Answered: 7. G's Inc. has a net income of- 25M…

7. G's Inc. has a net income of- 25M and a cash dividend of 8M for the year 2020. Compute for the Pay-out and Plowback of the firm. *

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On December 2020, the company Psi SA is financed with debt and equity. This company has a cost of capital (WACC) equal to 12%. Also on December 2020, the company presented an EBIT equal to 1,500€, 350€ of amortization and 150€ of depreciation, and 300€ of corporate taxes. The company invested in fixed assets for 500€, and its working capital increased in 50€. After a decade of rapid growth, the cash flows in the last two years increased only at a constant rate of 2%, and it is expected that the cash flows will remain growing at this level in the future. Determine the value of the firm on December 2020.
Mf2. 12. Alpha company made sales of PKR 100 Mn in 2019 and expecting that company’s top line will increase by 10% in 2020. The management has controlled its overhead and operating expenses very well in the given year which will result in net margin of 15% . The company has 1 million outstanding shares and the management is expecting to pay 40% as cash dividend at the end of year. Based on the given data, calculate following: ● Net sales ● Net profit ● Earnings per share (EPS) ● Dividend per share 13. Refer Q12, P/E ratio is estimated to be 8 times for the year. Based on the provided data calculate the share price of the Alpha stock ?
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The annual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000. Evidently, the sales grew by 12% annually with a direct effect on the growth of free cash flow of 12% yearly. Last year, the free cash flow was reported to be P3,500,000. The weighted average cost of capital is 10%. Using the financial model, how much is the value of the equity?
10 Alawad Company’s capital employed on 1-1 2020 was OMR 150,000 and the profits for the last five years were as follows: Year 2015 OMR 10,000, Year 2016 OMR 20,000, Year 2017 OMR 10,000, Year 2018 OMR 25,000 and Year 2019 OMR 15,000. Calculate Super profit given that the normal rate of return is 5%. a. OMR 7,500 b. OMR 8,500 c. None of the options are correct d. OMR 16,000
Pls use formula to calculate r = (FV/PV)(1/t) - 1 (b)Shares in Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years. Calculate the rate of return
A transportation company needs to determine the cost of capital of its shares common. The company's stock is currently selling for $ 57.50. The company expects pay a dividend of $ 3.40 at the end of the year (2020). The following table shows the dividends of the last 5 years. Year Dividend2019 $ 3.102018 2.922017 2.602016 2.302015 2.12After administrative costs, the company expects to earn $ 52 per share from a new issue.a) Determine the growth rate of dividends from 2015 to 2019. (g =?)
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1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all…
Abl ltd. Paid a dividend of $250000 this year. The current return to shareholders of the companies in the same industry an Abl ltd. is 12%, although it is expected that an additional risk premium of 2% will be applicable to Abl ltd., being a smaller and unquoted company. Compute the expected valuation of Abl ltd., if : 1. The current level of dividend is expected to continue into the foreseeable future 2. The dividend is expected to grow at a rate of 4%pa into the foreseeable future 3. The dividend is expected to grow at a 3% rate for three years and 2% afterwards
ABC Co. its selected financial statements items are given as following. Total assets equals to 150.000 TL for the year 2020 and 125.000 TL for the year 2019. 2020 inflation rate for TL is %13. Calculate nominal and reel 3 - growth for the total assets for 2020. a) O Nominal Growth 20,30% , Reel Growth 6,19% b) O Nominal Growth 30,00%, Reel Growth 7,19% c) O Nominal Growth 20,00%, Reel Growth 6,19% d) O Nominal Growth 25,15%, Reel Growth 20 %

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