Compute the eps-roe-price and growth rate

Assignment Help Financial Management
Reference no: EM13766779

We want to compute the EPS, ROE, price and growth rate of Bob & Co. It has 1 m shares outstanding and $75m of book value of equity. Bob & Co. expects to sell $20m worth of sales and keeps 10% of its profit. Its profit from operations is $7 million. Furthermore, it has $100m of assets, and its interest is $2 million. Its coe is .12 and its beta is 1.2. Calculate Bob & Co’s price.

Reference no: EM13766779

Questions Cloud

What is the present value-discount rate : Ambrin Corp. expects to receive $2,000 per year for 20 years. What is the present value of this 20 year cash flow? Use an 9% discount rate
What will be the required return on your portfolio : You have been managing a $10 million portfolio that has a beta of 1.4 and a required rate of return of 14%. The current risk free rate is 5.5%. Assume that you will receive another 600,000. If you invest the money in a stock with a beta of 0.75, what..
Calculate the portfolios new beta : Calculate the portfolio’s new beta given the following information. Currently, you hold a fairly diversified portfolio of 50 stocks, each investment is $6,000. The portfolio’s beta is 1.3. After hearing some troubling news concerning one of your secu..
Real risk free rate-what inflation rate is expected : Assume the real risk free rate is 2% and that the maturity risk premium is zero. If a one year Treasury bond yield is 5% and a 2yr Treasury bond yields 7%, what is the 1year interest rate that is expected one year from now. What inflation rate is exp..
Compute the eps-roe-price and growth rate : We want to compute the EPS, ROE, price and growth rate of Bob & Co. It has 1 m shares outstanding and $75m of book value of equity. Bob & Co. expects to sell $20m worth of sales and keeps 10% of its profit. Its profit from operations is $7 million. F..
Global company traded in the capital markets : How do you think that most businesses (such as Dell computers -- starting in a college dorm room to ultimately becoming a global company traded in the capital markets.) are first financed as a start-up company?
Explore vegetable data provided by usda economic resarch : Explore the vegetable data provided by the USDA Economic Research Services regarding per capita use (consumption) and production trends.
Different types of bonds such as treasury-corporate : There are alot of different types of bonds such as treasury, corporate, municipal, and foreign. Do all bonds have a return date?   Legally, The original maturates has a range from 10 to 40 years. What happens after 40 years if the business goes bankr..
Function creates and returns 1d list of final prices : Write a functon def final_price_list(inventory, row, col) that has 3 parameters - 2D list described above, number of rows and number of columns. Function creates and returns 1D list of final prices for all items after discount is applied. Assume t..

Reviews

Write a Review

Financial Management Questions & Answers

  Considered in the fixed charge coverage ratio

Which of the following would not be considered in the fixed charge coverage ratio?

  Money will be in that account at the end of that time period

For the next 12 years, you decide to place $578 in equal year-end deposits into a savings account earning 7.32 percent per year. How much money will be in that account at the end of that time period?

  Face value bonds outstanding

Best Western has $1,000 face value bonds outstanding. These bonds pay interest semi-annually, mature in 10 years, and have a 5 percent coupon. The current price is quoted at 95.5. What is the YTM? %?

  Mature companies with relatively predictable earning

If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? Mature companies with relatively predictable earning

  Entrepreneurs expect pre-tax earnings to increase

Benson, Athavale & Kemper (BAK) started a manufacturing facility in the last century. This firm, profitable since inception produces steering units for the automotive industry. The 3 founders have been averse to debt.

  Suppose that the installation of low-loss thermal windows

Suppose that the installation of low-loss thermal windows is expected to save 450 per year on bills. If you live in your home for 40 years and could earn 6% per year on other investments, how much could you afford to pay now to have the windows insta..

  The weighted average cost of capital for a risky

All else constant, the weighted average cost of capital for a risky, levered firm will decrease if:

  Are all radio shack stores included in the bankruptcy

In February 2015, Radio Shack filed for bankruptcy protection under Chapter 11 of the Bankruptcy Act. Why did the company file under Chapter 11 instead of Chapter 7? Are all Radio Shack stores included in the bankruptcy? How does the company plan to ..

  What price should be set under marginal cost pricing

Assume a clinical laboratory is considering a new test. Here are the key assumptions: annual fixed direct costs = $20,000, annual overhead allocation = $10,000, variable cost per test = $5, and expected volume = 5,000 tests. What price should be set ..

  Evaluate the company''s weights of capital

Evaluate the company's weights of capital (debt, preferred stock and common stock) and estimate the company's before-tax and after-tax component cost of debt.

  Money by investing in common stock

Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 12% and a standard deviation of 26.2%.

  Report the maximum value of the objective function

Firm wants to determine how many units of each of two products (products X and Y) they should produce in order to make the most money. The profit from making a unit of product X is $100 and the profit from making a unit of product Y is $80. Although ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd