What is the present value of its growth opportunities

Assignment Help Financial Management

Reference no: EM131068295

Tri-coat Paints has a current market value of $35 per share with earnings of $2.05. What is the present value of its growth opportunities (PVGO) if the required return is 6%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131068295

Questions Cloud

Combined federal plus state tax bracket : An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9.75% yields, what must municipals offer for the investor to prefer them to corporate bonds?

What is the projected increase in retained earnings : The Cookie Shoppe expects sales of $2,900 next year. The profit margin is 4 percent and the firm has a 41 percent dividend payout ratio. What is the projected increase in retained earnings?

Considering a new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

What is the payback period for the set of cash flows : What is the payback period for the above set of cash flows?

What is the present value of its growth opportunities : Tri-coat Paints has a current market value of $35 per share with earnings of $2.05. What is the present value of its growth opportunities (PVGO) if the required return is 6%?

What is the average accounts receivable figure : Skye Flyer, Inc., has weekly credit sales of $15,900, and the average collection period is 61 days. What is the average accounts receivable figure?

What is the most you would pay for a share of miller : The Miller Milk Company has just come up with a new lactose-free dessert product for people who can't eat or drink ordinary dairy products. Miller recendy paid an annual dividend of S2.50, which will grow with the company. The return on stocks simila..

What must the coupon rate be on merton bonds : Merton Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $957. At this price, the bonds yield 9 percent. Required: What must the coupon rate be on Merton’s bonds?

Types of firms to lower their asset requirements : Companies with relatively high assets to sales ratios require a relatively large amount of new assets for any given increase in sales: hence they have a greater need for external financing. there are currently no alternatives for these types of firms..

User Account

All Pages