What is the present value of the technology

Assignment Help Financial Management

Reference no: EM131880662

Growing Perpetuities. Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $200,000, received two years from today. Subsequent annual cash flows will grow at 5 percent, in perpetuity. What is the present value of the technology if the discount rate is 10 percent? If the business is completely funded with equity, how much is the equity worth? If Weinstein held 50 percent of shares outstanding, how much would his shares be worth?

Reference no: EM131880662

Questions Cloud

Which voices of less educated groups have strongest impact : Which voices of less educated and lower-income groups do you think have the strongest impact on American opinions and on decision makers?

Dividend yield and equity cost of capital : its stock price is expected to grow to $23.97 at the end of the year, what is Krell's dividend yield and equity cost of capital?

How parents can be kept involved in their childs learning : A discussion of how parents can be kept involved in their child's learning once the child has been diagnosed by a physician, psychologist, or neuropsychologist.

Calculate the coefficient of determination : The following data is of the age of an item and the associated price of that item.

What is the present value of the technology : What is the present value of the technology if the discount rate is 10 percent? If the business is completely funded with equity, how much is the equity worth?

What is the amount that should be used to value inventory : Given the historical cost of product Z is $20, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z.

Construct a cumulative percentage histogram : a. Construct a cumulative percentage histogram. b. Calculate the mean of this set of data.

How do we still feel the effect of the industrial revolution : Pick one aspect from the Industrial Revolution ---- a person, invention. Explain how so. How do we still feel the effects of the Industrial Revolution?

Define factors that cause variable costs per unit to change : Identify some factors that might cause variable costs per unit to change if the actual level of activity in a given month falls above or below the relevant.

User Account

All Pages