Sustainable rate of growth

Assignment Help Finance Basics
Reference no: EM132199224

A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and $648,200 in next year's free cash flow. What value would you place on a share of this firm's stock if you require a 14% rate of return? 135) A) $54.02 B) $52.96 C) $61.58 D) $48.09

Reference no: EM132199224

Questions Cloud

Calculate a? one-year holding period return? : Calculate a? one-year holding period return? (HPR) for the following two investment? alternatives, which investment would you? prefer
Finance capital budgeting projects next year : Justice Corporation expects earnings per share and dividends per share to be $5.00 and $2.50 respectively next year. Justice currently has 6,000,000 shares
Pre-conditions for launching a bsc program : How should the process of BSC start for your CA? What are the pre-conditions for launching a BSC program?
Sources of capital to start and grow a business : How does the business life cycles vary and what are the sources of capital to start and grow a business?
Sustainable rate of growth : A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and $648,200 in next year's free cash flow.
Calculate the annual depreciation allowances : A piece of newly purchased industrial equipment costs $984,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule
Depict cash flows and follows the accrual method : Fall Corporation uses the indirect method to depict cash flows and follows the accrual method for recording income.
Debit to discount on bonds payable : Triple C Corporation issues 600 10-year, 8%, $1,000 bonds dated January 1, 2012 at 96. The bond discount recorded for this transaction would be a
Expected npv and standard deviation of npv : Need the project's expected NPV and standard deviation of NPV.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the correct cross rate

Calculate the correct cross rate and determine whether arbitrage opportunity exists. If so, specify which currency is overvalued or undervalued under the quoted cross rate, and describe how you would conduct the arbitrage

  Calculate the mse and mad for each

Given your data, and this time period, would you prefer to try some other type of forecast, or modify the data in some way? (You must explain your answer for full credit.)

  How do markets react to announcements of security issues

In his Pecking Order Theory, Stewart Myers argues that managers should consider the "cost" of obtaining various types of external financing in selecting.

  Substantial exchange rate risk

What is the business reason for China Noah's potential currency exposure? Does the company really need to subject itself to substantial exchange rate risk? Is the risk "material" to China Noah? Do you think China Noah should hedge?

  Calculate the total year net cash flow

Jefferson Corporation is purchasing equipment with a 10-year life which will increase revenue by $38,000 per year and increase expenses by $21,000 per year.

  Describe the concentration of industry assets

How would you describe the size distribution of American hanks and the concentration of industry assets inside the United States?

  Record the inventory return on given month

Refer to the information in BE6-11, but now assume that Shankar uses a periodic system to record inventory transactions.

  Evaluate the risk and reward proposition for an investor

Evaluate the risk and reward proposition for an investor considering purchasing a government versus corporate bond, indicating the key factors to be considered to determine the investor level of risk tolerance and the impact to his decision

  Capital structure for purnen corporation

The capital structure for Purnen Corporation is given below. Calculate the weighted average cost of capital (WACC). Debt: 10%, 1,500 bonds, 20 years to maturity, selling for 105% of par. The bonds have a $1,000 par value each and make annual paymen..

  What is the company expected stock price

Schnussenberg Corporation just paid a dividend of D1 = $3.22 per share and has a required rate of return of 10.25%.

  Explain debt equity swaps and how they increase activity

List additional factors that deserve consideration in a foreign project analysis but are not relevant for a purely domestic project.

  Is the modified heuristic still time polynomial

Is the modified heuristic still time-polynomial? How can be one determine whether an instance of the modified problem is feasible?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd