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Get college assignment help at uniessay writers Where appropriate show computations. 4. Sara Shouppe has invested $100,000 in an account at her local bank. The bank will pay her a constant amount each year for 6 years, starting one year from today, and the account’s balance will be 0 at the end of the sixth year. If the bank has promised Ms. Shouppe a 10% return, how much will they have to pay him each year? 5. If Allison has saved $1,000,000 upon retirement, how much can she live on each year if she can earn 5% per year and will end with $0 when she expects to die 25 years after retirement? A. $295,334 B. $20,953 C. $371,885 D. $70,952 6. Sponge Bob will receive a payment of $5,000 per year for 7 years beginning three years from today. At a discount rate of 9 percent, what is the present value of this deferred annuity?

Find the closest break-even discount rate (IRR) for the following project. The project costs $70,000 today and produces an incremental after-tax cash flow of $9,000 for each of the next 12 years.

Determine the revenue variance from Arcadia Hospital’s 2005 budget. Address the following: Is the variance positive or negative? Which is desirable, a positive or negative variance? Why? What do you think are some of the possible causes for this variance? How would you adjust Arcadia Hospital’s 2006 budget in light of your variance analysis? Explain your answer. Please help as I am confused. Thank you

You are an analysts comparing the performance of two portfolio managers using the Sharpe Ratio measurement. Manager A shows a return of 16% with a standard deviation of 10%. Manager B shows a return of 11% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

Haig Aircraft is considering a project which has an up-front cost paid today at t = 0. The project will generate positive cash flows of $60,000 a year at the end of each of the next five years. The project’s NPV is $75,000 and the company’s WACC is 10 percent. What is the project’s simple, regular payback?

Ziggs co. will pay $3.85 per shaqre dividend next year. Company pledges to increase its dividends by 4.75% per year indefinitely. If I require a 12% return on my investment, how much will I pay for the company’s stock today?

What does it mean if a domestic mutual fund has a beta coefficient of 1.25, an alpha coefficient of 2.25 and an R-Square of 75. Explain each measurement and then interpret what these measurements mean for this mutual fund.

ABC Corporation has $50,000 which it plans to invest in marketable securities. The corporation is choosing betweeen the following three equally risky securities: Spartan County tax-free municipal bonds yielding 8 percent; Ford bonds yielding 11.5 percent; GE preferred stock with a dividend yield of 12 percent. ABC’s corporate tax rate is 35 percent. What is the after-tax return on the best investment alternative? (Assuming the company chooses the basis of after-tax returns).”

1.What is the value of a stock with a $2 dividend just paid and an 8% required return with 0% growth? b. What is the value of a stock with a $3 dividend just paid and a 9% required return with 1% growth? c. What is the value of a stock with a $4 dividend to be paid and a 10% required return with 2% growth? d. What is the value of a stock with a $5 dividend to be paid and a 11% required return with 3% growth? 2. What is the required rate of return on a stock with a $1.5 expected dividend and a $19 price with 7% growth b. What is the required rate of return on a stock with a $1.75 expected dividend and a $25 price with 8% growth? c. What is the required rate of return on a stock with a $2 expected dividend and a $26 price with 9% growth? d. What is the required rate of return on a stock with a $2.25 expected dividend and a $33 price with 10% growth?

3. What is the growth rate of the stock with a $2.50 expected dividend and a $30.60 price with 15% required return? b. What is the growth rate of the stock with a $2 expected dividend and a $25.35 price with 12% required return? c. What is the growth rate of the stock with a $3 expected dividend and a $10.40 price with 11% required return? d. What is the growth rate of the stock with a $1.77 expected dividend and a $50.20 price with 14% required return? 4. What is the value of a stock with high growth then constant growth, dividends of $1.50, $3.00, and $6.00, constant growth at 4% and a required return of 6%? b. What is the value of a stock with high growth then constant growth, dividends of $2.50, $3.50, and $5.00, constant growth at 3.5% and a required return of 8%? c. What is the value of a stock with high growth then constant growth, dividends of $1.50, $3.00, and $6.00, constant growth at 5% and a required return of 10%? d. What is the value of a stock with high growth then constant growth, dividends of $2.50, $3.50, and $5.00, constant growth at 7% and a required return of 12%?

Get college assignment help at uniessay writers P9-12 NPV versus IRR [LO1, 5] Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$43,000 –$43,000 1 23,000 7,000 2 17,900 13,800 3 12,400 24,000 4 9,400 26,000 Required: (a) The IRR for Projects A and B is _____percent and ____percent respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) (b) If the required return is 11 percent, the NPV for Projects A and B is $ ____and $_____, respectively. You will choose Project B if you apply the NPV decision rule. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)) (c) At a discount rate of _____percent, you would be indifferent between these two projects. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g. 32.16)

Hey there, I have spent several dollars with this site, could you please answer these next 2 questions in the same reply of attachment within the next 15 minutes? Thank you very much. 1. Constant growth stock. Tha last dividend paid by XYZ Company was $1.00. XYZs growth rate is expected to be a constant 5 percent. XYZs required rate of return on equity (ks) is 10 percent. What is the current price of XYZ’s common stock? 2. As the director of capital budgeting for Bingo Corporation, you are evaluating two mutually exclusive projects with net cash flow. Cash Flow A B -150,000 -225.000 1) 55,000 85,000 2) 70,000 55,000 3) 70,000 65,000 4) 75,000 55,000 5) 80,000 65,000 If Bingo Corporation cost of capital is 10%, defend which project would you choose.

P9-10 Calculating IRR [LO5] The IRR for the following set of cash flows is ____percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) Year Cash Flow 0 −$19,500 1 9,800 2 10,300 3 8,600

Calculating Payback [LO2] An investment project provides cash inflows of $765 per year for eight years. If the initial cost is $2,400, the project payback period is 3.14 years. If the initial cost is $3,600, the project payback period is 4.71 years. If the initial cost is $6,500, the project payback period is ______ years. (Enter 0 when there is no payback period. Round your answers to 2 decimal places. (e.g., 32.16))

What is the value of a stock with a $2 dividend just paid and an 8% required return with 0% growth? Can you also give me the formula used to solve this problem. Thank you.

. Scholastic Toys is considering developing and distributing a new board game for children. The project is similar in risk to the firm’s current operations. The firm maintains a debt-equity ratio of 0.40 and retains all profits to fund the firm’s rapid growth. How should the firm determine its cost of equity? A. by adding the market risk premium to the aftertax cost of debt B. by multiplying the market risk premium by (1 – 0.40) C. by using the dividend growth model D. by using the capital asset pricing model E. by averaging the costs based on the dividend growth model and the capital asset pricing model

. If the economy is normal, Charleston Freight stock is expected to return 15.7 percent. If the economy falls into a recession, the stock’s return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. What is the variance of the returns on this stock? A. 0.010346 B. 0.011925 C. 0.013420 D. 0.013927 E. 0.014315

The lower the discount rate, the lower the present value of a future cash flow. True False

The future value technique uses discounting to find the future value of each cash flow at the end of the project’s life. True False

The present value of a perpetuity is the promised constant cash payment divided by the interest rate (i). True False

You are an upper-level manager in a company. Which financial ratios would you consider the most useful? Would these ratios be different than the ones you would consider useful as an investor? Why or why not?

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November 3, 2019