What is the total present value of the following series of cash flows, discounted at 10 percent?

A firm's stock is selling for $77. The next annual dividend is expected to be $4.00. The growth rate is 7%. The flotation cost is $8. What is the cost of retained earnings?

A firm is evaluating a project which will cost $10,269 today and provide cash flows in years 1, 2, and 3 of $7,560, $3,286, $3,268 and, respectively. The firm’s discount rate is 8%? (Assume CFs is received at the end of each year). What is the discou..

Private equity companies target, among many others:  Robust and stable cash flow  Low capital expenditure  Quality assets Explain Why? Give example.

What is the Macaulay duration of a 5.2 percent coupon bond with eight years to maturity and a current price of $1,053.10? What is the modified duration?

Recent flooding has damaged the spillway of the state owned Crab Claw Dam near Puke Bay, Oregon, and it must be repaired or replaced. Two alternatives are available: Recent flooding has damaged the spillway of the state owned Crab Claw Dam near Puke ..

A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 10 perce..

XYZ wants to buy a new production machine for $20,000. Projected cash flows (already adjusted) from this investment will be 5,000; 4,000; 6,000; 6,000, and 6,000. The residual value of the machine is 500$, and t he company will receive the IRS ITC fo..

If the price of a fixed factor of production increased by 50%, what effect would this have on the marginal coast schedule facing a firm? a. None, because fixed costs don't afftect marginal costs b. marginal cost would increase by 50%, c. marginal cos..

As an employee, would you prefer to participate in a definedbenefit plan or a definedcontribution pension plan? Explain your answer, being explicit in considering the advantages and disadvantages of each plan, and which are most important to you.

New shares can be sold to net the company $56 per share. Determine the marginal cost of capital schedule and the break points in the schedule for Penguin.

XYZ sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume XYZ did not obtain Canadian dollars until the option was exercised. Also assume that ther..
