Reference no: EM133110527
A Suntrust Robinson analyst presents you with the following forecasts for sales per share, sales growth rate, profit margin, fixed and working capital investment, and expected debt financing over 2014-2019 for GC capital that went public in 2011:
-Sales per share is $15 in 2013
-Sales growth rate is 4% over 2014-2015 and 5% over 2016-2019.
-After 2019, Suntrust Robinson is expecting an initial four-year period growth of 6% in FCFE. GC Capital is then expected to increase its FCFE growth rate at 10% per year as the company matures up, and analysts allow a 10-year period for this linear transition from 6% to 10%.
-Net profit margin is fixed at 20%
-Investment in fixed capital= 40% of increase in sales
-Annual increase in working capital=20% of increase in sales
-Debt Financing=50% of net investments in capital equipment and working capitalPlease estimate the stock price of GC Capital if the cost of equity is 12%.
|
What is the default risk premium
: Koy Corporation's 5-year bonds yield 8.00%, and 5-year T-bonds yield 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP =
|
|
What is the amount of goodwill to be reported
: Y Co. has unimpaired goodwill in the amount of P10,000. What is the amount of goodwill to be reported in the consolidated Statement of Financial Position
|
|
Suspension of dividends
: By breaking its promise, had the bank acted unethically? What implications did the suspension of dividends have on the Group's valuation?
|
|
Virtual machines with vulnerabilities
: Describe how each stage will be carry out as well as the tools that will be used in each stage. Your design must be backed up by best practices and must include
|
|
Investments in capital equipment and working capital
: A Suntrust Robinson analyst presents you with the following forecasts for sales per share, sales growth rate, profit margin, fixed and working capital investmen
|
|
Calculate how much interest charge you are avoiding
: Calculate how much interest charge you are avoiding if you buy $3,000 of purchases at the start of the cycle and pay the full amount when due 92 days later
|
|
Discounted free cash flows methods of stock valuation
: List and explain three different major strengths of the Discounted Free Cash Flows methods of Stock Valuation compared to the Comparables methods of stock Valua
|
|
Replicate the cash flows of xyz
: Consider two firms, ABC and XYZ. The two firms are identical in every respect except their capital structure. ABC is an all-equity firm, with 1 million shares o
|
|
How does this impact taxpayers filing schedule a in the past
: The 2018 Tax Cut and Jobs Act (TCJA) made changes to Schedule A. How does this impact Taxpayers filing Schedule A in the past
|