Blossom Political Consultants management has decided to discontinue all of the firm's business operations. The firm has total debt of $5.90 million, and the liquidation value of its assets is $11.00 million. If the book value of the firm's equity is $5.50 million, then what will be the amount of the liquidating dividend when the firm liquidates all of its assets? (Round answer to 2 decimal places, e.g. 15.25.)

S The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $17.50, all of which was reinvested in the company. The firm's expected ROE for the next five years is 17% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm's ROE on new investments is expected to fall to 12%, and the company is expected to start paying out 45% of its earnings in cash dividends, which it will continue to do forever after. DEQS's market capitalization rate is 24% per year. Required: a. What is your estimate of DEQS's intrinsic value per share? b. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year? c. What do you expect to happen to price in the following year? d. What is your estimate of DEQS's intrinsic value per share if you expected DEQS to pay out only 25% of…

Once Bitten Corp. uses no debt. The weighted average cost of capital is 9 percent. If the company's EBIT is $1,980,000 in perpetuity and there are no taxes, what is the company worth? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Note: For simplicity, in this chapter we typically assume that net capital spending equals depreciation, and net working capital remains constant. This means that EBIT (net of any taxes) will equal CFFA. Company's Value %24

Edwards Construction currently has debt outstanding with a market value of $155,000 and a cost of 10 percent. The company has EBIT of $15,500 that is expected to continue in perpetuity. Assume there are no taxes. a-1. What is the value of the company's equity? (Do not round intermediate calculations. Leave no cell blank - be certain to enter "0" wherever required.) a- What is the debt-to-value ratio? (Do not round intermediate calculations and round 2. your answer to the nearest whole number, e.g., 32.) b. What are the equity value and debt-to-value ratio if the company's growth rate is 5 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.) c. What are the equity value and debt-to-value ratio if the company's growth rate is 7 percent? (Do not round intermediate calculations and round your "Debt-to- value" answer to 3 decimal places, e.g., 32.161.)

Morgan Stanley has a current cash flow (at time 0) of $3.4 m and pays no dividends. The present value of the company's future cash flows is $14.6 m. The firm is entirely financed with equity and has 400,000 shares outstanding. Assume the dividend tax rate is zero. a. What is the share price of Morgan Stanley stock? b. Suppose the board of directors of Morgan Stanley announces its plan to payout 40% of its current cash flow as dividends to its shareholders. How can Andy, who owns 800 shares of Morgan Stanley stock, achieve a zero payout policy on his own? formulation: DPS= Tol Div (or excess cash) / No. of share [for unlevered firm] Share price = V/no. of share P ex-div = P - DPS EPS= Earnings (assume a constant) / no. of share P.E. = stock price/ EPS No. of share repurchase = Excess Cash / Stock Price

A firm is valued at $223, including $58 of cash. The firm is 45% debt financed and the remainder equity. Rather than pay the cash to shareholders, management decides to overpay for an acquisition. (This will increase firm revenues and management will get a nice bonus.) The firm uses $42 cash to buy $31 of corporate assets. (It overpaid for the assets.) What is the percentage decline in the value of the shareholders' claim? Give your answer to the nearest 0.1%. The answer is 9.0

7. J Peterman Corp. has $425,000 of assets, and it does not use any debt to finance their operations. Peterman's sales for the last year were $625,000, and its net income was $50,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 20%. What profit margin would the firm need in order to achieve the 20% ROE, holding everything else constant? (2 points)

I need help with this question in the picture, please. (7-11)

Meman

Compost Science Incorporated (CSI) is in the business of converting Boston's sewage sludge into fertilizer. The business is not in itself very profitable. However, to induce CSI to remain in business, the Metropolitan District Commission (MDC) has agreed to pay whatever amount is necessary to yield CSI a 15% book return on equity. At the end of the year, CSI is expected to pay a $4 dividend. It has been reinvesting 30% of earnings and growing at 4% a year. a-1. Suppose CSI continues on this growth trend. What is the expected long-run rate of return from purchasing the stock at $100? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number. a-2. What part of the $100 price is attributable to the present value of growth opportunities? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Now the MDC announces a plan for CSI to treat Cambridge sewage. CSI's plant will, therefore, be expanded…