What is the market price of a share of stock

Assignment Help Finance Basics
Reference no: EM132813943

1 ) A project has sales of $611,208, cash costs of $338,911, and depreciation expense of $74,209. The tax rate is 34 percent and the discount rate is 14 percent. What amount should be used as the depreciation tax shield when computing the project's operating cash flow?

2) The board of directors is dissatisfied with last year's ROE of 15%. If the profit margin and asset turnover ratio remain unchanged at 8% and 1.25, respectively, by how much must the leverage ratio (i.e., assets/equity) increase to achieve 20% ROE?

3) What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book value of equity of $3,000,000, and a market/book ratio of 3.0?

Reference no: EM132813943

Questions Cloud

The international gold standard : Consider two countries, the U.S. (domestic) and U.K. (foreign), under the international gold standard. The central bank in each country offers a fixed currency
Explain details of the personalized plan of care : Post a description of the patient case from your experiences, observations, and/or clinical practice from the last 5 years. Then, describe factors that might.
Discuss the dynamics of emotional labour : People in customer service experience 'emotional labour' frequently in the work place. Discuss the dynamics of emotional labour
What is the break-even points in units : What is the break-even points in units? Granite Corp. manufactures curling rocks and sells them for $43/each. Variable costs are $23/each
What is the market price of a share of stock : A project has sales of $611,208, cash costs of $338,911, and depreciation expense of $74,209. The tax rate is 34 percent and the discount rate is 14 percent.
How many dollars the cash management system has freed up : $4.60 million per day in collections and $3.60 million per day in disbursements. Calculate how many dollars the cash management system has freed up?
Create the nursing care plans using given details : Critical thinking and Evidence-based practice are both very important parts of being a nurse. Critical thinking as explained by The Foundation for Critical.
Prepare the cash budget and comment on the company financial : Prepare the cash budget and comment on the company financial Situation. The sales forecast is 2000, 1700, i600 and 1500 units for january, Febuary and march
Calculate Atlas turnover ratio for last year : Atlas Company provided the following information for last year: Operating income $92,000. Calculate Atlas's turnover ratio for last year

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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