User Account

All Pages

What is the value per share

Assignment Help Finance Basics
Reference no: EM132705425

-You have been asked to value a car dealership that has Free Cash Flow to the Firm projected at $350,000 for next year. This cash flow amount is expected to grow by 2% at the end of year 2 and every year thereafter. The appropriate risk adjusted discount rate is 8% and there are one million shares outstanding. What is the value per share?

-You are about to take over a local computer chip maker that has projected Free Cash Flow to the Firm of $19 million. This is expected to grow by 1% in the following year, and forever thereafter. The firm has borrowed heavily with a face value of non-callable bonds outstanding of $125 million (market value: $130 million). There is also an un-funded pension liability of $35 million that will need to be corrected. The appropriate risk adjusted annual discount rate is 10%.What is the value per share if there are 20 million shares outstanding?

Reference no: EM132705425

Questions Cloud

Rapidly evolving international environment : Are geopolitical trends still important in today's rapidly evolving international environment?
How metrics are used in company to support use of batch size : Defend your position on batch size and tell whether Economic Order Quantity (EOQ) is relevant to your selected company/industry.
Impact the international environment : Globalization continues to impact the international environment in a variety of ways to include social, political, technological, and cultural influences.
What is the amount of Lew expenses : If the activity is deemed to be a hobby, what is the amount of Lew's expenses (if any) from the activity that may be deducted
What is the value per share : You have been asked to value a car dealership that has Free Cash Flow to the Firm projected at $350,000 for next year. This cash flow amount is expected to grow
Describe how each of the team members can contribute : Describe how each of the team members can contribute to resolving the problems BHD are facing and Describe at least one possible solution for each problem
What is Ann home office deduction : Ann is a self-employed restaurant critic who does her work exclusively from a home office. What is Ann home office deduction
How is used in managerial decision-making : How is used in managerial decision-making? Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category.
Explain how the act affects organization security plan : Discuss how federal, state, and local law enforcement agencies enforce the act. Explain how the act affects an organization's security plan.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find net gain or loss after the given time period

Simulate the price of the stock for the next 90 days. You should also find net gain or loss after the 90 days. Using a data table in Excel.

  Amount of the expected disbursements for quarter

What is the amount of the expected disbursements for quarter two given the following expected quarterly sales?

  What is the amortization schedule of these sixty payments

Moulton Motors is advertising the following deal on a new Honda Civic: “Monthly Payments of $400.40 for the next 60 months and this beauty can be yours!” The sticker price of the car is $18,000. If you bought the car, what interest rate would you be ..

  Real interest rate unexpectedly falls

Suppose the real interest rate unexpectedly falls in the absence of other economic changes. What would you expect to happen to consumption.

  Organization reward structure

Describe the relationship between type of reward structure employed by an organization for its employees and employee effectiveness and work productivity.

  Treatment influences participants

You should use correlated designs (rather than independent designs) in all of the following situations EXCEPT:

  Determine the overall system reliability

A system consists of three subsystems in parallel. Subsystem A has a reliability of 0.98, subsystem B has a reliability of 0.85, and subsystem C has a reliability of 0.88. Calculate the overall system reliability.

  Yield to the ytm when you first bought the bond

Two years from now, the YTM on your bond has declined by 1%, and you decide to sell. What price will your bond sell for? What is the HPY on your investment? Compare this yield to the YTM when you first bought the bond. Why are they different?

  Determine the profit from an index arbitrage

If the stock index is at 148, the three-month futures price is 151, the dividend yield is 5 percent and the interest rate is 8 percent

  Describe a work related event or decision

Can you think of any circumstances in which it would be ethical? Can you imagine a situation in which you yourself would do something unethical?

  Compute the annual gain or loss for the second

Compute the annual gain or loss for the second year holding period.

  If interest rates remain unchanged what do you expect the

miller corporation has a premium bond making semiannual payments. the bond pays a coupon of 8 percent has a ytm of 6

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