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!
Long-term bonds are currently yielding 3% and the average risk premium on long-term government bonds is 2%. Apple has a market beta of 1.5 and the market-risk premium is 6%. Investors in Apple have a cost of equity that is calculated using the CAPM with the long-term risk free rate as the risk-free rate. A new innovation allows Apple to generate an additional dividend of $0.20 per share in perpetuity, starting in one year, and this dividend is expected to grow by 5% each year following the first year. All interest rates, rates of return, and growth rates are APR rates compounded annually. How much should Apple's share price increase today based off of the present value of this new dividend stream? Your answer should be exact and entered in dollars. (Example: $ 1.50 would be entered as 1.5)
Crandal Dock works is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Five Rivers flotation expense on the new bonds will be $50 pe..
A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $733.23. The company's federal-plus-state tax rate is 30%. What is the firm's after-tax component cost of debt for purposes of calculat..
The owners of a chain of fast-food restaurants spend $25000000 installing donut makers in all their restaurants. This is expected to increase cash flows by $11000000 per year for the next 5 years. The discount rate is 5.3%. What is the net present va..
1 how does corporate strategy differ from business strategy?2 how has the practice of corporate strategy evolved over
Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,310,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life.
Explain how a time-series design minimizes most threats to internal validity from time-related variables.- What is the purpose of developmental research designs?
In which step of the seven-step systematic economic analysis technique (SEAT) are risk and uncertainty explicitly considered?
Your firm is considering replacing a machine that originally cost $250,000 with a new machine costing $290,000. It will also cost $10,000 to install the new machine. The new machine has a much higher output and would increase sales by $100,000 each y..
Discuss the problems that loans tied to a bank's base rate present in measuring interest rate risk where the base rate is not tied directly to a specific market interest rate that changes on a systematic basis.
ABC Company sells 4,959 chairs a year at an average price per chair of $155. The carrying cost per unit is $16.16. The company orders 563 chairs at a time and has a fixed order cost of $91 per order. The chairs are sold out before they are restocked...
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,200,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of $1,000 and makes semi-annual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what i..
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