Raising its shares outstanding

Assignment Help Financial Management
Reference no: EM131067520

Blue Dog Manufacturing Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. Blue Dog is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,100,000 new shares of stock (raising its shares outstanding from 5,500,000 shares to 7,600,000 shares).

Reference no: EM131067520

Questions Cloud

Organization information and the costs of producing : The value of information is the difference between the benefits realised from using that information and the costs of producing it. Would you, or any organisation, ever produce information if its expected costs exceeded its benefits? If so, provid..
Acceleration of gravity on the moon : Determine the time for the feather to fall to the surface of the moon if i t dropped on the moon from a height of 1.40 meters. The acceleration of gravity on the moon is 1.67 m/s2.
Finding the required rate of return on equity capital : Finding the required rate of return on equity capital. How do I find the RE with only using information found online? I need to find it for PepsiCo and I am not sure and the book that I am studying does an awful job of explaining. Could someone expla..
Determine the acceleration of the car : Determine the acceleration of the car if race car accelerates uniformly from 18.5 m/s to 46.1 m/s in 2.47 seconds.
Raising its shares outstanding : Blue Dog Manufacturing Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. Blue Dog is forecasting an increase of 25% for its net income next year, but it also expects it will have to issue 2,100,000 new ..
Provides the highest overall net present value : There is sometimes a ranking problem among NPV and IRR when selecting among mutually exclusive investments. This ranking problem only occurs when. The objective of ________ is to select the group of projects that provides the highest overall net pres..
Financial calculator to find the yield to maturity on bond : Find the current yield of a 5.65 percent, 8-year bond that's currently priced in the market at $853.75. Now use a financial calculator to find the yield to maturity on this bond (use annual compounding). What's the current yield and yield to maturity..
Investigate the new automated information system : Explain your choice of the three most useful investigation techniques that you have used to investigate the new automated information system
The biggest impact on a firm pe ratio : According to finance professionals, which one of these factors has the biggest impact on a firm's PE ratio? a. Accounting practices of the firm b. Risk-level of the firm c. Size of the firm d. Growth opportunities e. Age of the firm

Reviews

Write a Review

Financial Management Questions & Answers

  Assume these amounts will be compounded at an annual rate

Suppose you deposit $2,000 at the end of year one, nothing at the end of year 2, $800 at the end of year 3, and $1,200 and the end of year 4. Assume these amounts will be compounded at an annual rate of 8%. How much will you have deposited at the end..

  What are the annual deposits in years

Suppose that the parents of a young child decide to make annual deposits into a savings account with the first deposit on the 5th birthday and the last on the 15th birthday.

  What is the value of this annuity five years from now

A 6-year annuity of twelve $5,400 semiannual payments will begin 11 years from now, with the first payment coming 11.5 years from now. If the discount rate is 7 percent compounded monthly, what is the value of this annuity five years from now? If the..

  Issue of preferred stock outstanding

Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?

  Complete the assets of the pro forma balance sheet

Provincial imports has assembled 2015 financial statement income and balance sheet and financial projections for use in preparing financial plans for the coming year 2016. Prepare a pro forma for year ended December 31 2016 using fixed cost data to i..

  What will be bonds price in year

In 2010, Apple issued $1000 face bonds with a 7% semi-annual coupon. The bonds mature in 2030. Exactly 5 years later, a company financially similar to Apple is preparing to issue 20 year $1000 face bonds with a 6.5% semi-annual coupon. What will be A..

  What was its charge for depreciation and amortization

Pearson Brothers recently reported an EBITDA of $9.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization? Write out your answer com..

  Operating costs using the high-low method of cost analysis

HYTECK Company’s weekly store operating costs for a 10-week period had a value of $300,000 and a low value of $260,000. Sales volumes for the two weeks were $4,000,000 and $3,200,000 respectively. At a sales level of $3,500,000, the estimated store o..

  Firm needs to plow back its earnings to fuel growth

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per share dividend in 10 years and will..

  Calculate the beta portfolio

John invested the following amounts in three stocks: Security Investment Beta Stock A $915,411 0.62 Stock B $899,517 0.88 Stock C $231,454 2.28 Calculate the beta portfolio. Round the answers to two decimal places.

  Net present value-internal rate of return-zero discount rate

There are several accepted methods of determining the monetary advantage of one investment opportunity over another: The payback method; zero discount rate; net present value; internal rate of return; modified internal rate of return; etc. Discuss on..

  Determine the yield-to-maturity and bonds coupon rate

Two years ago, Trans-Atlantic Airlines sold $250 million worth of bonds at $1,000 each. These semi-annual bonds had a maturity of 12 years and a coupon rate of 12.5%. Today these bonds are selling for $1,000. Determine the yield-to-maturity. A semi-a..

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