User Account

All Pages

What is the resulting estimated intrinsic stock price

Assignment Help Accounting Basics
Reference no: EM132729333

Problem - Burns & Kennedy Corporation (BK) has a value of operations equal to $2,100, short-term investments of $100, debt of $200, and 100 shares of stock.

a. What is BK's estimated intrinsic stock price?

b. If BK converts its short-term investments to cash and pays a total of $100 in dividends, what is the resulting estimated intrinsic stock price?

c. If BK converts its short-term investments to cash and repurchases $100 of its stock, what is the resulting estimated intrinsic stock price and how many shares remain outstanding?

Reference no: EM132729333

Questions Cloud

Find what amount of interest revenue company report : Gaudreau Enterprises, What amount of interest revenue should the company report on its December 31, 20X3, year-end financial statements?
How large should Wei dividend payout ratio be next year : According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year
Compute what amount textron recognize as gross profit : Due to increasing costs of materials, What amount should Textron recognize as gross profit (the profit element) for the December 31, 20X2, fiscal year?
Some aspect of lockout and tagout : Lockout/Tagout Choose a journal article that addresses some aspect of lockout/tagout
What is the resulting estimated intrinsic stock price : If BK converts its short-term investments to cash and pays a total of $100 in dividends, what is the resulting estimated intrinsic stock price
What are the normal methods : Why did Square, Inc. go public? What are the normal methods, and normal costs of going public? How does the underwriting process used
Calculate the effective yield from a chilean peso deposit : Calculate the effective yield from a Chilean peso deposit with an interest rate of 10% p.a. and forecasted exchange rate changes with probability
What is the projected DPS : The company projects net income of $5 million. CMC uses the residual distribution model and pays all distributions in the form of dividends. What is project DPS
How much of the dividend will josh include in canadian : Canadian $5,500 and withholds Swedish taxes of Canadian $1,400. How much of the dividend will Josh include in his Canadian taxable income?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd