What is the current stock price

Assignment Help Finance Basics

Reference no: EM13751384

1. A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price?

2. If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock's expected dividend yield for the coming year?

3. Rebello's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share. What is its effective annual (not nominal) rate of return?

4. Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting?

5. Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's cost is 14.0%, and the corporate (composite) WACC is 12.0%. All of Division A's projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept?

6. Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% (constant). What is the cost of common from retained earnings based on the DCF approach?

7. Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.

8. Simkins Renovations Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative), in which case it will be rejected.

9. Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?

10. Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a three-year tax life, would be depreciated by the straight-line method over its three-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's three-year life. What is the project's NPV?

Reference no: EM13751384

Questions Cloud

How scientice revolution had great impact on european world : The scientice revolution and enlightenment had a great impact on the European world. Select two phiosophers from the Enlightenment and explain how their ideas encouraged the rise of the Enlightened Despots or progress.

Tool that is used in the closure of contracts : Identify and briefly describe at least one tool that is used in the closure of contracts. Use an example from an IT project. Your response should be at least 75 words in length

How many workers should you hire : What is the marginal product of the second worker and what is the marginal revenue product of the fourth worker?

What troop help restore order to end rebellion of bacons : What troop help restore order to end the rebellion of Bacon's Rebellion?

What is the current stock price : A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price?

Gantt chart view with the network diagram : Compare and contrast the Gantt Chart view with the Network Diagram view in MS Project 2010. Under what circumstances would you use each

How howard zinns accounts of homestead strike : How Howard Zinns accounts of the homestead strike and pullman strike illustrate both the issues and the oppositional forces involved in such change?

Compute the net present value-internal rate of return : Calculate the net present value, internal rate of return, and simple payback. Next, determine the effect that each of the three (3) values will have on the company.

Structuring system process requirements : Structuring System Process Requirements and Structuring System Data Requirements. Determine actors, use cases, and relationships

User Account

All Pages