Determine the value of one share

Reference no: EM1358189

1) You are considering a project which has been assigned a discount rate of 8%. If you start the project today, you will incur an initial cost of $480 and will receiv cash inflows of $350 a year for three years. If you wait one year to start the project, the initial cost will rise to $520 and the cash flows will incrase to $385 a year for three years. What is the value for the option to wait?

2) Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend to $2.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share fo this stock if you want to earn 12% return on your equity investments?

Reference no: EM1358189

Questions Cloud

Write c program for linked list applications : Write a complete C program which illustrates the Linked list applications data structures and algorithms. The program will read in mid-semester test scores as Main Linked List and produce six outputs:

Critical reasoning-understanding & criticizing arguments : Legislation that can't be enforced leads to disrespect for the law, so legislation making marijuana possession a criminal offense leads to disrespect for the law.

What will the traveler weigh on another planet : What will the traveler weigh on another planet. Two wires are identical, except that one is aluminum and one is iron. The aluminum wire has a resistance of 0.18 . What is the resistance of iron wire.

Time value of money for tax refunds : Should you over pay taxes throughout the year and get a refund, knowing the government does not pay interest on the overpayment? Use time value of money to explain.

Determine the value of one share : Suppose you are planning a project which has been assigned a discount rate of 8 percent. If you start the project today, you will incur an initial cost of $480 and will receiv cash inflows of $350 a year for three years.

Relationship between schizophrenia and cognitive ability : Investigate the relationship between schizophrenia and cognitive ability. I am looking for one article about this topic as a place to begin my research and at least 25 sources.

Tax research-ethics : Professor Andy Accrual works for a big state university. The state has negotiated a set of special airfares with various airlines for state employees to use when traveling on state business.

What should the jackpot be before the expected payoff : What should the jackpot be before the expected payoff is worth your $1.00 bet. Assume that the state takes 60% of the jackpot in taxes, that no one else is a winner, and that you are risk -neutral.

Disabilities as a critical disadvantage : Disabilities as a Critical Disadvantage - Why are people with disabilities at a critical disadvantage when compared with people without disabilities

User Account

All Pages