What is the market price of a share of stock

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1 ) A project has sales of $611,208, cash costs of $338,911, and depreciation expense of $74,209. The tax rate is 34 percent and the discount rate is 14 percent. What amount should be used as the depreciation tax shield when computing the project's operating cash flow?

2) The board of directors is dissatisfied with last year's ROE of 15%. If the profit margin and asset turnover ratio remain unchanged at 8% and 1.25, respectively, by how much must the leverage ratio (i.e., assets/equity) increase to achieve 20% ROE?

3) What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book value of equity of $3,000,000, and a market/book ratio of 3.0?

Reference no: EM132813943

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