A stock just paid a dividend of $1. The required rate of return is rs = 11%, and the constant growth rate is 5%. What is the current stock price?
how the blades will accept the negative impact of inflation in Thailand if the Thai consumer renewed commitment for the next three years?
please give me an example of a company using mirr irr and npv and also provide the information of the company's project oppotunities
You asked: "CASE: Electronic Timing, Inc. Electronic Timing, Inc. (ETI), is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently...
The Analytical Option Pricing Model The market index currently stands at 650 and has a volatility of 30 percent per annum. The risk- free rate of interest is 6 percent per annum and the index provides a divided yield of 3 percent per annum. Calculate the value of a three-month European put...
The Bionomial Pricing Option Model Calculate the price of a six-month Americal call option on gold futures when the current futures prices is $260 per troy ounce, the strike price is $270, the risk-free is 8 percent per annum, and the volatility is 30 percent per annum. Using the bionomial...
The Lashgari Company is expected to pay a dividend of $1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company's beta is 1.2, the market risk premium is 5%, and the risk-free rate is 3%. What is the...
microsoft excel 2007
1. The term "spontaneously generated funds" generally refers to increases in the cash account that result from growth in sales, assuming the firm is operating with a positive profit margin. a. True b. False
"You have been following the shares of Alcoa, a major aluminum producer. It is currently the beginning of December and three weeks before an anticipated strike in the aluminum industry. Alco stock is traded at 55 7/8. You anticipate a moderate fall towards the end of the month. Therefore...
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1. Can you help me with this valuation problem?: Imagine that you are trying to evaluate the economics of purchasing an automobile. You expect the car to provide annual after-tax cash benefits of $1,200 at the end of each year and assume that you can sell the car for after-tax proceeds of $5,000 at the end of the planned 5-year ownership period. All funds for purchasing the car will be drawn from your savings, which are currently earning 6% after taxes.
- a.Identify the cash flows, their timing, and the required return applicable to valuing the car.
- b.What is the maximum price you would be willing to pay to acquire the car? Explain.
2. How do you calculate the before tax-cost of the Sony bond and the after-tax cost of the Sony bond given the following information?:
- David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security:
- Sony bond
- Par value $1,000 Coupon interest rate 6% Tax bracket 20%
- Cost $930 Years to maturity 10