Refuse, Inc. just paid a dividend of $2. Refuse expects dividends to grow at 4% indefinitely The eturn on stocks as risky as Rafuse. Inc. is typicaly around 10% the share of Refus O4 No, because at $20 the stock in overpriced. OB. Yes, because at $20 the stock is overpriced. Oc Yes, because at $20 the stock is underpriced. OD. No, because at $20 the stock is underpriced.
Q: The financial breakeven point of Soil Inc. is P90,000, while the tax rate applicable to the company ...
A: At financial breakeven point, EBIT level is such that net income is zero. EBIT = P 90000 Tax rate = ...
Q: The estimated cost of the long-term investment project is P50 million. The expected dividend on ordi...
A: The cost of ordinary share can be calculated using the Gordon Model. Cost of ordinary share using Go...
Q: 9% b. 20% c. 26% d. 22
A: IRR is a rate at which present value of cash inflows is equal to present value of cashoutflows.
Q: Electric-powered forklift truck Gas-powered forklift truck NPV $ $ IRR %...
A: Net Present Value (NPV) is defined as the value that can be arrived at by subtracting the present va...
Q: Mr. James Lubay working in the United States planned of returning to the Philippines at the end of 2...
A: To Find: Principal in the fund at the end of 2001
Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P 6,...
A: Bond premium The bond premium is the excess paid amount over the par or face value for the bond. It ...
Q: Valuation of assets. Using the information provided in the following table, find the value of each ...
A: Here, To Find: Value of each asset =?
Q: Melinda opened a savings account for her daughter on ? day she depositing $1,000: Each year on her b...
A: Annual deposit (A) = $1000 Number of deposits (n) = 22 r = 9.5%
Q: If money is worth 8% compounded quarter ly, determine tne present value of the following: a. An annu...
A: Discounting is a technique which is used to compute the PV of future cashflows by using an appropria...
Q: For this question the inflation rates are actual inflation levels ( so a 6 month inflation rate incr...
A: Treasury Inflation Protection Securities: Treasury Inflation Protection Securities, or TIPS, in shor...
Q: Find the present value of an annuity P20,000 payable annually for 8 years, with the first payment at...
A: Annual payment (P) = P20,000 Interest rate (r) = 5% Number of annual payment (n) = 8 Years First pa...
Q: How to calculate the accrued interest for a 1000 par bond if the next coupon is payable in 74 days a...
A: Accrued interest refers to the interest amount that shall be paid by investor for purchasing the bod...
Q: Ex. You anticipate a tuition liability of $40,000 per year at the end of 3 and 4 years from now. Wha...
A: The risk of loss in investment due to changes in interest rates is known as interest rate risk. It c...
Q: What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond was original...
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...
Q: If the yield curve in the bond market shows a flat curve, what do you think about the prediction of ...
A: Yield Curve - It is a line on graph withbond yield in Y-axis and Maturity in X-axis. These curves u...
Q: Suppose that you owned 1000 shares of stock in Procter & Gamble (PG). You purchased the shares at a ...
A: Given: Particulars Amount Number of shares 1000 Share price $48.97 Broker charges 1.70%
Q: 9. Implied interest rate and period Consider the case of the following annuities, and the need to co...
A: Present Value is calculated by dividing the future value by the 1+r factor for the given required ra...
Q: 9. In December, The Corner Coffee Spot had an average inventory of $123, 456 and retail sales of $19...
A: Since you have posted multiple questions, we shall be solving the first one for you. In case you wis...
Q: Debit cards allow an individual to transfer funds directly in a checkable account to a merchant with...
A: Debit card transactions involve the transfer of funds from a bank account. The checkable deposit, no...
Q: Question 3 What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond w...
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...
Q: Mrs. Go make deposits that forms a geometric gradient that increases at 6% per month for 1 year. She...
A: Deposit per month is P500 Growth rate of deposits is 6% Interest rate is 12% compounded monthly To...
Q: Asa Khumalo purchased a vehicle to the value of R224987 today and expects to make repayments for the...
A: Mortgage (X) = R 224987 n = 7 years = 84 months r = 12% per annum = 1% per month Let M = Initial mon...
Q: I'm stuck in Question 4
A: Since Question 4 is specifically asked, so the following solution is for Question 4. Solution 4:- Ca...
Q: Krell Industries has a share price of $22.32 today. If Krell is expected to pay a dividend of $1.07 ...
A: Current stock price (P0) = $22.32 Expected dividend (D1) = $1.07 Price after 1 years (P1) = $23.71
Q: annual cash flow f
A: Annual cash flows refer to the income of the company before deducting any interest, taxes, depreciat...
Q: Mrs. Go make deposits that forms a geometric gradient that increases at 6%per month for 1 year. She ...
A: Annuity represents the equal payments made constantly and gradient for annuity shows the constant in...
Q: z is planning to attend college when she graduates from high school four years from now. She has mad...
A: Money deposited in the account grow with the time according to the interest rate and time of money. ...
Q: A clothing company has determined that if the price of a T-shirt is K40, then 150 will be demanded b...
A: When Price (P) = 40, Demand (Q) = 150 When Price (P) = 45, Demand (Q) = 100 Let the price demand equ...
Q: Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equa...
A: Cost of House $1,00,000.00 LTV 80% Buying Cost 5% Selling Cost 8% Annual Growth rate 4.50%
Q: The current price of a stock is £205 and the annual continuously compounding risk-tree rate is 3%. A...
A: Here, Current Price of Stock is £205 Risk Free Rate is 3% Compounding is Continuous Compounding Firs...
Q: Present Values. You can buy property today for $3 million and sell it in 5 years for $4 million. (Yo...
A: Purchase price (P) = $3 million Selling price (S) = $4 million r = 8% n = 5 years
Q: Renejay's income from sales of tocino have been increasing by 10% for 8 years. If the sales in year ...
A: Sales in year 1 = P22,000 Annual increase in sales = 10% Interest rate = 10% Period = 8 Years
Q: cost of capital f
A: The current cost of capital refers to the amount of return which company required in order to achiev...
Q: Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent. Both bonds have 20 years to...
A: Here,
Q: 4. Jones would like to borrow S$4000 for a project. He plans to pay back the loan plus the interest ...
A: In order to find the best alternative, we must calculate the value of the effective annual rate in b...
Q: 1. If the yield to maturity for a two year zero coupon bond is 5.8% and the yield to maturity for a...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise ...
A: The method of comparables means the relevant ratios of industry, peer groups or similar kind of comp...
Q: Mr. Sanchez's new machine has been installed. Based on the contract and warranty, there will be no m...
A: Here, Life of Machine is 16 years Maintenance Cost for first 2 years is $0 Maintenance Cost from 3rd...
Q: n item is 10000, payable in 10 days but if paid in 30 days there will be a P30 discount. Find the ra...
A: Simple interest = Principal * rate* time (n).
Q: 10. Consider the following cash flow series at varying interest rates. Interest rates: Between 0 to ...
A: Interest rate in year n = rn r1 = 5% r2 = 8% r3 = 10% r4 = 6% Cashflow in year n = CFn CF1 = $1000 C...
Q: A company has an ROE of 12% and payouts 44% of its earnings as dividends. It is planning to pay a $...
A: Dividend is the part or share of profits that is being distributed to shareholders of the company. D...
Q: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the...
A: Given Forward dividend = $2.08 1T Target Est = $105.28 Required return = 11.5%
Q: Consider a portfolo consisting of the following three stocks: E The volatility of the market portfol...
A: Beta is used as a measure of systematic risk in the CAPM model. It provides a direct relation betwee...
Q: A family friend has asked your help in analyzing the operations of three anonymous companies operati...
A: The return on investment is a measure which shows the return that a company will earn on its investm...
Q: It is the difference between the present value and the worth of money at some time in the future.
A: Money has the power to earnt interest. A sum of money that you put in your bank's savings account wi...
Q: A bond has a $13,000 face value, a 6-year maturity, and a 3.05% coupon. Find the total of the intere...
A: Face value= $13000 Number of interest payments = 6 Coupon rate = 3.05%
Q: Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 6% compounded mo...
A: it is given that Loan amount - $ 1,000,000 Interest – 6% Payment frequency – 12 – monthly Time – 30 ...
Q: Task 4. Compute the present value of the following single amount: 1. P250,000 in 8 years compounded ...
A: 1) Future value (F) = P 250000 n = 8 years r = 8%
Q: How do disclosure and analysis help users of financial statements assess performa
A: Step 1 Financial statement analysis is a method of examining business finances for choice purposes...
Q: present value is the
A: https://docs.google.com/document/d/19Usy902_lK6tWQ3RgtQiUedGybbYnqlidq6sySnT8YI/edit
missing info- if the share of refuse stock trades for $20 should you buy it?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’ required rate of return in 10 percent, what is the market value of shares? If the required return declines 6 percent, what is the change in the price of stock? Could you not use excel as im not familair with it yet. Just simple equations pleaseA share of Lash Inc.'s common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 8.0%, what is the stock price? (Round your answer to 2 decimal places.) Please work out the problem do not use excel. Thank You.Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’ required rate of return in 10 percent, what is the market value of shares? If the required return declines 6 percent, what is the change in the price of stock? please dont answer in excel, i dont understand it yet
- (please dont answer in excel, i dont understand that yet, please only equations or word problems) Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’ required rate of return in 10 percent, what is the market value of shares? If the required return declines 6 percent, what is the change in the price of stock?Company A distributed a dividend of $ 4 per share last year. If the company is expected to distribute the same amount of dividends in the following years and the least profitability rate investors expect is 10%, what is the real value of the shares of company A? If the stock of this company is currently trading at 30 USD, can the relevant stock be purchased?a) 45 and must be purchasedb) 70.83 and must be purchasedc) 70.83 and should not be boughtd) 40 and should not be bought e) 40 and must be purchased ===================== How much money will be accumulated at the end of the 2nd year in our account where we deposit 700 USD at the beginning of each year with 9% interest?a) 4599,67b) 2750,25c) 1594,67d) 4200,25e) 5381,25 -------------------- How many USD should a person who constantly wants to receive 4500 USD at the end of each year invest in a bank that pays 12.5% interest today?a) 24000b) 40000 c) 10000d) 36000e) 28000Magic Company pays a $2.10 annual cash dividend (D0) and it plans to keep the dividend at $2,10 for the future since no future growth is anticipated. If the stockholders require a rate of return of 12 percent, what is the price of the common stock?
- Blue Co. just paid a P2 per share dividend on its common stock. The dividend is expected to grow at a constant rate of 7% Annually. If the company issues additional stock, it must pay its investment banker a flotation cost of P1 per share. If the current stock sells for P42 each, what is the cost of issuing new external equity? a. 11.51% b. 11.88% c. 12.11% d. 12.22%Weaver Brothers expects to earn $3.50 per share (E1) and has an expected dividend payout ratio of 60%. Its expected constant dividend growth rate is 7.0% and its common stock currently sells for $30 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?Your answer should be between 10.15 and 16.90, rounded to 2 decimal places, with no special characters.Ginger Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, and Treasury bills are yielding 4.7 percent. The most recent stock price for the company is $64. a. Calculate the cost of equity using the DGM method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the cost of equity using the SML method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Nynet, Inc., paid a dividend of $3.92 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 14.5 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.) Current value $Data for all Dixon Corp. problems are the same. Dixon Corp. just paid out a dividend of $4.50 per share of common stock. Analysts expect the dividend to grow by 17% over the coming three years, and then grow steadily at 5% for the foreseeable future after that. Investors require a return of 8% on this stock. The discounted value at the end of year 3 of all dividends to come after year 3 equals: $216.13 $208.12 $259.46 $252.25 $244.10The Down and Out Co. just issued a dividend of $2.71 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $30 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) Hint: In chapter 8 we calculated the stock price as the present value of future dividends. This is a constant growth stock, and you know the price, the last dividend paid, and the growth rate in the dividend. Simply calculate the next dividend to be paid and back-out the required return (discount rate) on the stock. A) 9.78% B)14.8% C)15.58% D)16.35% E)15.03%