Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next 5 years. Its latest EPS was $16, all of which was reinvested in the company. The firm’s expected ROE for the next 5 years is 19% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm’s ROE on new investments is expected to fall to 14%, and the company is expected to start paying out 20% of its earnings in cash dividends, which it will continue to do forever after. DEQS’s market capitalization rate is 24% per year.
1. What is your estimate of DEQS’s intrinsic value per share?
The Wall Street Journal reports that the current rate on 9-year Treasury bonds is 5.90 percent, the rate on 16-year Treasury bonds is 6.30 percent, and the rate on a 16-year corporate bond issued by MHM Corp. is 7.45 percent. If the default risk prem..
A company had EPS of $5 last year and a PO ratio of 50%. The company's stock price, earnings, and dividends are all growing at a constant rate of 4%. If the required return on the company's stock is 8%, what is the current price per share?
Why does a bankrupt firm under Chapter 11 generally require its bondholders to convert their debt to equity of the company after the reorganization?
Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. Calculate the direct labor efficiency variance for September. If the variance is favorable,..
The annualized 6-month spot rate is 4% and the annualized 12-month spot rate is 6%. The annualized forward rate from the end of 6th month to the end of 12th month is 10%. Develop an arbitrage strategy using the spot rates and the forward rate.
What is Financial statement fraud - what is revenue recognition fraud and what is off-balance sheet accounting fraud?
Language is an important part of culture. How can participating in the language learning program offered by the European Union help business people better understand foreign cultures?
Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 –$ 64,000 –$ 74,000 1 25,000 17,000 2 32,000 20,000 3 23,000 30,000 4 10,000 234,000 What is the payback period for both..
Your client invests 70% in your risky fund and 30% in T-Bills. What is the expected return and standard deviation of your client’s portfolio? Suppose your risky portfolio includes the following stocks: Stock A: 25%; Stock B: 32%; Stock C: 43%. What a..
What are some ways in which a firm can improve its cash position - what are some ways that a firm can harm its cash position?
A 3-year treasury note has a face value of $1000 and annual coupon of 8%. The 1-year spot rate is r1 = 2%, and the 1-year forward rates for the next two years are r2 = 4% and r3 = 5%. Compute the price of the T-note. Calculate the 2- and 3-year spot ..
You would like to have $47,436 for the down payment on a house you plan to buy five years after you graduate. If your investments earn 4.9% APR compounded monthly, how much do you have to invest each month, starting next month, to meet your investmen..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd