Differences between two tools for designing business models

Assignment Help Financial Management

Reference no: EM132003271

1. James makes $180,000 a year ($15,000 a month). He pays 27% in taxes and his living expenses are $8,000 a month. He wants to invest the remaining for 30 years at 5%. How much will his portfolio be after 30 years? NOTE that he contributes every month into his portfolio.

2. What are the similarities and differences between the two tools for designing business models?

3. What is the intrinsic value of a stock that has an expected dividend at t 1 of $3.50. Assume that the dividend grows at 40% during the first stage which ends at t-3. For the second stage you expect that the dividend does not grow at all (zero growth). Use a required rate of return of 22%.

Reference no: EM132003271

Questions Cloud

Company will maintain dividend for the next six years : The company will maintain this dividend for the next 6 years and will then cease paying dividends forever.

Case beyond reasonable doubt at criminal trial : A defendant is charged with a crime, but the prosecutor failed to prove the case beyond a reasonable doubt at a criminal trial.

Leaving the scene of an accident is not inherently evil : Leaving the scene of an accident is not inherently evil, but wrong because it is prohibited by statute. Therefore, it is a ________ crime.

What must the coupon rate be on the bonds : Kiss the Sky Enterprises has bonds on the market making annual payments, What must the coupon rate be on the bonds?

Differences between two tools for designing business models : What are the similarities and differences between the two tools for designing business models?

Determine the indifference point : Given these two alternatives, determine the indifference point (where total costs are equal).

Small food processing plant that currently generates revenue : You own a small food processing plant that currently generates revenues of $2 million per year. What is the value of your plant?

Estimate of the intrinsic value of share of the stock : What is your estimate of the intrinsic value of a share of the stock? What do you expect its price to be one year from now?

Compute the cost of capital for the CFO : As the intern, compute the cost of capital {WACC} for the CFO.

User Account

All Pages