Manufactures smartphone components including for iphone

Assignment Help Financial Management

Reference no: EM132047055

Berger Corporation manufactures smartphone components including for iphone. Berger’s most recent operating performance reported EPS of $5 and paid a dividend of $3. Although the most recent performance appears impressive Berger’s stock price has been flat. Senior Management believes that the key to a higher stock price is to reinvest more of current earnings into the company’s including capital projects. Berger is an all equity company that has a market beta of 1, along with a risk free return of 4% and the market risk premium is estimated at 8%. In addition, Berger has a ROA of .12. Do you agree with Senior Management? You must support your answer.

Reference no: EM132047055

Questions Cloud

What is return to the bank on these loans : What is the return to the bank on these loans? If the bank would like to increase their return, what could they do?

Should some types be allowed while other types are not : Consider the types of Cloning. Should all types be ethically/morally/legally permissible? Should some types be allowed, while other types are not?

How many hours would jamie need to work to equal lisa : Lisa earns $8.10 an hour and worked 40 hours. Jamie earns $10.80 an hour. How many hours would Jamie need to work to equal Lisa's earnings over 40 hours?

What are the new coordinates : A triangle in the coordinate plane has vertices of (2,6), (-4, -4), and (0,-6). When the triangle is dilated with a scale factor of 1/2.

Manufactures smartphone components including for iphone : Berger Corporation manufactures smartphone components including for iphone.

Set up t accounts for merchandise inventory : Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustments for Merchandise Inventory

Which special populations are most affected and why : If left untreated, what might be some of the more serious long term and detrimental effects this might have on your body?

What is the company total value and value of venz equity : What is the company’s total value. What is the value of Venz’s equity.

How much does the person need to deposit in account : How much does the person need to deposit in each account in order to reach the goal?

User Account

All Pages