User Account

All Pages

Forever for valuing the opportunity

Assignment Help Finance Basics
Reference no: EM132234842

A company generates $90,159.00 in cash flow per year. If investors want a 8.00% annual return to buy the company, how much are they willing to pay? Let's assume the company will last forever for valuing the opportunity.

Reference no: EM132234842

Questions Cloud

What is the growth rate : The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?
What is the expected year-end dividend : The dividend is expected to grow at a constant rate of 6.9% per year. What is the expected year-end dividend, D1?
What is the required rate of return on stock : What is the required rate of return on this stock? That is, solve for r.
Insufficient training-job placement problem : Root Cause of HR Problems? Missing the Recruitment & Operation Basics, Insufficient Training, Job Placement Problem.
Forever for valuing the opportunity : How much are they willing to pay? Let's assume the company will last forever for valuing the opportunity.
What is the expected value of this stock five years : The required return is 16.6 percent and the growth rate is 3.5 percent. What is the expected value of this stock five years from now?
Team development and empowerment strategies : Team Development and Empowerment Strategies. Managing in the Global Environment.
What is the present value of the cash? flows : If 8 percent is the discount? rate, what is the present value of this stream of cash? flows? If 16 percent is the discount? rate, what is the present value
Find the probability that a household spent : During 2016, 61.3% of U.S. households purchased ground coffee. Find the probability that a household spent less than $275.00 on ground coffee.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Determine the years to maturity

My real risk-free rate is 3.50 percent, average future inflation rate is 2.25 percent, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t).

  Weekly simple discount rate

How many weeks would it take to increase the debt of a simple discount loan by 80% if the weekly simple discount rate is 1.7%?

  Tommie harris is considering an investment that pays 65

1.tommie harris is considering an investment that pays 6.5 percent annually. how much must he invest today such that he

  Determine temperature at which the treatment was carried out

An FCC iron-carbon alloy initially containing 0.10 wt% C is carburized at an elevated temperature and in an atmosphere wherein the surface carbon concentration.

  What should be the current market value of the following

what should be the current market value of the following bond? hint use an appropriate financial calculation. coupon

  Calculate the price of the bond

Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%.

  Discuss how the economic crisis of 2008 impacted

Discuss how the economic crisis of 2008 impacted the findings in the 2009 Crime Report.

  Calculations of risk neutral option pricing approach

So why is that the case and how is risk-neutral assumption greatly simplifies the calculations of risk neutral option pricing approach?

  The dividend is expected to grow at some constant rate g

mcdonnell manufacturing is expected to pay a dividend of 1.50 per share at the end of the year d1 1.50. the stock

  What is the remaining maturity of these bonds

Sure Tea Co. has issued 7.6% annual coupon bonds that are now selling at a yield to maturity of 9.1% and current yield of 9.0246%. What is the remaining maturity of these bonds? (Do not round intermediate calculations. Round your answer to 2 decim..

  Method of communication for individuals

Social networking is a popular method of communication for individuals, businesses, and organizations of all kinds. Conduct some research online

  What is the weighted average cost

People's bank will lend 2,450,000 and wants 11% interest on the loan. If all of these interest rates are after-tax, what is the weighted average cost of capital for this project.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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