Venture capital method

Assignment Help Financial Management
Reference no: EM131312483

Company X is expected to have earnings of 100 in the begining in the 10th year -- this is a when it begins earnings. The industry the company is in is expected to have a P/E ratio of 18 in 10 years.

What is the value of the firm today? Use a discount rate of 50%

How much would a 25% share of this company's cost today? (Venture Capital Method)

Reference no: EM131312483

Questions Cloud

Create auditing plan for sport or entertainment organization : This assignment will require you to use the skills gained in Module/Week 8 to create an auditing plan for a sport or entertainment organization.
Can this system operate in real time : Find a simplified expression for y(t), the output of the reconstructor. Can this system operate in "real time"?
Commercial space treaties : Discuss the major legislation that addressed the development of commercial space transportation and describe the civilian companies and personalities that are making commercial space transportation a reality.
What leadership style to use : CASE INCIDENCE - Moving from Colleague to Supervisor. If new managers don't know what leadership style to use, what does this say about leadership and leadership training? Which leadership theories, if any, could help new leaders deal with this trans..
Venture capital method : Company X is expected to have earnings of 100 in the begining in the 10th year -- this is a when it begins earnings. The industry the company is in is expected to have a P/E ratio of 18 in 10 years. What is the value of the firm today? Use a discount..
Describe the concept of conflict : Explore the value of regarding problems as opportunities for teams.- Create a case study that involves a problem that a team could face.
Write a short note on finance in hospitals : 1. Write a short note on Finance in Hospitals? 2. Describe the Negotiating system for Hospitals rates?
Prepare an analysis of how financial management techniques : Using each of the four categories of risk, develop an analysis of how financial management techniques or policies can be used to mitigate each of the risks.
Basis of an annual life-cycle cost analysis : The U.S. Army received two proposals for a turnkey design-build project for barracks for infantry unit soldiers in training. Proposal A involves an off-the-shelf “bare-bones” design and standard grade construction of walls, windows, doors, and other ..

Reviews

Write a Review

Financial Management Questions & Answers

  Decide to make the initial deposit today

You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today?

  What are inherent issues pertaining to dividend purification

Despite the innovative developments in Shariah screening of mixed businesses, some scholars have argued in favour of "purification" as a complementary measure that should go with stock-screening. What are the inherent issues pertaining to dividend pu..

  Returns between willow stock and sky diamond stock

The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0860. The variance of Willow is 0.1440, and the variance of Sky Diamond is 0.1020. What is the correlation coefficient between the returns of the two stocks?

  Net advantage or disadvantage of re-working the keyboards

The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $7,800 they could be sold for $19,100. Alternatively, the keyboards could be sold "as is" for $7,400. What ..

  What is the market yield-to-maturity

What is the market yield-to-maturity (YTM) of a Zero Coupon Bond that pays $1,000 face at maturity in 10 years from now? The current market price of this bond is $614. (use annual discounting ,fin. Calculator or approximate YTM formula)

  Compute the irr for the new outlay

Suppose that a mining operation has spent $8 million developing an ore deposit in South America. Current expectations are that the deposit will require 2 years of development and will result in a realizable cash flow of $10 million at that time. ompu..

  Some newer fixed assets which utilize latest in technology

MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $50,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling the..

  Distinguishing features of walmart china distribution system

How could vendors be encouraged to participate in Wal-Mart China’s sustainability initiatives? What are the distinguishing features of Wal-Mart China’s distribution system? How can Wal-Mart improve sustainability in its distribution and retail operat..

  Assume riskfree rate and dividend yield

You want to hedge against your portfolio value declining more than 10% in 1 year. Currently, the S&P500 is standing at 2,000 and your portfolio has a beta of 1.8. You need to purchase 1-yr S&P500 put options. Find the exercise price of the index put ..

  Based on cash flows rather than on accounting profits

A corporation's cost of common equity may be estimated using either a dividend valuation model or the capital asset pricing model. Advantages of the payback period include that it is easy to calculate, easy to understand, and that it is based on cash..

  Find the total interest paid over the life of the loan

A $165,400 mortgage is taken out at 3.35% for 15 years, for the purchase of a house. The loan requires monthly payments. Find the total interest paid over the life of the loan?

  What was the return of the stock market that day

On November 27, 2007, The Dow Jones Industrial Average closed at 12,958.44, which was up 215.04 that day. What was the return (in percent) of the stock market that day?

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