User Account

All Pages

Calculate the intrinsic value of a xyz share

Assignment Help Financial Accounting
Reference no: EM132533122

XYZ Ltd's last annual earnings were Rs. 10 per share and dividends were just paid out. 40% of earnings are paid out as dividends and this ratio is expected to be maintained in the future. XYZ has a beta of 1.2. The risk free rate is 8% and the expected return on the market portfolio is 15%. You expect XYZ to earn a ROE of 20% per year on all reinvested earnings.

Question 1: Calculate the intrinsic value of a XYZ share

Reference no: EM132533122

Questions Cloud

Find the present value of received at the start : Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000.
Measure different aspects of leadership directions : Measure Different aspects of leadership directions - Write the introduction, abstract, discussion, recommendations, and conclusion
Business environment to business environment : Discuss the purpose of IT governance. How does IT governance vary from industry to industry or business environment to business environment?
Basic principles that underlie contract law : Eisenberg, M.A. (2005) states that among the basic principles that underlie contract law are the bargaining principle and the indifference principle. please exp
Calculate the intrinsic value of a xyz share : Calculate the intrinsic value of a XYZ share. XYZ Ltd's last annual earnings were Rs. 10 per share and dividends were just paid out. 40% of earnings
Distinguish an advertisement : By reference to the [1893] 1 QB 256, and any other decision you may consider relevant, explain what circumstances may distinguish an advertisement
What is the amount of cash paid for the purchase : Inventory has increased by $8000 and creditors have decreased by $15 000 what is the amount of cash paid for the purchase of goods for resale?
System development life cycle : Explain how can a IT related start up organization went into development covering the following topics across the chapters discussed.
Write report six pages about idealism school oh philosophy : Write report six pages about "idealism school oh philosophy" with references Try to cover all points

Reviews

Write a Review

Financial Accounting Questions & Answers

  Milk produced from a socially optimal perspective

Milk production requires the use of millions of cows. Cows release methane gas and waste piles that can cause major pollution problems. Is there too little, too much or the correct amount of milk produced from a socially optimal perspective?

  What collateral or security will the company provide

What collateral or security will the company provide to make sure that any loan i make will be repaid?

  Compute nobles break-even point in sales dollars

Using Excel worksheet, compute Noble's break-even point in sales dollars for next year assuming the agents' commission rate remains unchanged at 12%

  Landscaping purchased a tractor

Abbott Landscaping purchased a tractor at a cost of $40,000 and sold it three years later for $20,300. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,500 residual value.

  Investment of cash by rickie james

Which of the following reflects the investment of cash by Rickie James in her sole proprietorship and Which of the following reflects payment of a utilities bill from the power company?

  What is the value of the bequest immediately

What is the value of the bequest immediately after the first payment is? made? What is? today's value of the? bequest? A rich relative has bequeathed

  Question in the fiscal year 2013 the voters of the city of

question in the fiscal year 2013 the voters of the city of bingham approved the issuance of 3 tax supported bonds in

  What is the interest rate

Crimson Tide borrows $15,000 on September 1, 2012. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 10%. What is the interest rate?

  Fractions in real life

Describe a real-world problem you have encountered, in either your personal or professional life, in which you needed to use fractions or decimals to solve the problem.

  What amount of fica taxes does kyle owe for the year

Kyle worked as a free-lance software engineer for the first three months of 2016. During that time, he earned $62,000 of self-employment income. On April 1, 2016, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle..

  What would the journal entry be for a merchandising business

What would the journal entry be for a merchandising business using a period inventory method for the following Vendor took 2 composters for personal use $200.00

  Prepare flexible budget for august in contribution format

Suppose actual sales demand increases to 700,000 units for August; assume the units are within the relevant range. Prepare the flexible budget for August in contribution format.

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