Calculate the present value per share

Assignment Help Finance Basics
Reference no: EM131448667

Question: The total assets of Rs 80,000 of a company are financed by equity funds only. The internal rate of return on assets is 10 per cent. The company has a policy of retaining 70 per cent of its profits. The capitalisation rate is 12 per cent. The company has 10,000 shares outstanding. Calculate the present value per share.

Reference no: EM131448667

Questions Cloud

What are the implications of the frames : Consider a book store in your area. What competitive frames of reference does it face?
Consider the tuckman group stage process schema : Identify specific actions a manager can take at each stage of the process to best help a group reach the performing stage.
Explains advantages emerging organizational structures : In this assignment, you will create a Policy Memo that explains and assesses the advantages and challenges of one of the three emerging organizational structure
Short term time frame impact long term profit maximization : How does this short term time frame impact long term profit maximization? How do you believe that management deals with these two sometimes competing goals?
Calculate the present value per share : The total assets of Rs 80,000 of a company are financed by equity funds only. The internal rate of return on assets is 10 per cent.
Related variables noise and intoxication : You know that if someone is drunk, then the probability of them being loud is .9. Use Bayes’s Rule to calculate P(drunk|loud).
Executives bear for the financial crisis : What share of the responsibility did Moody’s and its executives bear for the financial crisis.
Discuss the traits that make a successful leader : You will discuss the traits that make a successful leader and the leadership styles and functions you have read in your textbook.
Price gouging and windfall profits : During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the “price gouging” and “windfall” profits of the major oil companies.

Reviews

Write a Review

Finance Basics Questions & Answers

  Standard deviation of returns of third company share is low

Provide suitable example of three companies with workings out of how third company has greater required rate of return even if standard deviation of returns of third company share is lower.

  What are the risks of investing in bonds

What are the risks of investing in bonds? How can each type of risk be measured and managed?

  What are the two most popular database vendors in the

1. what are the two most popular database vendors in the marketplace?2. what are the pros and cons of each vendor?3.

  Represents a customer-oriented perspective

Note that the concept of price more usefully represents a customer-oriented perspective taken by marketers, rather than only "What we charge the customer." Thus, an effective pricing strategy necessarily takes into account barriers to purchase, i...

  Semiannual coupon bond with a par value of 1000 may be

1. seven years ago goodwynn amp wolf incorporated sold a 20-year bond issue with a 14 annual coupon rate and a 9 call

  Amount of yen

In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars?

  Stock market project

You are going to be investigating the stock market, first historically, then currently.

  Calculate the expected eps

Morton Industries is planning opening a new subsidiary in Boston, to be operated as a separate corporation. The corporation's financial analysts expect the new facility's average EBIT level to be $6 million per year.

  Computation of wacc-npv-weighted average flotation cost

Mustard Patch Doll Company needs to purchase new plastic moulding machines to meet the demand for its product. The cost of the equipment is $100,000.

  What market price should we expect for ps

4. Planet & Son (PS) is expected to earn $7.87 per share next year. If the average P/E ratio of firms in PS's industry is 17.5 based on forecast earnings, what market price should we expect for PS? Show Work

  What will akron''s new wacc be after the exchange offer

Assuming debt policy that is consistent with the Hamada model, what will Akron's new WACC be after the exchange offer?

  Whether the company in a position to issue debt securities

you are a capital markets product specialist at an investment bank. you have been approached by severn trent plc a uk

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