How much will you pay for the company stock

Assignment Help Finance Basics
Reference no: EM133075708

1) Woods Inc. has 3,669 fully-diluted shares outstanding trading at $73.54 per share, 466 preferred shares outstanding trading at $95.32 per share, 121 bonds outstanding with a weighted price of $1,021.85 per issue, $9,982 in cash and cash equivalents, and $479 in minority interest. If the company's EBITDA is $38,677.91, what is its EV/EBITDA multiple? [Round the final answer to two decimals]

2) Fowler Inc., will pay a dividend of $0.65 per share next year. The company pledges to increase its dividend by 1.5 percent per year indefinitely. If you require a return of 8.4 percent on your investment, how much will you pay for the company's stock today? [Round the final answer to the nearest cent]

3) McIlroy Inc., is growing quickly. Dividends are expected to grow at a rate of 19.1 percent for the next three years, with the growth rate falling off to a constant 1.5 percent thereafter. If the required return is 10.5 percent, and the company just paid a dividend of $0.83, what is the current share price? [Round the final answer to the nearest cent]

4) Day Inc., is expected to have an EBIT of $1.99 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $134,926, $76,850, and $114,151, respectively. All are expected to grow at 16 percent per year for five years. The company currently has $10 million in debt and 1,208,435 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company's WACC is 11 percent and the tax rate is 25 percent. What is the price per share of the company's stock? [Round the final answer to the nearest cent]

Reference no: EM133075708

Questions Cloud

SPSS and basic statistical analysis : Select a specific issue of public concern and/or policy relevance in recent media reporting and Extract some quantitative data to illuminate the problem
How much will Bob insurance pay for this loss : Bob has a major medical policy with a $500,000 lifetime aggregate limit, a $500 annual deductible. How much will Bob insurance pay for this loss
What is taxable income and tax liability in each scenario : In 2021, Lee borrowed $5 million to gamble and lost it all. He was unable to pay it back in full, What is taxable income and tax liability in each scenario
Team projected financial performances : The sensitivity analysis used the 2019-2023 pro forma income statement as a baseline for the team's projected financial performances.
How much will you pay for the company stock : 1) Woods Inc. has 3,669 fully-diluted shares outstanding trading at $73.54 per share, 466 preferred shares outstanding trading at $95.32 per share, 121 bonds ou
Prepare an incremental analysis for the special order : Rudd would sell the discs under its own brand name in foreign markets not yet served by Larkin. Prepare an incremental analysis for the special order
Gain institutional review board approval and final approval : Discuss what approach and steps you would take or emphasize to ensure that you gain institutional review board approval and final approval to conduct research
What are the market prices of at-the-money : Consider a stock which is currently selling at $4.5. The stock price will either go up to $5 + x with probability 0.5 or go down to $5 - x with probability 0.5
Design a short self-completion questionnaire : Conduct a small-scale pilot of the existing questions and explain whether or not you would modify them in the light of that experience

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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