Thinking of building chemical processing plant

Assignment Help Financial Management

Reference no: EM132055971

1. The common stock of Kangaroo Tours is selling for $67.13 a share and has a 14.6 percent rate of return. One-third of the return on this stock is derived from dividends and the other two-thirds is derived from capital gains. What is the amount of the next dividend?

2. A project has the following cash flows for years 0 through 2, respectively: -12,091, 9,780, 9,321. What is the internal rate of return on this project?

3. GDebi Enterprises is thinking of building a chemical processing plant to produce 4-hydroxy-3-methoxybenzaldehyde. The firm estimates that the initial cost of the project will be $10.4 million, and the plant will produce cash inflows of $7.8 million for the next 5 years, after which time the project will terminate. In the 6th year however, the firm will need to clean up the site, which it estimates will cost it $4 million. The discount rate the firm wants to use for the project is 13.8 percent. What is the NPV of this project? (Enter answer in millions.)

Reference no: EM132055971

Questions Cloud

What are the net operating cash flows during years one-two. : What is the initial investment outlay, that is, the Year 0 project cash flow? What are the net operating cash flows during Years 1, 2, and 3?

Dividend discount and residual income valuation models : Critically discuss the merits and limitations of the Discounted Cash Flow, Dividend Discount and Residual Income valuation models,

Sales per year for overhauling to be preferred alternative : What should be your "sales per year" for overhauling to be the preferred alternative?

Payments based on amortization schedule : You will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance.?

Thinking of building chemical processing plant : GDebi Enterprises is thinking of building a chemical processing plant to produce 4-hydroxy-3-methoxybenzaldehyde.

What is the amount of next dividend : One-third of the return on this stock is derived from dividends and the other two-thirds is derived from capital gains. What is the amount of the next dividend?

Sales outstanding on its cash conversion cycle : Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle.

Calculate annual return on the mutual fund over two-year : Suppose an individual invests $50,000 in a load mutual fund for two years. calculate the annual return on the mutual fund over the two-year investment period.

Excess funds from premiums or make long-term loans : Insurance companies typically invest large amounts of excess funds from premiums or make long-term loans,

User Account

All Pages