What is the firms market value per share

Assignment Help Financial Management
Reference no: EM131179926

1) What is the IRR(%) for the following project if its initial after tax cost is 5,000,000 and its is expected to provide after-tax operating cash inflows of 1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and 1,300,000 in year 4?

a) 15.57 b)17.55% c) 13.57% d)15.75% e) none of the above

2) the current annual dividend of a company is $1.25/ share and the firm's required return is 12% dividends are expected to grow at 8% annually for three years, followed by a 5% constant annual growth rate. What is the firm's market value per share?

a) 19.21 b) 12.91 c) 29.11 d) 18.93 e) none of the above

Reference no: EM131179926

Questions Cloud

Components of disbursement float : All of the following are components of disbursement float EXCEPT: Short-term financial planning differs from long-term financial decisions:
Discuss the cost-effectiveness approach : Discuss the cost-effectiveness approach used in project evaluation. What is the difference between cost- effectiveness and weighted cost- effectiveness?
Calculate the shear stress on the outer cylinder wall : A blood solution is tested in a cylindrical Coutte viscosimeter. The apparatus is 0.100 m high. The inner, rotating cylinder has an outer diameter of 40.0 mm and the outer (fixed) cylinder has an inner diameter of 40.4 mm. The rotation speed is 6...
Calculate the joint-ventures annual cash flows from project : Calculate the Joint-Venture's annual cash flows from the project. You may also find it most helpful to have all numbers in $000's. Calculate the Net Present Value of the overall joint venture prior to Drug Revolution's payment of 25.9 million.
What is the firms market value per share : What is the IRR(%) for the following project if its initial after tax cost is 5,000,000 and its is expected to provide after-tax operating cash inflows of 1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and 1,300,000 in year 4? What ..
What is the wavelength of the emitted photon : An electron in hydrogen atom in its ground state absorbs 1.5 times as much energy as the minimum required for it to escape from the atom. What is the wavelength of the emitted photon?
Quantity of computers bought and sold at equilibrium : where P is the price of computers, what is the quantity of computers bought and sold at equilibrium.
What is the rate of return if the cash value : If a person age 25 can buy a $100000 life paid up at age 65 insurance policies for $1200 per year: what is the rate of return if the cash value at age 65 is $167591? what is the rate of return, if the person purchases a $150000 life paid up at age 65..
Different geographic locations within the united states : From the e-Activity, compare the salaries for the same job in two (2) different geographic locations within the United States. Speculate on two (2) economic influences that may impact the pay difference in the two (2) geographic areas you selected..

Reviews

Write a Review

Financial Management Questions & Answers

  Invested in savings account with nominal interest rate

Money is invested in a savings account with a nominal interest rate of 2.4% convertible monthly for three years. The rate of inflation is 1.5% for the first year, 2.8% for the second year, and 3.4% for the third year. Find the percentage of purchasin..

  Discuss the concepts of risk and return

Define and discuss the concepts of risk and return. Also discuss the importance of portfolio diversification and the relationship to risk and return.

  Calculate the cash flow to creditors

Barney Corporation 2013 financial statements showed the following: sales -100000, cost of goods- 48500, other expences-15800, depreceiation expense-8000, interest expense - 12660, taxes - 5300, dividends - 12000, 2013new equity - 6000, net new long t..

  Maximum cost-cost of capital for such risky projects

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.78 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt−equity ratio..

  What should be ranyards current stock price

Ranyard's beta is 1.13, and the last dividend per share paid was $4.21. The market risk premium is estimated to be 7.56%, and the real rate of interest is 2.04%. The liquidity risk premium is 0.7%. Analysts expect the company to grow at a rate of 3.5..

  Find the present value of one credit card to the bank

First National Bank has a credit card department. The average cardholder charges $600 a month, and pays off the entire balance 60 days after the purchase. The cardholders do not pay any interest, but they do pay $25 membership fee, in advance, every ..

  What is the value of alberts growth opportunities

Albert's Company has current earnings of $4.20 per share. The company intends to use part of its earnings for investments that will generate a return of 20%. The cost of capital of Albert's is 15%, and its current stock price is $40. What is the perc..

  Important factor to consider when seeking venture capitalist

Which of the following are important factors to consider when seeking a venture capitalist?

  Which has the characteristics of preferred stock

which has the characteristics of a preferred stock?

  Effective annual rate of interest that billings pays

Assume that Montana Mining, Inc. borrows $5,000,000 for 120 days. The total interest paid is $150,000. What is the APY, or Effective Annual Rate of interest that Billings pays?

  What growth rate is expected for companys stock price

The stock price of Webber Co. is $54.20. Investors require a return of 12 percent on similar stocks. If the company plans to pay a dividend of $3.75 next year, what growth rate is expected for the company’s stock price?

  Existing bond that provides annual coupon payments

Assume the following information for an existing bond that provides annual coupon payments: Par value = $1,000 Coupon rate = 11% Maturity = 4 years Required rate of return by investors = 11% a. What is the present value of the bond? b. If the require..

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