Reference no: EM131317801
Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.80 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and –5 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate thereafter.
Year 1: $10,000 Year 2: $12,000 Year 3: $14,000 Year 4: $16,000 Year 5: $18,000 Year 6: $18,000 Year 7: $18,000 Your cost of capital is 7%.
Using this data, make a recommendation on repair/replacement of the anesthesia machine. You must show a calculation to support your recommendation.Recommendations without justifications (including some math) will not be accepted.
Your career as the administrator at Alpine Ambulatory Surgery Center continues with some decisions on replacing capital equipment. The anesthesiologist has let you know that the anesthesia machine in one of your three (3) operating rooms has failed. Repairs for the anesthesia machine can be made at a cost of $18,000 and will have a warranty to work for at least one more year. It is currently generating $8,000 a year in cash inflows and would expect to be at that level for at least the next four (4) years. Replacing the unit would cost $55,000 and it would last for seven (7) years. You can get $4,000 in trade in for your current malfunctioning unit if you buy a replacement and could sell the replacement for $8,000 at the end of its seven year expected life. Your accountant estimates that the project will have the following annual cash inflows:
|
Methods involve contracting out for services
: Capital Healthplans Inc. is evaluating two different methods for providing home health services to its members. Both methods involve contracting out for services, and the health outcomes and revenues are not affected by the method chosen. What is eac..
|
|
Compute the expected return and standard deviation
: Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.30 71 % Slow growth 0.40 17 Recession 0.19 –18 Depression 0.11 –50 Compute the expected return and standard deviation.
|
|
Projects are expected to produce the net cash inflow
: Better Health Inc. is evaluating two capital investments, each of which requires an up-front (Year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflow
|
|
Make using covered interest arbitrage
: Given the following information, find the JPY profits you can make using covered interest arbitrage. Assume you can borrow either EUR 100,000 or JPY 14,603,000.
|
|
Constant growth rates in dividends for foreseeable future
: Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.80 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, ..
|
|
Implement algorithms for sorting in python
: MCD4710 Algorithmic Problem Solving - write a Python program similar to the one from Part A but sort by the total medal count instead. So instead of sorting by the number of gold medals that each team won, this time it should be sorted by the total..
|
|
Create an application the will calculate your total pay
: Create an application the will calculate your total pay for the number of days worked. Number of days worked can be from 1 to 30 days.
|
|
What acceleration factor does 175 ?c present
: What acceleration factor does 175 ?C present? Temperatures are junction temperatures, and typical values are 55 ?C for consumer and 85 ?C for industrial electronics.
|
|
Describe unique aspects of revenue recognition
: Insurance industry-specific financial ratios are usually prepared from financial statements prepared under what standards?
|