Reference no: EM132836853

Questions -

Q1. Tanner Corporation had net income of Php250,000 and paid dividends to common stockholders of Php50,000 in 2007. The weighted average number of shares outstanding in 2007 was 50,000 shares. Tanner Corporation's common stock is selling for P50 per share on the Stock exchange how many times?

Q2. An offer for unknown Corp's stock is Php20 per share. The dividend policy is to distribute a regular dividend of Php3 per share. If the required return of this investment is 16%, the offer for the stock should be at most how much per share?

Q3. Joy Corporation reported a total assets of Php250,000,000 with a return on total assets of 10%. The company ensures that 80% of their net income are cash. If Joy Corporation projects 12% growth year on year and has a required rate of return of 8%, the net present value of the net cash flows for the next 3 years is?

Q4. An analyst covering Guide Mining common stock estimates the following information for next year. Expected return on market portfolio is 12%. Expected return on Treasury Securities is 5% . Expected beta of Guide Mining is 2.2. Using the CAPM, the analyst's estimate of next year's risk premium for Guide Mining's stock is closest to?

Q5. High Hopes Inc. is targeting to hit the net cash flows from operating activities for the following years:

Year 1- Php55,000,000

Year 2- Php57,750,000

Year 3- Php60,637,500

In order to realize the growth, the company may invest further Php125,000,000 to be funded by 50% debt by end of Year 1. Based on the foregoing, if the required return is 14%, High Hopes Inc.'s Enterprise Value with a terminal value of Php673,750,000 is about Php?

Q6. An analyst is looking investing in a company although he is considering 3 growth scenarios as follows: Scenario A - 10% ; Scenario B - 12% ; and Scenario C - 15% . Further assessing these scenarios it is found that the probability of occurrence would be 40% 40% and 20% , respectively. Based on the foregoing, the weighted average growth rate is?

Q7. Elijah Food Inc. has a market capitalization of Php 4,760,680,000. In an operating period, Elija Corp reported a revenue of Php 5,600,800,000. Historically, the company has a after tax profit margin of 20% before tax profit margin of 30%. EBITDA margin of 50%. Elija Corp 's Price Earning ratio is?

Q8. Quartz Corp plays on annual dividend of 30cents per share to shareholders, which is expected to continue in perpetuity. The average rate of return for the market is 9% and the company has a beta coefficient of 1.5. The risk free rate of return is 4%. What is the expected rate of return for the shareholders of the company?

Q9. Avida Corp has a market capitalization of Php 4,760,680,000 and EBITDA multiple of 4.0 . Historically, the company has an after tax profit margin of 20%, before tax margin of 30%, EBITDA Margin of 50%. Avida Corp's Net Income before tax is?