User Account

All Pages

Calculate your estimated value today for BuyNow Shares

Assignment Help Accounting Basics
Reference no: EM132740859

Question - A client has requested you analyse share investment options for them and provide a recommendation on which opportunity to invest in. They have told you they have a required return of 8%. They also provide the following information about the two shares:

BuyNow limited pays an annual dividend of $2.70 and expects to pay annual dividends at this level into the future. BuyNow shares are currently trading at a price of $30.60

Paylater Limited just paid an annual dividend of $1.75 with dividends expected to grow at 6%p.a. Paylater shares are currently trading at a price of $97.80

Required -

a) Calculate your estimated value today for BuyNow Shares.

b) Calculate your estimated value today for Paylater Shares

c) Which shares would you recommend they buy and why?

Reference no: EM132740859

Questions Cloud

Find what is the nominal annual percentage cost of non-free : Newsome Inc. buys on terms of 3/15, net 45. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
What are power theories : What are power theories and give a specific example of a power theory in the workplace? Was it ego or need driven? The response must be typed.
Organization understood the need for improvement : What actions would you take to ensure that employees in the organization understood the need for improvement and were able to cope with the accompanying changes
What would be the yield to a us investor : What would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $4 million.)
Calculate your estimated value today for BuyNow Shares : Paylater Limited just paid an annual dividend of $1.75 with dividends expected to grow at 6%p.a. Calculate your estimated value today for BuyNow Shares
Adopting a transactional leadership approach : What is the relevance of otherwise for managers adopting a transactional leadership approach in the contemporary organization?
What are the pros and cons of unionization : Should Tesla workers at the Fremont, CA automotive plant unionize? What are the pros and cons of unionization both from Tesla's perspective and from the workers
What is the difference between the standard and actual price : Alpha Company purchases 20,000 pounds of materials. What is the difference between the standard and actual price paid for the materials?
What is the effectiveness of caterpillar operational : Using supporting research and data, what is the effectiveness of Caterpillar's operational plan for global strategies

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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