If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years: Year 1 Year 2 Year 3 Year 4 High price $ 98.60 $ 122.20 $ 131.60 $ 148.23 Low price 73.43 89.54 70.22 116.75 EPS 7.88 9.63 10.71 12.10 Earnings are projected to grow at 4 percent over the next year. What is your high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) High target stock price $ What is your low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Low target stock price $

The current market price using cash : Waysafe Inc. consists of two grocery stores. The first store is fairly valued at $60M and the second store, valued at $50M, could be torn down and then the land could be sold for $75M. You quietly purchase 5 percent of this firm at the current market.. |

Find a high and low stock price for the year : If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock p.. |

What isprojects cash flow from liquidation of net operating : You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and w.. |

What is the fund turnover rate : You want to borrow $38,400 and can afford monthly payments of $960 for 48 months, but no more. Assume monthly compounding. What is the highest APR rate you can afford? Use financial calculator. A mutual fund has $225 million dollars in assets, 22 mil.. |

Asset pricing models can be used to estimate cost of equity : Courts recognize that they must discount awards of lost future profits in contract disputes to avoid overcompensating the plaintiff. The required return to equity capital is not directly observable. Different asset pricing models can be used to estim.. |

Articulate the costs and benefits in actual dollar amounts : What challenges did you face when trying to articulate the costs and benefits in actual dollar amounts? As a nurse leader, what can you do to ensure you are making fiscally responsible decisions? |

## What is the total corporate valueWhat is the total corporate value? - What is the firm's WACC?- what would the weighted average cost of capital be at the optimal capital structure? |

## What is its annual amount of couponCorpstein Company bonds have a coupon rate of 7.9 percent, 25 years to maturity, and a current price of $863. The bond has a face value of $1,000. What is its annual amount of coupon? |

## Considering two independent projectsYou are considering two independent (not mutually exclusive) projects both of which have been assigned a discount rate of 15%. Based on the profitability index, what is your recommendation concerning these projects? |

## Binomial model for pricing american put optionsConsider a one-period binomial model for pricing American put options with h = 1, σ = 0.3 where S = 90. Use the fact that option prices are nonnegative and the put-call parity to show that there is no early exercise if r = 0 and δ = 0.08 for any give.. |

## What were the firms operating cash flowThe December 31, 2013 balance sheet of Schism inc. showed long-term debt of $1,395,000 $139,000 in the common stock account and $2,640,000 in the additional paid-in surplus account. The firm’s net capital spending for 2014 was $950,000 and the firm r.. |

## Required rate of return implied by current market priceThe AZ Company currently has $1,000,000 in physical assets that have always generated a steady stream of earnings for the company. The management of the firm has always paid all of its earnings to shareholders as a dividend. What is the required rate.. |

## What profit margin must firm achieveDante Co. wishes to maintain a growth rate of 10.4 percent a year, a debt–equity ratio of 1.0, and a dividend payout ratio of 15 percent. The ratio of total assets to sales is constant at .82. What profit margin must the firm achieve? |

## What annual interest rate-future with quarterly compoudingWhat annual interest rate do you need for an investment to be worth $10,207.73 seven years in the future with quarterly compouding if you deposit $6,500 today? |

## Long-term financing neededAt year-end 2013, Wallace Landscaping total assets were $1.9 million and its accounts payable were $335,000. Sales, which in 2013 were $2.8 million, are expected to increase by 30% in 2014. Total assets and accounts payable are proportional to sales,.. |

## What was the dividend yield for the yearThe common stock of Acadia, Inc., sold for $32.90 at the beginning of the year and $33.12 at the end of the year. During the year, the stock paid $1.10 in dividends. What was the dividend yield for the year? |

## Portfolio rate-what would cause the portfolio interest rateWhen using a portfolio rate, what would cause the portfolio interest rate on a UL to perform better than the market in an extended declining interest rate market and yet would perform worse than the market in an extended increasing interest rate envi.. |

## Assigned discount rateBloomfield Tires has assigned a discount rate of 14.4 percent to a new project that has an initial cost of $229,000 and cash flows of $74,300, $128,700, and $89,500 for Years 1 to 3, respectively. What is the net present value of this project? |

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