Q: question 2,3,4
A: To determine the volume traded we need to look at the sales in the given table. To determine the…
Q: A 4-year project is expected to generate annual sales of 30,000 units at a price of $50.00 per unit…
A: ParticularsCash flow @VC of $38Cash flow @VC of $39i) Units30,00030,000ii) SP per unit5050iii) VC…
Q: A Japanese company has a bond that sells for 103.813 percent of its ¥100,000 par value. The bond has…
A: Yield to maturity considers the coupon payment along with the price of the bond. Yield to maturity…
Q: Your company has been approached to bid on a contract to sell 20,000 voice recognition (VR) computer…
A: The sales include 20000 plus additional sales each year. The selling price of additional sales is…
Q: Kurt has 25/50/20 auto insurance coverage. One evening he lost control of his vehicle, hitting a…
A: Let us first determine what the given numbers mean.The first number is 25 and means that Kurt will…
Q: Laura wants to buy a delivery truck. The truck costs $124,000 , and will allow her to increase her…
A: The term "net present value" is used in the capital budgeting concept, this technique is used for…
Q: On June 30, 2024, Georgia-Atlantic, Incorporated, leased warehouse equipment from IC Leasing…
A: Lease is a agreement between lessor and lessee where lessor allows lessee to use asset in exchange…
Q: How much could the Simpsons receive on a home equity line of credit on their home with a market…
A: We can determine the home equity line of credit using the formula below:
Q: -year mortgage is amortized by making paym nths. If interest is 8.45% compounded annually tgage…
A: Mortgage loans make home buying quite easy and convenient and mortgage loans are paid by equal…
Q: shareholders approve a 3-for-1 stock split on January 1, 2020. Douglas McDonnell Dynamics General…
A: Stock split:Stock split is typically done to increase the liquidity and affordability of the stock,…
Q: Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year…
A: An annuity is a method of fulfilling a financial goal for a specified period of time at a defined…
Q: lculate the compounding factor that would be used to determine the future value of an annuity for an…
A: In calculation of the future value of annuity we need future value annuity factors and these are…
Q: A bank developed a model for predicting the average checking and savings account balance as balance…
A: Bank balance is the amount of money in the account ,amount in bank depends on the age and education…
Q: An investor purchases a zero coupon bond with 17 years to maturity at a price of $430.93. The bond…
A: A bond is a financial instrument that represents a loan made by an investor to a borrower, typically…
Q: To increase its sales, a wholesale company offers its customers a promotion that consists of paying…
A: Company offers its customers a promotion that consists of paying only 30% of the value of the…
Q: Imagine a firm that plans to distribute a dividend of $5.00 next year. Due to financial issues, the…
A: Dividend in Year 1 = d1 = $5dividend in year 4 = d4 = $5Growth rate after year 4 = g = 0%Cost of…
Q: You apply for a mortgage loan on a $350,000 condo using 85% loar lue. Going interest rates are…
A: Loans are paid by monthly payments that carry the payment for interest and payment for the principal…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Here, Expected ReturnStandard DeviationStock Fund17%32%Bond Fund11%23%Risk Free…
Q: You bought one of Colton Manufacturing Companys 5.2 percent coupon bonds one year ago for $1,055.…
A: The real return on investment refers to the profits that an investor earns after they have been…
Q: pany Z-prime’s earnings and dividends per share are expected to grow by 3% a year. Its growth will…
A: We will use the dividend discount model approach here.As per the dividend discount model the price…
Q: 5. Compute the yield to maturity of a discount bond selling for $15,000.00 with a face value of…
A: Yield to maturity,YTM refers to the rat of return that an investors expects to earn if bonds or…
Q: What is the stock's expected return? Do not round intermediate calculations. Round your answer to…
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: Years until retirement Amount to withdraw each year $90,000 Years to withdraw in retirement 30…
A: Retirement income is the money one receives after they stop working, either through savings,…
Q: plan you to nancial planning service off a college savings program. make six annual payments of…
A: IRR is rate of return at present value of cash outflow is equal to present value of cash inflows and…
Q: Gail has won a lottery that pays her $100,000 at the end of this year and increases by 15 percent…
A: We are given the following information -Lottery payment$100,000Increase in lottery payment15%No. of…
Q: A firm has two classes of securities: long-term bonds and common stock. The bonds have 16 years to…
A: Value of debt = d = $749 millionNumber of Stock = n = 31 millionMarket price of stock = ps = $26
Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic…
A: The Net Present Value of a project is the present value of the project meaning the present value of…
Q: Calculate the bond equivalent yield and effective annual return on a negotiable CD that is 120 days…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: Suppose that in April 2019, Nike Inc. had sales of $36,367 million, EBITDA of $5,229 million, excess…
A: Here,Sales = $36,367millionEBITDA = $5229 millionExcess cash = $5238 millionDebt = $3804…
Q: Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation %…
A: Optimal Risky portfolio represents the portfolio on the efficient frontier that offers the highest…
Q: Information on four investment proposals is given below: Investment required Present value of cash…
A: The profitability index (PI), also known as the profit investment ratio (PIR) or value investment…
Q: Monty Inc. issues $1,800,000 of 7% bonds due in 10 years with interest payable at year-end. The…
A: The time value of money (TVM) is a fundamental financial principle that stipulates that a dollar…
Q: Duration of this bond years
A: We can determine the duration of the bond by rearranging the formula below:
Q: Find the present value of an annuity with annual payments of $1,100.00 compounded at the end of each…
A: Annual Payment = p = $1100Number of Payment = n = 8Time for first payment = t = 3Interest Rate = r =…
Q: msider an organization that has Earnings Before Tax of $100,000. Assume amortization ex organization…
A: Cash flow is the money available after making payment of all expenses including taxes and…
Q: Suppose that XTel currently is selling at $60 per share. You buy 1,000 shares using $48,000 of your…
A: Rate of return on investment (ROI) is a financial metric used to evaluate the profitability of an…
Q: Your broker has developed a list of firms, their betas, and the return he expects the stock to yield…
A: The expected return is the estimation of profit or loss that an investor determines from his…
Q: Flex Company just paid total dividends of $825,000 and reported additions to retained earnings of…
A: Stock Price = P/E Ratio x EPS
Q: 3M stock started the year at $146, and by the end of the year had increased to $174. 3M also paid $7…
A: The total gain and loss from selling a stock with respect to the price of buying a stock is known as…
Q: uppose you take a short position in 15-Russian ruble contracts at a price of $0.010125/RUB on the…
A: In short sell one does not hold position but promises to purchase later at down positions in the…
Q: How much money she will have when she retiared at age of 60, if she invested all her saving in an…
A: We need to break this question into 2. We need to determine the FV of $300 payments for 5 years at…
Q: Use the following formula for the operating income: Operating income = Interest revenue +…
A: Asset utilization ratio is an important ratio for banks. This ratio measures the average yield on…
Q: 7. An investment opportunity has an initial cost of $75,000 and is expected to lose $20,000 per year…
A: Present Worth refers to the discounted present value of the cash flow of the investment. This…
Q: Juanita has good credit and gets the lowest interest rate possible for her credit card. She has a…
A: periodic interest rates are fundamental in financial transactions, influencing both borrowing costs…
Q: DeChambeau Inc. has a $10,000 par value bond outstanding with a coupon rate of 4.7 percent paid…
A: Given:Face value = $10,000Coupon rate = 4.7%YTM = 4.4%Years to maturity = 9 yearsThe price of a bond…
Q: A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive…
A: Amount of loan would be the present value of payments done based on time and interest rate of the…
Q: The annual interest rate on a credit card is 17.99% if a payment of $400 00 is made each month, how…
A: Compound = monthly = 12Interest Rate = rate = 17.99 / 12 = 1.49916666667%Monthly Payment = pmt =…
Q: Tiger Woods was paid a $10 million advance to write a book, which took him one year to write.…
A: NPV is the difference between present value of cash flow and initial investment and it should be…
Q: Tear Price EPS CFPH SPE 2016 $91.60 4.49 7.72 47.60 2017 $97.50 5.20 8.60 52.60 2018 $96.20 6.00…
A: Share price:It represents the price at which investors are willing to buy or sell shares in the open…
Q: Mary's credit card situation is out of control because she cannot afford to make her monthly…
A: Credit card loans are unsecured loans extended by financial institutions to individuals. These loans…
Step by step
Solved in 3 steps with 3 images
- AYAYAI Ltd. had earnings per share of $5 as of December 31, 2022, but paid no dividends. Earnings were expected to grow at 14 percent per year for the following five years. AYAYAI Ltd. will start paying dividends for the first time on December 31, 2027, distributing 50 percent of its earnings to shareholders. Earnings growth will be 6 percent per year for the next six years (that is, from January 1, 2028, through to December 31, 2033). Starting on December 31, 2033, AYAYAI Ltd. will begin to pay out 80 percent of its earnings in dividends and earnings growth will stabilize at 2 percent per year in perpetuity.The required rate of return on AYAYAI stock is 10 percent. What should be the current share price of AYAYAI? (Round intermediate calculations to 6 decimal places, e.g. 15.612125 and the final answer to 2 decimal places, e.g. 15.61.) Current share price of AYAYAI $The common shareholders of BFG inc. received the following dividends (per share) in recent years: $0.10 in March 2019, $0.15 in March 2020, $0.15 in March 2021 and $0.20 in March 2022 (the dividend is still paid at the end of March). Dividend growth is expected to continue at the average historical rate for another four years. Thereafter, the dividend growth rate will be 5%. The rate of return demanded by the common shareholders of BFG inc. is 14%. Your valuation date is the beginning of April 2022. Calculate the average growth rate of the dividend per share over the last financial years, from March 2019 to March 2022 and calculate the price at which this common stock should sell based on the information provided to you.HEADLAND Ltd. had earnings per share of $4 as of December 31, 2022, but paid no dividends. Earnings were expected to grow at 16.1 percent per year for the following five years. HEADLAND Ltd. will start paying dividends for the first time on December 31, 2027, distributing 50 percent of its earnings to shareholders. Earnings growth will be 5 percent per year for the next six years (that is, from January 1, 2028, through to December 31, 2033). Starting on December 31, 2033, HEADLAND Ltd. will begin to pay out 80 percent of its earnings in dividends and earnings growth will stabilize at 2 percent per year in perpetuity.The required rate of return on HEADLAND stock is 10 percent. What should be the current share price of HEADLAND? (Round intermediate calculations to 6 decimal places, e.g. 15.612125 and the final answer to 2 decimal places, e.g. 15.61.) Current share price of HEADLAND $
- During the annual general meeting, the management team of HamstarCorporation has reported the annual dividend distributed from year 2019 to 2022. In last year (year 2020), the annual dividend has been increased by RM0.30 . As the management team foresees that the company profit would be increased by 50%, they plan to increase the annual dividend by more than RM0.30 for this year and the year afterwards. The detail of the annual dividends is as following: Year Dividend Amount 2019 RM1.50 2020 RM1.80 2021 Rm2.30 2022 RM2.70 Start from 2023onwards, Hamstar Corporation will have an annual growth rate of 5 percent consistently for the dividend. Using the appropriate dividend Valuation Model, calculate the intrinsic value of Hamstar Corporation. Assume that the required rate of return is 10percent.CEPS Group announced today that it will begin paying annual dividends next year. The first dividend will be OMR 0.65 a share. The following dividends will be OMR 0.72, OMR 0.85, OMR 0.89, and OMR 0.95 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 11.5 percent?Today is January 1, 2024 (DO). Ninja Co. will be ex-dividend tomorrow and pay a dividend of $25 next week. The dividend is expected to increase by 7 percent each year over the following three years (2025 (D1), 2026 (D2) and 2027 (D3)) and starting in 2028 (D4) grow at an annual rate of 10 percent forever. You expect a 19 percent return on your invested capital. a. What price would you pay for a share in this company? (Do not round "PV factor" and other intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Price $ 282.99 b. What price would you pay for a share in this company tomorrow? (Do not round "PV factor" and other intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Price 282.99
- At the end of 2020, CVN ltd. had 120,000 shares of common stock outstanding and had earnings availablefor common of $300,000. TPO ltd., at the end of 2020, had 15,000 shares of common stock outstanding andhad earned $28,000 for common shareholders. CVN’s earnings are expected to grow at an annual rate of 6%in next 6 years, and TPO’s growth rate in earnings would be 12% per year in next 6 years. Calculate earnings per share (EPS) for CVN and TPO for year 2020 and each of the next 6 years if CVNacquires TPO at a ratio of exchange of 1.3. Describe the initial effect and long run effect on EPS of CVN and TPO. Does merger look beneficial forCVN and TPO? Why or why not?9. CEPS Group announced today that it will begin paying annual dividends next year. The firstdividend will be OMR 0.65 a share. The following dividends will be OMR 0.72, OMR 0.85,OMR 0.89, and OMR 0.95 a share annually for the following 4 years, respectively. After that,dividends are projected to increase by 4 percent per year. How much are you willing to pay tobuy one share of this stock today if your desired rate of return is 11.5 percent? notes: show all calculationBulawayo Products Company anticipates reaching a sales level of Sh.6 million in one year.The company expects earnings after taxes during the next year to equal Sh.400,000. During thepast several years, the company has been paying Sh.50,000 in dividends to its stockholders. Thecompany expects to continue this policy for at least the next year. The actual balance sheet andincome statement for Baldwin during 2019 follow.Bulawayo Products Company Balance Sheet as of December 31, 2019Cash Sh. 200,000 Accounts payable Sh. 600,000Accounts receivable 400,000 Notes payable 500,000Inventories 1,200,000 Long-term debt 200,000Fixed assets, net 500,000 Stockholders’ equity 1,000,000Total assets Sh.2,300,000 Total liabilities and equity Sh. 2,300,000Income Statement for the year Ending December 31, 2019Sales Sh. 4,000,000Expenses, including interest and taxes Sh.3,700,000Earnings after taxes Sh. 300,000Required:a) Using the percentage of sales method, calculate the additional financing…
- JBY Company’s policy is to declare 25% of earnings as dividends to shareholders. At the end of 2022, the Company’s earnings per share (EPS) is 10.00php. Earnings is expected to grow next year to 12.00. Dividends are subject to 10% tax and inflation rate is 3.00%. Cost of Equity is 27%. Question: What is the JBY average dividend per share?North Side Corporation is expected to increase its dividends at 8 percent (annual) rate over the next three years. If the company’s most recent dividend was $1.6, what are dividends for year 1, year 2 and year 3?The Link Resport & Spa Company has 75,000 shares of stock outstanding. The company is expected to have total earnings next year of $500,000. The company plans to reinvest $275,000 in projects earning an (equity) return of 15%, and to return the remainder of its earnings to shareholders in the form of dividends or stock repurchases. The first dividend or repurchse payments will be made exactly one year from today. In all future years, the market expects the company's reinvestment rate and the return on reinvested earnings to remain constant. The required return on equity is 12%. What is the value of the firm today, if it 1.) uses the remaining $225,000 to pay dividends, and will continue this payout policy (as a percent of earnings) in future years? 2) uses 40% of its annual payout to repurchase stock, and uses the remainder to pay divdends (and will continue this policy in future years)? Assume that the firm will use the remaining $225,000 to pay dividends (and will continue this…