Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Company XYZ's stock sells for $30.00; its next expected dividend is $1.55; and analysts expect its growth rate to be 4.25%. Based on the DCF method, what is the minimum rate of return that should be earned on retained earnings to justify plowing earnings back into the business rather than paying them out to shareholders as dividends?
2. Sammy is the CEO of Company XYZ. He estimates that the risk premium should be 4.5%. Company XYZ's bonds yield 9.25%. Using the bond-yield-plus-risk-premium approach, what is the firm's cost of equity?
3. Company XYZ doesn't have any preferred stock outstanding, but plans to issue some in the future and therefore has included it in its target capital structure. Company XYZ would sell this stock to a few large hedge funds, the stock would have a $3.75 dividend per share, and it would be priced at $91.75 a share. What would be Company XYZ's cost of preferred stock?
4. Assume Company XYZ can borrow at an interest rate of 6.5%, and its marginal federal-plus-state tax rate is 37%. What will be the after-tax cost of debt for the company?
Using a tree diagram calculate the value of the European Call option with a strike price of 100?
A retirement home at Deer Trail Estates now costs $185,000. Inflation is expected to cause this price to increase at 6% annually over the next 20 years. How large an equal, annual, end –of-year deposit must be made each year into an account paying an..
If the risk-free rate is 2% which portfolio is optimal?
The analyst should be careful when evaluating a ratio analysis that: a. the dates of the financial statements being compared are the same b. pre-audited statements are used c. neither a or b d. both a and b
Based on the empirical evidence on group specific employer mandates described in the text, what do you expect to happen to the relative wages of men and women in the state?
Sky High Co. just paid a dividend of $2.0 per share on its stock. The dividends are expected to grow at a constant rate of 2 percent per year indefinitely.
Calculate the covariance between two assets. Assume the mean return on Asset A is 8% and the mean return on Asset B is 12%.
What is hedging and how is it different from diversification? If firm needs to manage its risk, will you recommend diversification or hedging?
You have a treasury bond that pays $100 one year from today and $1,100 two years from today. You notice that the yield-to-maturity on a one year-zero coupon treasury bond is 1% and the yield-to-maturity on a two year-zero coupon treasury bond is 2%. ..
Suppose that the consensus forecast of security analysts of your favourite company is that earnings next year will be E1 = $5.00 per share. Suppose that the company tends to plow back 50% of its earnings and pay the rest as dividends.
A company has total book value of common stock equal to $850,000, a par value of $3 per share, 50,000 shares issued and outstanding, and the market value of the common stock is $80 a share. What is the company's market capitalization?
These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd