Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Amarindo, Inc.? (AMR), is a newly public firm with 11.5 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be ?$15.46 ?million, and you expect the? firm's free cash flows to grow by 4.3?% per year in subsequent years. Because the firm has only been listed on the stock exchange for a short? time, you do not have an accurate assessment of? AMR's equity beta.? However, you do have beta data for? UAL, another firm in the same? industry:
Equity Beta Debt Beta Debt-Equity Ratio
UAL 1.65 0.33 1.1
AMR has a much lower? debt-equity ratio of 0.33?, which is expected to remain? stable, and its debt is risk free.? AMR's corporate tax rate is 32?%, the? risk-free rate is 5.2?%, and the expected return on the market portfolio is 11.5%.
a. Estimate? AMR's equity cost of capital.
b. Estimate? AMR's share price.
The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromoatograph for the firms R&D department. The equipments basic price is $70,000, and it would cost another $15,000 to modify it for special use b..
Shalit Corporation's 2013 sales were $12 million. Its 2008 sales were $6 million. At what rate have sales been growing? Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5..
A stream of pavements over a 5 year period have a present worth of $100,000. Payments in years 1, 4 and 5 are $15,000, $30,000, and $35,000. The value in years 2 and 3 must be determined. Year 3 is twice year 2. What are the values of year 2 and year..
Calculate the expected return of your portfolio. Calculate the portfolio beta. Given the information above, plot the security market line on paper. Plot the shares from your portfolio on your graph.
Suppose you invested $98 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $0.47 today and then you sold it for $99. What was your dividend yield and capital gains yield on the investment?
What is the 2-year par yield when the zero rates are as in Problem? - What is the yield on a 2-year bond that pays a coupon equal to the par yield?
Assume that you work for a manufacturing company that manufactures blue jeans, and you have been tasked with explaining the company’s cost flows. How do the manufacturing costs flow through your company’s accounting system (capitalization to expirati..
The Acme Chip Manufacturing Company (potato not computer) has a target capital structure of 40% debt and 60% common equity. They also have a 40% tax rate. They have three projects under consideration code named: What would be your capital budget? The..
You have just borrowed $235,000 using a 1/1 ARM where payments for the first year are interest-only and the balance of the loan is fully amortized over the remaining 29 years. If you expect the yield on the 1-year LIBOR to be 4% one year from now, wh..
Consider two stocks, Stock D, with an expected return of 17 percent and a standard deviation of 32 percent, and Stock I, an international company, with an expected return of 10 percent and a standard deviation of 20 percent. The correlation between t..
Your firm offers a 20-year, semiannual coupon bond with a yield to maturity of 8.35 percent, a face value of $1,000, and a market price of $1,054. What is the coupon rate? How would a financial manager determine optimal capital structure? How would t..
On the following June 1, his fund balance is $2400. What is Jeff's time-weighted rate of return?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd