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Get college assignment help at uniessay writers Tutor, Please help. Birdie Corp. will pay a dividend of $2.60 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever. If you want a 15 percent rate of return, how much will you pay for the stock? What if you want a 10 percent rate of return? What does this tell you about the relationship between the required return and the stock price?

You have been offered a job with an unusual bonus structure. If you stay with the company,you will get an extra $20,000 every five years, starting five years from now. What is the present value of this bonus if you plan to work for the company for 20 years and the annual discount rate is 6%?

File is attached 1103

1. Help jenny to forecast dividend payments for Reeby Sports and to estimate the value of the stock. You do not need to provide a single figure. For example, you may wish to calculate two figures, one on the assumption that the the opportunity for futher profitable investment is reduced in year 6 and another on the assumption that it is reduced in year 8. 2. How much of your estimate of the value of Reeby’s stock comes from the present value of growth opportunities?

Hi Tutor, This is my first time using the site. I am needing some guidance in Corporate Finance. I do not want the answers I just want some help in going the right direction. Below I have put the problems I have to do and I also put the numbers again with the formula I feelo should be used to solve them. If you could please tell me if that is the correct formula I would appreciate it then I will know if I am on the right track because I am a little confused. If these are not the right one could you please steer me in the right direction. The chapter is Chapter 7 in Essentials of Corporate Finance and the chapetr is called Equity Markets and Stock Valuations. Thanks in advance, Marie #4)dividend growth #8)constant growth #10)dividend growth #12)constant growth 4)Ziggs Corporation will pay a $3.85 per share dividend next year. The company pledges to increase its dividend by 4.75 percent per year, indefinitely. If you require a 12 percent return on your investment, how much will you pay for the company’s stock today? 8) Valuing Preferred Stock- Gesto, Inc., has an issue of preferred stock outstanding that pays a $4.50 dividend every year, in perpetuity. If this issue currently sells for $79.85 per share, what is the required return? 10) Growth Rates- The stock price of Jenkins Co. is $53. Investors require a 12 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.15 next year, what growth rate is expected for the company’s stock price? 12) Stock Valuation- Alexander Corp. will pay a dividend of $2.60 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever. If you want a 15 percent rate of return, how much will you pay for the stock? What if you want a 10 percent rate of return? What does this tell you about the relationship between the required return and the stock price?

what implication do you draw from the graph for mutual fund investors

Two months after the burglary of his personal residence, Eric is audited by the IRS. Among the items taken in the burglary was a shoe box containing approximately $50,000 in cash. Eric is the owner and operator of a cash-and-carry liquor store. Eric wonders why he was audited. Can you help explain?

Find the following, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding the differences. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can “override” the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.)

“A firm’s beta can be estimated from the slope of the characteristic line. The first step is to plot the return on the firm’s stock (y-axis) vs. the return on a broad market index (x-axis). Next, a regression line is estimated to find the slope. a. Go to finance.yahoo.com, enter the symbol for a company of your choice, and click on ” Get Quotes”. On the left-side menu, click on “Historical Prices), then enter starting and ending dates that correspond to the most recent two years. Selec the “Daily” option. Save the data to a spreadsheet b. Repeat the process to get comparable data for the S

Tutors, I was told to resubmit with a longer time. Here you go. Please help before I go crazy.Here is the assignment in a .doc and if you can send back in a .doc I would greatly appreciate it. Thanks,

Get college assignment help at uniessay writers Assessment of an Acquisition in Thailand Recall that Ben holt, Blade’s Chief financial officer has suggested to the board of directors that Blades proceed with the establishment of subsidiary in Thailand. Due to the high growth potential of the roller blade market in Thailand, his analyst suggests that the venture will be profitable. Specifically, his view is that blades should establish a subsidiary in Thailand to manufacture roller blades, whether an existing agreement with Entertainment Products ( a Thai retailer) is renewed or not. Under this agreement, Entertainment Products is committed to the purchase of 180,000 pairs of Speedos, Blades Primary product annually. The agreement was initially for 3 years and will expire 2 years from now. At this time the agreement may be renewed. Due to delivery delays, Entertainment Products has indicated that it will renew the agreement only if blades establish a subsidiary in Thailand. In this Case the price per pair of roller blades would be fixed at 4594 Thai Baht per pair. If blades decide not to renew the agreement, Entertainment Products has indicated that it would purchase only 5000 pairs of Speedos annually at prevailing market prices. According to Ben Holt’s analysis, renewing the agreement with entertainment products and establishing a subsidiary in Thailand will result in a net present value of $2,638,735. Conversely if the agreement is not renewed and a subsidiary is established, the resulting NPV is $8,746,688. Consequently, Holt has suggested to the board of directors that blades establish a subsidiary without renewing the existing agreement with Entertainment Products. Recently a Thai rollerblade manufacturer called Skates’n’Stuff contacted Holt regarding the potential sale of the company to Blades. Skates’n’Stuff entered the Thai roller blade market a decade ago and has generated a profit in every year of operation. Furthermore skates’n’stuff has established distribution channels in Thailand. Consequently if blades acquire the company, it could begin sales immediately and would not require an additional year to build the plant in Thailand. Initial forecasts indicate that blades would be able to sell 280,000 pairs of roller blades annually. These sales are incremental to the acquisition of skates’n’stuff. Furthermore, all sales resulting from the acquisition would be made to retailers in Thailand. Blades fixed expenses would be 20 million baht annually. Although Holt has not previously considered the acquisition of an existing business, he is now wondering whether acquiring Skates’n’Stuff may be better course of an action than building a subsidiary in Thailand. Holt is also aware of some disadvantages associated with such an acquisition. Skates’n’stuff CFO has indicated that he would be willing to accept a price of 1billon baht in payment for the company which is clearly more expensive than the 550 million baht outlay that would be required to establish a subsidiary in Thailand. However skates’n’stuff cfo has indicated that it is willing to negotiate. Furthermore, blades employ a high quality production process, which enables it to charge relatively high prices for roller blades produced in its plants. If blades acquires skates’n’stuff which uses an interior production process( resulting in lower quality roller blades) it would have to charge a lower price for the roller blades it produces there. Initial forecasts indicate that blades will be able to charge a price of 4500 Thai baht per pair of roller blades without affecting demand. However, because skates’n’stuff uses a production process that results in lower quality roller blades than the blade’s Speedos operating costs incurred would be similar to the amount incurred if blades establishes a subsidiary in Thailand. Thus blades estimate that it would incur operating costs of about 3500 baht per pair of roller blades. Ben Holt has asked you, a financial analyst for blades inc to determine whether the acquisition of skates’n’stuff is a better course of action for blades than the establishment of a subsidiary in Thailand. Acquiring skates’n’stuff will be more favourable than establishing a subsidiary if the present value of the cash flows generated by the company exceeds the purchase price by more than $8,746,688, the NPV of establishing a new subsidiary . Thus Holt has asked you to construct a spreadsheet that determines the NPV of the acquisition. To aid you in your analysis, Holt has provided the following additional information, which he gathered from various sources, including unaudited financial statements of skates’n’stuff for the last 3 year. • Blades Inc requires a return of the Thai acquisition of 25 percent, the same rate of return it would require if it established a subsidiary in Thailand. • If skates’n’stuff is acquired, blades Inc will operate the company for 10 years at which time skates’n’stuff will be sold for an estimated 1.1million baht • Of the 1 billion baht purchase price 600million baht constitutes the cost of the plant and equipment. These items are depreciated using straight line depreciation. Thus 60 million baht will be depreciated annually for 10 years. • Sales of 280,000 pairs of roller blades annually will begin immediately at price of 4500 baht per pair. Variable costs per pair of roller blades will be 3,500 per pair. Fixed operating costs, including salaries and administrative expenses, will be 20 million baht annually. • The current spot rate of the thai baht is $.023. Blades expects the Baht to depreciate by an average of 2% per year for the next 10 years. • The Thai government will impose a 25% tax on income and 10% withholding tax on any funds remitted by skates n stuff to blades inc. Any earning remitted to the United States will not be taxed again in the US. All earnings generated by Skates ‘n Stuff will be remitted to Blades Inc. • The average inflation rate in Thailand is expected to be 12% annually. Revenues, variable costs and fixed costs are subject to inflation and are expected to change by the same annual rate as the inflation rate. In addition to the info outlined above, Ben Holt has informed you Blades inc will need to manufacture all 180,000 pairs to be delivered to Entertainment Products this year and next year in Thailand. Since blades Previously only used components from Thailand ( which are of lower quality but cheaper than US components) sufficient to manufacture 72,000 pairs annually, it will incur cost savings of 32.4 million baht this year and next year. However since blades will sell 180,000 pairs of speedos annually to entertainment products this year and next year whether it acquires skates’n’stuff or not, Holt has urged you to not include these sales in your analysis. The agreement with Entertainment Products will not be renewed at the end of next year. Ben Holt would like you to answer the following Questions; Q1) Using spreadsheet deteremine NPV of the acquisition of Skates’n’Stuff. Based on your numerical analysis should blades establish a subsidiary in Thailand or acquire Skates’n’Stuff Q2) If blades negotiates with Skates nStuff what is the maximum amount (in Thai baht) blades should be willing to pay Q3) are there any other factors blades should consider in making decision? In your answers you should consider the price Skates’n’Stuff is asking relative to your analysis in q1, other potential business for sale in Thailand, the production process that will be employed by the target in the future , and the future management of Skates’n’Stuff

question: list all the key behavioral phenomena discussed or mentioned in the said case.

*MUST show all work* Collins Office Supplies is considering a more liberal credit policy to increase sales, but expects that 9 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production and selling costs are 78 percent, and accounts receivable turnover is 12 times. Assume income taxes of 39 percent and an increase in sales of $180,000 No other asset buildup will be required to service the new accounts. a What is the level of accounts receivable to support this sales expansion? b What would be Collins’s incremental aftertax return on investment? c Should Collins liberalize credit if a 18 percent aftertax return on investment is required? Assume Collins also needs to increase its level of inventory to support new sales and that inventory turnover is 4 times. d What would be the total incremental investment in accounts receivable and inventory to support a $180,000 increase in sales? e Given the income determined in part b and the investment determined in part d, should Collins extend more liberal credit terms? a. Answer b. Answer c. Answer d. Answer e. Answer

Staind, Inc., has 6 percent coupon bonds on the market that have 16 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8 percent, the current bond price is

Rodriguez Roofing’s stock has a beta of 1.23, its required return is 11.25%, and the risk-free rate is 4.30%. What is the required rate of return on the stock market? (Hint: First find the market risk premium.)

You have $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with beta 1.4. What will the portfolio’s new beta be after these transactions?

3. The Damman Corp. has the following investment opportunities. Vear Machine A ($15,000) Inflows Machine B ($22,500) Inflows Machine C ($37,500) Inflows 1 $6,000 $12,000 $-02 9,000 12,000 30,000 3 3,000 10,500 30,000 4 -010,500 15,000 5 -0- 015,000 Under the payback method and assuming these ffi.1chines are mutually exclusive, which machine(s) would Dammen Corp. choose? a. Mnchine A b. Machine B c. Machine C d. Machine A and B 4. You buy a new piece of equipment for $5,535, and you receive a cash inflow of $1,000 per year for 8 years. What is the internal rate of return? a. Less than 10 percent b. Between 10 percent and 11 percent c. Behveen 11 percent and 12 percent d. More than 12 percent 9. An asset fitting into the 5-year MACRS category was purchased 2 years ago for $60,000. The book value of this asset is now: a. $28,800. b. $31,200. c. $48,000. d. $60,000. 18. A correlation coefficient of provides the greatest risk reduction. •. 0 b. -1 c. 1 d. .5

Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the Year 0 value of operations, in millions? Year 1 2 3 __________________________________ FCF -$15.0 $10.0 $60.0 Correct Answer: $581.92

Reddick Enterprises’ stock currently sells for $40.50 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, r, is 9.00%. What is the stock’s expected price 3 years from today? Correct Answer: $47.56

Tom plans to sell Stock A and replace it with Stock E, which has a beta of 0.66. By how much will the portfolio beta change? Correct Answer: -0.320

Tutor, I need help with this please. The stock price of Sharpie Co. is $49. Investors require a 16 percent rate of return on similar stocks. If the company plans to pay a dividend of $2.15 next year, what growth rate is expected for the company’s stock price?

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November 3, 2019