Reference no: EM13122445
Can you show the work for the following problems:
1) Westover Winds just paid a dividend of $2.50 per share. The company will increase its dividend by 8 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 12 percent?
2) Consider a project to supply 60,800,000 postage stamps to the U.S. Postal Service for the next 5 years. You have an idle parcel of land available that cost $760,000 five years ago; if the land were sold today, it would net you $912,000, aftertax. The land can be sold for $1,500,000 after taxes in 5 years. You will need to install $2,356,000 in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's 5-year life. The equipment can be sold for $456,000 at the end of the project. You will also need $469,000 in initial net working capital for the project, and an additional investment of $38,000 in every year thereafter. All net working capital will be recovered when the project ends. Your production costs are 0.38 cents per stamp, and you have fixed costs of $608,000 per year. Your tax rate is 31 percent and your required return on this project is 11 percent. What bid price per stamp should you submit?
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Discrete random variable with probability mass function
: Discrete random variable with probability mass function, 1) Let X be a discrete random variable with probability mass function Pr{X=k}= c/(1+(k^2)) for k= -2,-1, 0, 1, 2.
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Information about principal ideal domain
: Let R be a principal ideal domain and a, b, in R, not both zero. Prove that a, b have a greatest common divisor that can be written as linear combination of a and b.
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Calculate the moles of ar present
: A 363 mL container holds 0.146 g of Ne and an unknown amount of Ar at 35°C and a total pressure of 636 mmHg. Calculate the moles of Ar present.
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Description of job order or process costing
: Which of the following describes job order or process costing?
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Illustrate what bid price per stamp should you submit
: All net working capital will be recovered when the project ends. Your production costs are 0.38 cents per stamp, and you have fixed costs of $608,000 per year. Your tax rate is 31 percent and your required return on this project is 11 percent. Il..
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A fast food outlet has an average of cars
: A fast food outlet has an average of 8 cars at the drivethrough during "lunch rush" 11am-1pm. On average, 2 cars per min. arrive at the resaurant parking lot, and consider the drivethrough
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Computing the linear function
: Differentiate between a function and a linear function. Describe the mathematical equation of a standard linear function. Describe how to compute the slope of a line.
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Calculate the boiling point of the solution
: A solution is prepared by dissolving 27.1 g urea, (NH2)2CO, in 171.2 g water. Calculate the boiling point of the solution. Urea is a nonelectrolyte.
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Compute the materials price variance
: (a) Compute the actual cost per foot for materials for March. (b) Compute the materials price variance and a total variance for materials.
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