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A stock will pay a dividend of $2.00 this coming year. The expected growth rate in dividends is 4% and the required rate of return is 12%. What is the indicated value of the common stock?
A firm's common stock just paid an annual dividend of $1.00 per share. The growth rate in dividends is 5% and the stock currently sells for $25.00. The firm's tax rate is 40%. Ignoring flotation cos
If the discount rate is 12%, the net present value of the investment is closest to? The payback period of this investment is closest to?
What is the yield on 1-year Treasury bills for dell? Using the historical equity risk premium at about 7%, what is the cost of equity for Dell using the CAPM?
Because the weighted average given is always correct in our examples the measure of a required return, why do firms not create securities to finance each project and offer them in the capital market
If the after-tax net cash inflow from these operations last year was $15,000, and if the total before-tax cash sales were $60,000, then the total before-tax cash expenses must have been.
What is the the relationship of Dell and its OEMs around world? why companies in computer hardware industry, exemplified by Apple and Dell, could achieve negative cash cycles hence huge cash flow ef
Which project has the highest ranking according to the net present value and the project profitability index criteria?
Klein corp can issue $1,000 par value bond that pays $100 per year in interest at a price of $980. The bond will have a 5 year life. The firm is in a 35% tax bracket. What is the after tax cost of
A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders' equity?
What will be the effect on the net present value of the decision to automate operations if 60,000 jars instead of 50,000 jars are expected to be sold each year?
If 40% of the funds are invested in stock A, and the rest in stock B, what is the expected return on the portfolio of stock A and stock B?
Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 20% and a risk-free asset with an interest rate of 4%; calculate the expected r
The company"s tax rate is 30% and its discount rate is 10%. The present value of the depreciation tax shield resulting from this deduction is closest to?
Project XYZ requires an investment in equipment of $600,000 to replace existing equipment. The existing equipment will produce after-tax salvage value of $70,000. Net working capital requirements ar
The company"s tax rate is 30% and its discount rate is 8%. The present value of the release of the working capital at the end of the project is closest to?
The exercise price on one of Flanagan Company's options is $15, its exrcise value is $22, and its time value is $5. What are the option's market value and the price of the stock?
At what discount rate would BT Company be indifferent between accepting or rejecting the project?
All sales were cash sales and all expenses were cash expenses. Moline"s tax rate is 30%. The after-tax net cash inflow was?
An investment project costs $10,000 and has annual cash flows of $2,600 for six years. What is the discounted payback period if the discount rate is 0%? What if the discount rate is 10%? If it is 1
Investment P offers to pay you $5,500 per year for nine years, whereas Investment T offer to pay $8000 per year for five years. Which of these cash flows streams has the higher present value if the
The company"s expenses were $400,000 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Seidelman last year was.
The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. What is the present value of the lease payments if the discount rate is 6%?
Assume that interest rates have increased substantially. Would this tend to increase or decrease the market value of a firm's liabilities (relative to the book value of liabilities)?
The annual payment under the lease will be $2,500, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to?