Share of stock-what will be your return

Assignment Help Financial Management
Reference no: EM131343754

1. Suppose you purchase a share of stock for $75, hold it for 1 year (during which you collect a dividend of $5.00 per a share), and then sell the stock for $85. What will be your return?

26.3%

20.0%

25.0%

5.0%

2. A replacement project will annually generate additional revenues of $800,000. It has fixed and variable cost total $500,000. It will increase depreciation costs by $220,000. The firma has a marginal tax rate of 34%. What is the projection for the firm's operating cash flow for this replacement.project.

A. $272,,800

B. $8,000

C. 27,200

D. $52,800

Reference no: EM131343754

Questions Cloud

Compare the results to biofilm of this module : One classical growth model has a bacterium that is to divide die if its cell has no empty neighbors. Develop this model and compare the results to biofilm of this module.
How strong did the leader feel the research on the topic was : Identify, analyze, and discuss the components that comprise a valid evidence-based research study.Based on the information compiled above, interview a health care leader about his/her experiences related to using evidence-based research to drive c..
Interpreting bond yields : Interpreting Bond Yields: Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bon..
Discuss the impact of this revision on the biofilm structure : Such a random walk in search of an available location is comparable to a daughter bacterium adhering to the mother bacterium and pushing other bacteria out of the way. Discuss the impact of this revision on the biofilm structure.
Share of stock-what will be your return : Suppose you purchase a share of stock for $75, hold it for 1 year (during which you collect a dividend of $5.00 per a share), and then sell the stock for $85. What will be your return? A replacement project will annually generate additional revenues ..
Which do you feel is more relevant to todays classroom why : Edu. 381- Which do you feel is more relevant to today's classroom, why? Choose a researcher, whose best practices will work best in the classroom you plan on teaching, why?
Write an essay about molecular modelling : Write an essay about molecular modelling, its uses, and applications, and use a freely available modelling software from the internet and include the details of the modelling you followed, and give examples of at least three models you developed.
Contrast between the anticipated returns : You have just won $500,000 in the lottery. Given what you know about the time value of money and risk vs reward, what would you invest this in and why. Please pick your top three investments, explain your choice, and offer some contrast (if any) betw..
Produces carbonic acid and sodium chloride : 1. Calculate the grams of Na2CO3 required to prepare 250.0 mL of 0.375 M Na2CO3 solution. 2. The reaction of sodium carbonate with hydrochloric acid produces carbonic acid and sodium chloride.

Reviews

Write a Review

Financial Management Questions & Answers

  What semi-annually sinking fund payment

What semi-annually sinking fund payment would be required to yield 46000 seven years from now? The annual interest rate is 4% compounded semi-annually? and the table is at 7 periods 0.1266096 and at 14 periods it is 0.0546690

  Management expect to reduce payout-mature manufacturing firm

Antiques ‘R’ Us is a mature manufacturing firm. The company just paid a dividend of $12.00, but management expects to reduce the payout by 5.25 percent per year, indefinitely. If you require a return of 10 percent on this stock, what will you pay for..

  About the lease analysis

As part of its overall plant modernization and cost reduction program, the management of Tanner-Woods Textile Mills has decided to install a new automated weaving loom. The salvage value is clearly the most uncertain cash flow in the analysis. Assume..

  Calculate the initial outlay required to fund this project

J.B. Corporation is considering the purchase of equipment that has an invoice price of $450,000. The equipment was recommended by a consulting firm that did an analysis for J. B. Corporation. J. B. paid the consulting firm $12,000 for its report. The..

  Manufacturing has a target debt-equity ratio

Lannister Manufacturing has a target debt−equity ratio of .30. Its cost of equity is 12 percent, and its cost of debt is 7 percent. If the tax rate is 34 percent, what is the company’s WACC?

  Convertible semi-annually for the last five years

Find the price of a $1000 par value 10-year bond with coupons at 8.4% convertible semi-annually, which will be redeemed at $1050. The bond is bought to yield 10% convertible semi-annually for the first five years and 9% convertible semi-annually for ..

  Assume that interest rate parity holds

Assume that interest rate parity holds. U.S. interest rate is 13% and British interest rate is 10%. The forward rate on British pounds exhibits a ____ of ____ percent.

  Using the liquidity premium theory

Based on economists’ forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1 = 1.30% E(2r1) = 2.45% L2 = 0.05% E(3r1) = 2.55% L3 = 0.10% E(4r1) = 2.85% L4 = 0.12% Using the l..

  Principle-agent problem in context of corporate governance

Describe the role of interested and disintered directors in corporate governance. What is meant by the principle-agent problem in the context of corporate governance? What are some ways agents can make-self serving decisions? What are some mechanisms..

  What is the value of common stock

Lacewell Inc. recently paid a dividend of $2.00 per share. The company's dividends are expected to grow at a constant rate of 6% and the stock's required return is 13%. What is the value of Lacewell Inc.'s common stock?

  Calculate the payback-cash flows for two products

Assume a $250,000 investment and the following cash flows for two products. Year Product X Product Y 1 $ 90,000 $ 50,000 2 90,000 80,000 3 60,000 60,000 4 20,000 70,000 a. Calculate the payback for products X and Y. Payback Product X Years Product Y ..

  The yield curve for treasury securities is flat

Short Corp just issued bonds that will mature in 10 years, and Long Corp issued bonds that will mature in 20 years. Both bonds promise to pay a semiannual coupon, they are not callable or convertible, and they are equally liquid. Further assume that ..

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