Rate of return that shareholders expect to receive

Assignment Help Finance Basics
Reference no: EM133057115

You purchase 5,000 shares in XYZ Limited at a price of R80 ea. XYZ has just produced free cash flows of R0.80 per share.XYZ is expected to achieve a constant growth in cash flow of 10% a year.

To one decimal place, what is the rate of return that shareholders expect to receive? NB Express your answer as a decimal (15% = 0.15)

Reference no: EM133057115

Questions Cloud

Big data analytics with business intelligence : what they are doing wrong, and how they can improve to be more successful in the implementation and maintenance of big data analytics with business intelligence
What is the before-tax cost of debt : Use the information in the table below to answer the questions a - e.
How is cost behavior altered in the typical flexible : How is cost behavior altered in the typical flexible manufacturing environment as compared to a traditional manufacturing system
Compute the actual cost of the client applications : Actual usage amounted to 3,700 pounds of Type 1 and 7,800 pounds of Type 2. Compute the actual cost of the client applications
Rate of return that shareholders expect to receive : You purchase 5,000 shares in XYZ Limited at a price of R80 ea. XYZ has just produced free cash flows of R0.80 per share.XYZ is expected to achieve a constant gr
Calculate pil share price today : Powell Industries Ltd (PIL), based in St. Andrew, has secured a new contract making them the sole supplier of commercial oxygen in Jamaica for the next three ye
How should Olive Ltd report this transaction : Required According to accounting standard, how should Olive Ltd report this transaction in its financial statements for the year ended 31 December 20X3
What is the net advantage to leasing : Carolina Trucking Company (CTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000 and falls into the MACRS 3-year class.
What is the present value : A 24 year old employee makes $100,000 per year with her employer. At a 4% discount rate, what is the Present Value of her and her employer's future contribution

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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