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!
A firm is debating whether or not to conduct a share repurchase or pay a special dividend with $11,000 cash. Current EPS is $1.40 per share, and the 2,000 shares outstanding currently sell for $58 each. You own exactly 1 share.
a) If the firm makes the special dividend payment, what will your total wealth be?
b) If the firm repurchases shares, how many shares will be repurchased, and what will your total wealth be?
c) If the firm makes the special dividend payment, what will the P/E ratio be?
d) If the firm repurchases shares, what will the new EPS be?
For the next 8 years, you decide to place $4454 in equal year end deposits into a savings account earning 9.85 percent per year. How much money will be in the account at the end of that time period?
Fama’s Llamas has a weighted average cost of capital of 9.3 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 7.3 percent. The tax rate is 40 percent. What is the company's debt-equity ratio?
There are two firms: firm U and firm L. both firms have $50M total assists and $8M EBIT (earnings before interest and taxes).. Firm U is an unleveraged firm without debt. Firm L ia a leveraged firm with 50% of debt and 50% of common equity. The pre-t..
A one-year call option contract on Cheesy Poofs Co. stock sells for $1,310. In one year, the stock will be worth $63 or $84 per share. The exercise price on the call option is $76. What is the current value of the stock if the risk-free rate is 4 per..
Mr. Papp paid the following professional fees: To CPA for preparation of Form 1040...$4,200 To CPA for preparation of federal gift tax return...900 To attorney for drafting Mr. Papp's will...7,800 To attorney for estate tax planning advice...3,000 To..
(a) How many gallons would be sold per hour if the price is $2.45 per gallon? Answer: _________ (b) What must the gasoline price be in order to sell 1300 gallons per hour? Answer: $ _________
The management of Erion Corporation is considering the purchase of an automated molding machine that would cost $280,534, would have a useful life of 5 years, and would have no terminal (salvage) value. The automated molding machine would result in c..
The firm purchased a truck five year ago for $15,000. The truck is halfway through its 10-year life, but you must sell the truck. You have taken $2000 of depreciation on the truck each year. The dealer will only pay $7500 for the truck. The tax rat..
Musical Charts just paid an annual dividend of $1.84 per share. This dividend is expected to increase by 2.1 percent annually. Currently, the firm has a beta of 1.12 and a stock price of $31 a share. The risk-free rate is 4.3 percent and the market r..
How much should be the lump sum repayment amount at the end of three years period?
A stock price is currently $50. Over each of the next two six-month periods it is expected to go up by 15% or down by 10%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a one year European put option wi..
Hooper printing inc has bonds outstanding with 15 years left to maturity. You are entitled to 15 more interest payments since the bonds have an 8% semi annual coupon. Par value at issue is $1000. However, due to changes in interest rates, the bond's ..
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