What is an estimated return that shareholders of nab

Assignment Help Corporate Finance
Reference no: EM13669429 , Length: Word count:2500

 

Question1. Subprime mortgage crisis is an example of a financial crisis that affected global markets worldwide. Give another example of a financial crisis in your discussions below. ?

Discuss the possible causes of the financial crisis. ?

Discuss the impact of the financial crisis on financial institutions and businesses elsewhere including your own country. ?

Explain how the financial crisis affected the economies of different countries. (1000 words)

Question2. NAB Ltd current share price is $30 and it has just paid a $1.50 dividend. Dividends of NAB are expected to grow at the rate of 5% per year.

A. What is an estimated return that shareholders of NAB expect to earn?

B. NAB Ltd also has preference share outstanding that pays fixed dividend of $2.30 per share. If preference stock is currently priced at $25, what is the return that preference share holders expect to earn?

C. Five years ago NAB Ltd issued 15 year bond with face value of $1000 and coupon rate of 9%. The price of these bonds is currently is $950. What is NAB's pre-tax and after-tax cost of debt?

D. NAB Ltd has $5000,000 ordinary shares outstanding and 1,500,000 preference shares outstanding, and its equity has a total book value of $50,000,000. Its liability has a book value of $25,000,000. If NAB's ordinary and preference shares are priced as in parts (A) and (B) above, what is the market value of NAB's assets?

E. What is weighted average cost of capital (WACC)

F. If NAB's liability increase by 100%. How the increase in liability will affect WACC of NAB. Explain. Tax rate is 30%.

Verified Expert

Reference no: EM13669429

Identify and research a mutual fund

What is the appropriate benchmark this fund should be compared to?Did the fund do better or worse than the benchmark and if you find that some items are not disclosed, simply

Calculate the fair value of the warrant

Quoit Inc issued preferred stock with detachable common stock warrants. The issue price exceeded the sum of warrants fair value and the preferred stocks par value.

Determine the value of a typical corporate bond

Determine the value of a typical corporate bond. Thus, in this case assignment, you will work through a variety of time value of money problems to illustrate the idea to the

Determine the ecr to support d3 team

Determine the ECR to support D3 Team Travel's goal to generate an additional $50,000 in sales over the next year. Considering its average monthly cash-in-hand, would you rec

Calculate initial public offering value of facebook stock

Evaluate the valuation and method used to determine the Initial Public Offering value of Facebook stock, indicating any miscalculations in the valuation that may have mislea

Computation of the present value of each project

Computation of the present value of each project using annual compounding rate - Evaluate the present value of each project using annual compounding, and report on the relati

Prepare a pro forma combined balance sheet

Prepare a pro forma combined balance sheet using purchase accounting. Note that Pierson pays $180 million in cash for Drew where the cash is obtained by using long term debt

Determine the annual breakeven point in number

Rent and other fixed expenses are $1,750 per month. Assume that the only service performed is the giving of tattoos, whose unit price is $12. Determine the annual breakeven

Reviews

Write a Review

 
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