What is general industries expected current share price

Assignment Help Financial Econometrics
Reference no: EM13335232

general industries is expected to generate $22 million, $26 million, $29 million, $30 million, and $32 million in free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 3% per year. If the weighted average cost of capital is 8%, and General Industries has cash of $10 million, debt of $40 million, and $80 million shares outstanding, what is General Industries' expected current share price?

Reference no: EM13335232

Questions Cloud

What should be average beta of new stocks added to portfolio : Assume that the risk free rate is 4.5% and that the market risk premium is 5.5%. The manager expects to receive an additional $5,000,000 in funds soon.
Brazils popluation will double in about : Over the past 50 years , Brazils population growth rate has average about 2.3 percent. According to the rule of 70, Brazils popluation will double in about ?
Write a function called stream-map : Write a function that produces a stream of positive prime numbers . Use that stream to create a list of the product of all pairs of consecutive prime numbers up to a given value.
Is the value of intermediate goods and services included : Why must the total value of expenditures in the economy be equal to total income? Is the value of intermediate goods and services included in GDP? Explain.
What is general industries expected current share price : general industries is expected to generate $22 million, $26 million, $29 million, $30 million, and $32 million in free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 3% per year.
Find the minimum power rating of the car : An electric car accelerates for 11 s by drawing energy from its 270-V battery pack. Find the minimum power rating of the car
Determine what is the companys wacc of par : The first bond issue has a face value of $85 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $50 million, has an 8 percent coupon, and sells for 108 percent of par.
Find the magnitude and size of the point charge : A conducting spherical shell with a total uniformly distributed charge of -4Q on the combination of inner and outer surfaces has a point charge at the center of the shell
Calculate the net present value of this project to company : Timo Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $144,980 and have an estimated useful life of 9 years. It believes it can sell the exhibit for $72,400 at that time.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  How should the fed-fdic and occ economists respond

The bank officials are concerned about the on-going shrinkage of bank assets as a share of total assets of financial institutions in the United States. In the late 1990s, assets of commercial banks as a percentage of total assets

  How much can withdraw each month from the account

To do this, you will invest $830 a month in a stock account and $430 a month in a bond account. The return of the stock account is expected to be 10.3 percent, and the bond account will pay 6.3 percent.

  What is correlation coefficient between returns of two stock

The standard deviation of Einstein is 0.26, and the standard deviation of Bohr is 0.37. What is the correlation coefficient between the returns of the two stocks

  What is the amount of scholarship hal should include

For each of the following situations, indicate how much the taxpayer is required to include in gross income: a. Steve was awarded a $5,000 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.

  How mamy years will withdrawal take too exhaust aunts funds

Your Aunt Ruth has 450,000 invested at 6.5% and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately.

  What is the expected value of a prize in the game

iN A GAME OF CHANCE, the probability of winning a 50 dollar is 40 percent, and the probability of losing a 50 dollar prize is 60 percent, what is the expected value of a prize in the game

  How to earn a 9 percent annual return compounded monthly

If you can earn a 9 percent annual return compounded monthly, you have to save each month. If you wait 10 years before you begin your deposits, you will then have to save each month.

  Determine is the ytc less than or more than the ytm

ABC has a twenty year bond that has just been issued with an 8% coupon rate. It pays interest semiannually and has a par value of $1000. It may be called in five years at a price of $1040.

  Prepare entries for the purchase and two subsequent payments

The remainder was paid within the 30-day term. At the end of the annual accounting period, December 31, 2010, 90% of the merchandise had been sold and 10% remained in inventory. The company uses a periodic system.

  How much money must have at age 65 to make with drawal

An individual is currently 30 years old and she is planning her financial needs upon retirement. She will retire at age 65 (exactly 35 years from now) and she plans on funding 20 years of retirement with her investments.

  Determine what was the annual increase in selling price

Assume that in January 2010, the average house price in a particular area was $278,400. In January 2000, the average price was $195,300.

  What annual contributes to the retirement fund will allow

during the period before retirement you can earn 8% annually, while after retirement you can earn 10% on your money. What annual contributes to the retirement fund will allow you to recieve the $12,000 annuity

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