User Account

All Pages

What is the total value of ipo

Assignment Help Finance Basics
Reference no: EM132007071

Etna Tech is a company set up by two friends, Larry and Mike. The company's only product is a popular online game called Fisticuffs. Etna Tech will be holding an IPO of 5 million shares tomorrow. Market expectations are high for this IPO. The company is expected to pay $1 per share starting one year from now. The dividends are then expected to grow at a supernormal rate of 30% for three years, before dropping down to 15% for three more years, and then to 5% afterwards. What is the total value of this IPO if the required return for similar issues is 18%?

Reference no: EM132007071

Questions Cloud

Prepare the journal entry to record interest on december : Intermediate Financial Accounting Problem - Prepare the journal entry to record interest on June 30, 2015, using the effective interest method
Explain on how to calculate the bond price : At what price would you expect these bonds would be selling in the market? Explain on how to calculate the bond price.
Conduct a research project concerning performance management : Conduct a research project concerning performance management - how you intend to conduct this investigation
How does area impact the statement of cash flows : Discuss the importance of classifying the activities correctly. How does each area impact the statement of cash flows?
What is the total value of ipo : What is the total value of this IPO if the required return for similar issues is 18%?
Record the purchase of raw materials at standard price : Prepare the journal entry that is needed to record the purchase of raw materials at standard price, and related variance
Explain which country is most like the united states : Pick three individual countries, one in the Middle East, one in Asia, and one in Europe.
What is the component cost of debt : The bonds will mature in 20 years at which time they will have a face value of $1,000. What is the component cost of debt?
Cash flows associated with the depreciation tax saving : What is the depreciation each year and what are the cash flows associated with the depreciation tax saving?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd