User Account

All Pages

What is the return on investment on google projects

Assignment Help Finance Basics
Reference no: EM133120930

Here is current information about Google:

Price per share  2582.69

P/E ratio (E=earnings per share estimated for next year): 19

Discount rate: 12%

Assume that the assumptions of our model in class apply to Google.

  1. Estimate the value (per share) of Google, attributed to its earnings from current assets and the value attributed to its PVGO.
  2. Google reinvests 30% of its earnings every year and pays out 70% of its earnings. What is the growth rate of Google's earnings as implied by its price?
  3. What is the return on investment on Google's projects?
  4. Google is considering paying more cash to its shareholders. Assuming that Google is going to change its policy and pay out 80% of its earnings, What should be the new price of Google? Is changing the policy a good idea? Why?

Reference no: EM133120930

Questions Cloud

Frictions in capital markets : G&G Limited has $100 millions in cash and the following capital structure: Security Beta Total Market Value ($ millions) Debt =0(beta ßd) 40 Common stock 1.20(b
What coupon rate should be applied to the new bonds : Vitality Vancouver Inc. (VVI) has recently raised debt capital through long-term financing. The bond indenture includes issuing 8% coupon bonds on the market th
Time value of money concept : Assume that your aunt recently gifted you $12,000. You are both excited and worried about what to do with the money. You evaluated your options and came up with
What is the necessary and valid data : What is the external context that might affect the decision? Who are the main characters and protagonists of the case study, what are their functions?
What is the return on investment on google projects : Google reinvests 30% of its earnings every year and pays out 70% of its earnings. What is the growth rate of Google's earnings as implied by its price?
What must the coupon rate be on these bonds : DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, What must the coupon rate be on these bonds
What is the break-even point in sales dollars : Total monthly fixed costs are expected to be $15,000. What is the break-even point in sales dollars at the expected sales mix
Name two specific types of accounts payable : Accounts payable are amounts owed by an organization that have not yet been paid. Name two specific types of accounts payable.
Financial objectives of a not-for-profit organization : Compare and contrast the financial objectives of a stock exchange-listed company and the financial objectives of a not-for-profit organization such as a large c

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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