User Account

All Pages

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

  Find the aftertax cash flow from the sale of the asset

Consider an asset that costs $519,200 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a 8-year project.

  How much principal will be outstanding

You want to buy a house for $425,000. You plan to make a down payment of $75,000. If you take out a 30-year mortgage at a 4.8% APR

  Did the adams family have a cash surplus or cash deficit

Create a personal income and expense statement for the period ended December 31, 2012. It should be similar to a corporate income statement. Did the Adams family have a cash surplus or cash deficit?

  What is the current price of the common stock

McGaha Enterprises expects earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

  Computation of cost of equity using constant growth rate

Computation of cost of equity using constant growth rate and The constant growth rate dividend capitalization model approach

  Domestic and foreign currency values of exports

What will happen if the exchange rate falls to 1.10, assuming that the value of the elasticity of demand for exports is -0.2?

  Hiring and selection case

Ron supervises three operations at ACME Company - filling, packing, and labeling. He was promoted from within the organization.

  What does he mean by the statement

How does Jefferson derive the amount of 22,500 pounds sterling per annum, and what does he mean by the statement "we have a right to say that only 22,500 pounds

  What is its yield to maturity

Coupons are paid annually. If the bond currently sells for $1,050, what is its yield to maturity?

  Time value of money solution

How much more must Keith save each year (suppose end of the year payments) for each of next eight years to have enough savings to pay for his daughter? Assume Keith can earn 9% on his savings.

  Calculate the net realizable value of accounts receivable

The following events occur for Morris Engineering during 2012 and 2013, its first two years of operations.

  Financial performance and position of the outdoor life ltd

Outdoor Life ltd is a Medium size company operating in the county of Berkshire, England. They manufacture and retail Bicycles and associated accessories for riders, as well as outdoor equipment like Tents, Tarp, and Sleeping Bags etc. Currently they ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd