = % B) What is Evanec's percentage flotation cost, F? Round your answer to two decimal places.F = % C) What is Evanec's cost of new common stock, re? Do not round intermediate calculations. Round your answer to two decimal places. re = %QUESTION 1 Dixon Corp’s preferred stock does not mature (it is a “perpetual preferred”). Each share of preferred stock pays a fixed dividend of $5.15 per year, and is currently selling for $62. Estimate Dixon’s marginal cost of preferred equity. Dixon faces a marginal tax rate of 30%. 10.10% 12.04% 5.81% 7.07% 8.31% QUESTION 2 Check the information provided for Terra Corp. The project’s cash flow for the last year is expected to be: $143,700 $123,700 $146,200 $149,200 $172,200 QUESTION 3 Dixon Corp has 6% coupon bonds outstanding that have a remaining maturity of 12 years. These bonds pay interest semiannually, and are currently selling for $1080 per $1000 face value. If Dixon issues new debt, it plans to sell bonds with a maturity of 12 years. Estimate Dixon's marginal pre-tax cost of debt. Dixon faces a marginal tax rate of 30%. 5.10% 4.15%…Suppose rRF = 6%, rM = 12%, and bi = 1.1. What is ri, the required rate of return on Stock i? Round your answer to one decimal place. % 1. Now suppose rRF increases to 7%. The slope of the SML remains constant. How would this affect rM and ri? rM will remain the same and ri will increase by 1 percentage point. rM will increase by 1 percentage point and ri will remain the same. Both rM and ri will decrease by 1 percentage point. Both rM and ri will remain the same. Both rM and ri will increase by 1 percentage point. 2. Now suppose rRF decreases to 5%. The slope of the SML remains constant. How would this affect rM and ri? rM will remain the same and ri will decrease by 1 percentage point. Both rM and ri will increase by 1 percentage point. Both rM and ri will remain the same. Both rM and ri will decrease by 1 percentage point. rM will decrease by 1 percentage point and ri will remain the same. 1. Now assume that rRF remains at 6%, but rM increases to 13%.…
- 12)Under dollar-cost averaging (cedi cost averaging), an investor will purchase GHS6,000 worth of stock each year for three years. The stock price is GHS40 in year 1, GHS30 in year 2, and GHS48 in year 3. i)Compute the average price per share. ii) Compute the average cost per share. Explain why the average cost is less than the average priceplease answer c to d The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 24% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 19% per year. a. What is your estimate of the intrinsic value of a share of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. What do you expect its price to be one year from now? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) d-1. What is the implied capital gain? (Do not round intermediate calculations. Round your final answer to 1 decimal place.) d-2. Is the implied capital gain consistent with your estimate of the dividend yield and the…Calculation of gL and EPS Spencer Suppliess stock is currently selling for 60 a share. The firm is expected to earn 5.40 per share this year and to pay a year-end dividend of 3.60. a. If investors require a 9% return, what rate of growth must be expected for Spencer? b. If Spencer reinvests earnings in projects with average returns equal to the stocks expected rate of return, then what will be next years EPS? [Hint: gL = ROE Retention ratio.)
