Estimate the expected value

Assignment Help Finance Basics
Reference no: EM1360472

Total Assets: $12,500,000
Total Liabilities: $8,500,000
Common Shares Outstanding: 200,000
Preferred Shares Outstanding: 50,000
Common Stock Par Value: $1
Preferred Stock Par Value: $50
Common Stock Dividends: $200,000
Preferred Stock Dividends: $150,000
Earnings After Taxes: $500,000

What is the EPS?
What is the book value per share?

The XYZ Electric Company has analyzed sales projections for the coming year based on the projected weather for the summer. XYZ believes that revenue will be $22,000,000 if the summer is unseasonably cool, $30,000,000 if the summer is average, and $41,000,000 if the summer is unseasonably hot. Weather forecasters project that the probability of an unseasonably hot summer is 30% and an unseasonably cool summer is 25%. What is the expected value of XYZ's sales for the coming year?

 

Reference no: EM1360472

Questions Cloud

Relationship between learning and psychology : What is learning? What is the relationship between learning and psychology? In other words, why are psychologists interested in the study of learning?
Illustrate what effect will this have on its optimal price : The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Illustrate what effect will this have on its optimal price.
What is the importance of forecasting : With all the forecasting we get on a daily basis from the weatherman etc., and with all the technology we have at our disposal, why cant we get the perfect forecast?
How fast is kelli moving when the swing passes through : Kelli weighs 405 N, and she is sitting on the playground swing that hangs 0.43 m above the ground. Her mom pulls the swing back and releases it when the seat is 1.00 m above the ground. suppose that air resistance is negligible.
Estimate the expected value : The XYZ Electric Corporation has analyzed sales projections for the coming year based on projected weather for the summer. XYZ believes that revenue will be $22,000,000 if the summer is unseasonably cool.
Motive for being vague about job benefits in job description : What are some of the reasons that employers might be vague about job benefits in their job descriptions? Most do not reveal salary or benefits. Why is that?
Explain how many office visits must ppomt deliver to break : Explain How many office visits must PPOMT deliver to break even and how much profit will it earn if each of its five contracted physicians sees an average of 12 patients each day?
Create class to calculate perimeter and area rectangle : Create class Rectangle. The class has attributes length and width, each of which defaults to 1. It has read-only properties that calculate the Perimeter and the Area of the rectangle.
Find out the profit-maximizing quantity of the product : Suppose that a monopolistic company faces the consumer demand curve. Find out the profit-maximizing quantity of the product.

Reviews

Write a Review

Finance Basics Questions & Answers

  Organization reward structure

Describe the relationship between type of reward structure employed by an organization for its employees and employee effectiveness and work productivity.

  Finance based question

A store sells almonds fo $6 a pound, cashews for $5 a pound, and peanuts for $2 a pound. One week the manager decides to prepare hundred sixteen ounce packages of nuts by mixing 40 pounds of peanuts with some almonds and cashews.

  Applications of basic tvm concepts

Jean Splicing will receive $50,000 in 50 years or $2,000 today. If long-term rates are 7 percent, what choice would you recommend? Find out the current value of the future payments

  The adjusted balance method to find interest amount

Bernie and Pam Britten are a young married couple starting careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest.

  Describe the reasoning behind the focus on cash flows

Describe the reasoning behind focus on cash flows rather than accounting profits in making our capital-budgeting decisions. Discuss why are we interested only in incremental cash flows rather than total cash flows?

  Explain effect on the accounting equation of the payment

Explain Effect on the accounting equation of the payment of interest and the amortization of premium

  Short term and long term profits

Managers should not focus on current stock price because doing so will lead to overemphasis on short term benefits at expense of long-term profits.

  Purchase price as well as monthly payment for two different

Purchase price as well as monthly payment for two different offers and Suppose that you want to purchase a new truck from a local dealership

  Find financial break-even level

You are considering investing in a firm that cultivates abalone for sale to local restaurants. Use the following data:

  Gordon growth model and one period valuation model

Based on the Gordon Growth Model, compute the anticipated market price of stock that is paying dividends at a constant growth rate of 6.25%, with the recent dividend of $1.00, and the required return rate of 15%.

  Identify recent merger-acquisition-assessment of success

Recognize a merger/acquisition that has been completed in the past 10 years. What has been reported or suggested as the basis of the merger?

  Determine the forecasted addition to retained earnings

L. company recently reported the following income statement for 2004. The corporation forecasts that its sales will increase by 8 percent in 2005 and its operating costs will increase in proportion to sales.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd