Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The risk-free rate of return is 6.0%, the expected rate of return on the market portfolio is 18%, and the stock of Xyrong Corporation has a beta coefficient of 1.7. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced were $18 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 24% per year on all reinvested earnings forever.
a. What is the intrinsic value of a share of Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Intrinsic value $
b-1. If the market price of a share is currently $69, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price $
b-2. What is your expected one-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Expected one-year holding-period return %
Imprudential, Inc. has an unfunded pension liability of $582 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.5 ..
Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks
If the Friendly National Bank experiences a required reserves deficit, what actions can it take to be in compliance with the existing required reserves ratio?
The company's cost of capital is 10 percent, and it can get an unlimited amount of capital at that cost. What are the NPVs of both projects? What is the payback period for each? What is the IRR of both projects? Which project would you accept?
What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula a..
Build a Strategic Plan for Publix supermarkets. Include environmental and organizational considerations along with key findings from analyses and final strategic suggestions. Strategic choices should be based on intuition and facts. Should have clear..
Design of a Cash Concentration System by Stone and Hill - Comment on the major issues involved in the structuring and implementation of an efficient cash collection system.
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.25P, and the marginal cost of production is $160. Determine the optimal number of units to put i..
What is the present value of a 7-year annuity of $1,000 per period in which payments come at the beginning of each period? The interest rate is 13 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula an..
What is the minimum number of year-end deposits that have to be made before the total value of the deposits is at least eight times greater than the value of a single year-end deposit if the interest rate is 10%?
Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of equity is 11 percent, and its cost of debt is 7.5 percent. The tax rate is 40 percent. What is the company’s debt–equity ratio?
To expand his portolio, Jorge recently purchased 275 shares of common stock in the Wellington Industries. The current market price of Wellington's common stock is $22.25 per share. Jorge's total wealth from his investment in Wellington Industries is:..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd