Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Rand Co.'s current rate of return (ROE) is 14%. It pays out(payout ratio) half of its earnings as dividends. Current book value is $50 per share. Book value per share will grow as Rand reinvests earnings.
Assume ROE and payout ratio stay the same for the next 4 years. After that competition forces ROE down to 11.5% and payout increases to .8. The cost of capital is 11.5%
a. What are Rand's EPS and dividends next year? How will EPS and dividends grow in years 2, 3, 4, and 5 in subsequent years?
b. What is Rand's stock worth per share? How does that value depend on the payout ratio and growth rate after year 4?
Include formulas used to calculate EPS and dividends as well as stock worth per share. Please answer part b question - "How does that value depend on the payout ratio and growth rate after year 4?"
If company B has the $100,000 cash today, and invested it at a rate of the 10% for each year for two years, how much will they have in two years?
Determine the total amount of property, plant, and equipment that will appear on the balance sheet, also estimate the following is the least likely consideration that management uses when deciding whether to pay a dividend.
John has just begun investing, & one of his friends was mentioning how he could use short selling as an effective method to drive up his returns when market started to go down.
Analyze the history and evolution of Internet and the World Wide Web. Reflect on where these technologies started. Identify and explain the roles of ARPANET, NSF, and IETF. Then, describe the evolution of the WWW.
Computation of NPV using the given financial ratios and Show the adjustments for each problem individually and not a cumulative adjustment unless the question directs you to do so.
Hurd Corporation acquired a building valued at $160,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 each share.
Make the calculations necessary to arrive at the correct figures for total contribution margin, contribution margin per unit, the contribution margin ration, and profit (or loss) with calculations.
Suppose a company has a profit margin of 2.5% and an equity multiplier of 2.0. Its sales are $50,000. The common equity is $25,000. Compute its return on common equity (ROE).
A stock is at present valued at $24 a share, standard deviation of its return is 60 percent a year, and the risk free rate is 4% per year. The company pays $0.30 quarterly dividend per share.
A used machine costs$100,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last 3 years and cost only $4,000 annually to run? The opportunity cost of capital is 12%
Assume you are aware of the following investment opportunity: You could open a coffee shop around the corner from your home for $25,000. IF business is strong, you could net $15,000 in after tax cash flows each year over next 5-years.
Company A is about to pay a dividend of $3.15 per share. Its future EPS and dividends are expected to grow with inflation, which is forecasted at 3 percent per year.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd