Reference no: EM132757735
Assignment: 1. Dominant Conglomerate's preferred stock pays a dividend of $1.75 per quarter. If the price of the stock is $75.00, what is its nominal (not effective) annual expected rate of return?
2. Schnusenberg Corporation just paid a dividend of $1.95 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future. The company's beta is 3.00, the required return on the market is 10.50%, and the risk-free rate is 3.00%. What is the intrinsic value for Schnusenberg's stock?
3. First Innovators, Inc. (FII) is presently enjoying relatively high growth because its latest new product is years ahead of its competition. Management expects earnings and dividends to grow at a rate of 40% for the next 4 years, after which its new product's competition will increase and reduce the growth rate in earnings and dividends to 2%, i.e., g = 2%. The company's last dividend, D0, was $2.75. FII's beta is 1.50, the market risk premium is 5.75%, and the risk-free rate is 3.50%. What is the intrinsic value of FII's common stock?
4. Suppose Yon Sun Corporation's free cash flow during the just-ended (t = 0) year was $150 million, and FCF is expected to grow at a constant rate of 4% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions?
5. Zhdanov, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$15 million (negative), but its FCF at t = 2 will be $30 million. After Year 2, FCF is expected to grow at a constant rate of 3% forever. If the weighted average cost of capital is 16%, what is the firm's value of operations, in millions?
|
How much will you have at the end of the year
: If you invest $1,000 a year for 15 years at 6% annual interest, how much will you have at the end of the 15th year
|
|
Complete the flexible budget performance report
: Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November
|
|
By how much will each divisions income increase
: The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are.
|
|
What kind of loan would you offer to a poultry farmer
: What kind of loan would you offer to a poultry farmer who wants to build his poultry housing for broilers? What would be the appropriate term or maturity
|
|
What is the intrinsic value for schnusenbergs stock
: Schnusenberg Corporation just paid a dividend of $1.95 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future.
|
|
What are the main themes of film
: What are the main themes of this film? What are the political feelings of the time? What did you learn about the Mexican culture through the film?
|
|
What is abc required rate of return using capm
: ABC Company's stock has a beta of 1.95, the risk-free rate is 2.25%, and the market risk premium is 7.00%. What is ABC's required rate of return using CAPM?
|
|
How much money will you invest in stock y
: You have $122,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create.
|
|
What would be the amortization expense at end of first year
: An asset having a four-year service life and a salvage value of $5,000 was acquired for $45,000 cash on June 28. What would be the amortization expense
|