Philly construction specializes in designing and building

Assignment Help Accounting Basics
Reference no: EM13570138

Philly Construction specializes in designing and building custom homes. Business has been excellent, and it projects a 10% growth rate for the foreseeable future. The company just paid a $3.75 dividend. Comparable stocks are returning 11%.what is the intrinsic value of their stock? Does this seem reasonable? Why or why not?if the growth rate is only 8.5% and comparable stocks are really returning 12%, what is their intrinsic value?Do these relatively small changes in assumptions justify the change in the intrinsic value? Why or why not?

Reference no: EM13570138

Questions Cloud

Abc inc has a beta of 15 the risk-free rate of return is 45 : abc inc. has a beta of 1.5. the risk-free rate of return is 4.5 and the market risk premium is 6.5.use the security
To save for her newborn sons college education lea wilson : to save for her newborn sons college education lea wilson will invest 1000 at the beginning of each year for the next
Under both us and ifrs which one of the following items is : under both u.s and ifrs which one of the following items is reported separately in the income statement net of tax? a.
The purchasing department buys the quantities of raw : costello corporation manufactures a single product. the standard cost per unit of product is shown below.direct
Philly construction specializes in designing and building : philly construction specializes in designing and building custom homes. business has been excellent and it projects a
If the tax rate is 40 percent what is the aftertax salvage : an asset used in a four-year project falls in the five-year macrs class macrs table for tax purposes. the asset has an
Why do we focus on cash flows rather than net income in : why do we focus on cash flows rather than net income in capital budgeting? is operating cash flow the same as ebitda
Marsden manufactures a cat food product called special : 1 under absorption costing a company had the following unit costs when 13500 units were produced.direct labor 11.25
From the first e-activity below discuss the possible future : social stratification please respond to the followingbullfrom the first e-activity below discuss the possible future

Reviews

Write a Review

Accounting Basics Questions & Answers

  Tax consequences to the corporation

Susan Sweets is a 40 percent shareholder in Acclaim Inc., a theatrical supplies company. She transfers a fully depreciated car with a value of $2,000 to the corporation, but does not receive any consideration for it. a. What are the tax consequenc..

  What criteria or test is used to determine whether an asset

1.which of the following will not result in an increase in revenues?a sale of goods on creditb sales of services for

  Difference in the budgets

Astro Company is a manufacturer and Luyten Company is a merchandiser. What is the difference in the budgets the two entities will prepare?

  The johnsons calculate income taxes

The Johnsons Calculate Their Income Taxes

  The shares are held in the treasury

The shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders' equity?

  Estimated manufacturing overhead problem

Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year. However, only 75% of the employees are classified as ""direct labor."" What was the estimated manufacturing overhead for 20..

  If charles expects to live for 20 years in retirement how

1. k. herrmann has decided to set up a scholarship fund for students. she is willing to deposit 5000 in a trust fund at

  Differentiate across various forms of business combinations

Define the term business combination and differentiate across various forms of business combinations. Describe when consolidation of financial information into a single set of statements is necessary.

  Performing an appropriate hypothesis test

If the standard deviation of back charges is $650, and alpha = 0.05, test the claim of the engineering firm. Perform an appropriate hypothesis test, showing the necessary calculations and/or explaining the process used to obtain the results.

  Geox company produces and sells a specialized software

geox company produces and sells a specialized software package used by valuation analysts throughout the world. the

  Amount for bad debt expense of swan comp[any

Swan Inc is an accural basis taxpayer. Swan uses the aging approach to calculate the reserve for bad debts. During 2010, the following occur associated with bad debts: What is the amount for bad debt expense?

  Which one of the following is not a characteristic

which one of the following is not a characteristic generally evaluated in ratio

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