Calculate the current price per share of the stock

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Reference no: EM132208224

Questions -

Q1. At an interest rate of 12%, which of the following sequences of cash flows should you prefer and why?

	Year 1	Year 2	Year 3
Project A	$400	$400	$400
Project B	$180	$420	$600
Project C	$600	$420	$180

Q2. Assume Go Fish, Inc. has about 6.0 million shares outstanding and the stock price is $24.50. Also assume the P/E ratio is about 16.4x. Calculate the approximate market capitalization for Go Fish, Inc.

Q3. A government bond has a face value of 100 euro. a coupon rate of 5.5 percent and matures in six years. The bond pays annual interest payments. Calculate the yield to maturity of the bond (in euros) if the price of the bond is 105 euros.

Q4. Tapped Out is a no-growth firm and has 1.3 million shares outstanding. It expects to earn a constant $11.5 million per year on its assets. If it has no debt, all earnings are paid out as dividends, and the cost of capital is 12.3%, calculate the current price per share of the stock.

Reference no: EM132208224

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