What is the firms market value of equity

Assignment Help Financial Management

Reference no: EM131590782

The following information is available for the Firm:

Net Income is $1,000,000

Outstanding Shares of Common Stock is 500,000 shares

Dividends Paid is $250,000

The Risk Free Rate is 2%

Return on Equity is 20%

The Firms Beta is 1.5

The Return on the Market is 12%

The market value of the Firm’s equity at the beginning of the year is $7.5 Million

What is the firms Market Value of Equity (in Millions of $ rounding to 1 decimal)?

Reference no: EM131590782

Questions Cloud

Define the investigative effort against terrorism : What contrary arguments can be made that this approach may narrow the investigative effort against terrorism, resulting in more missed cases

Cost of capital estimate to leave the decision unchanged : Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

What will be the value of x : Consider the following loop which is an inefficient (at best) attempt to increment count 200 times - What will be the value of x after the following code is exe

Apply the principles of multiple intelligences : If you were to assign multiple intelligences to yourself, what would it be, would you assign yourself more than one area, and why?

What is the firms market value of equity : What is the firms Market Value of Equity (in Millions of $ rounding to 1 decimal)?

Calculate the average binding energy : Photons of blue light are emitted when hydrogen's electron drops from the fifth energy level to a lower energy level. What is the lower energy level?

Prepare and submit a form 1040 for norman and leslie beber : Prepare and submit a Form 1040 for Norman and Leslie Beber for 2014. The Bebers do not donate to the presidential election campaign

Create a chart comparing the above topics with two other pro : The Internet to conduct research and gather statistics on how the law enforcement profession differs from other professions in terms

What are the costs of the massive expansion of information : Business intelligence, knowledge management, and expert systems are powerful tools that allow corporations to analyze huge amounts of data.

User Account

All Pages