Halliford Corporation expects to have earnings this coming year of $2.73 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 45% of its earnings. It will retain 21% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 18.1% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 10.3%, what price would you estimate for Halliford stock? The stock price will be $☐ (Round to the nearest cent.)

EmKay Inc. has $1,000,000 available to invest. It has narrowed its choices to two investments, and each is expected to generate income over a 10-year period. Investment A is expected to generate a net income of $100,000 at the end of year one with an annual increase of $20,000 each year in net annual income over the subsequent 9 years. Investment B is expected to generate a net income of $80,000 at the end of year one and the net annual income over each of the next 9 years is expected to be 20% larger than the previous year's net annual income. The company's TVOM is 8% per year compounded annually. a) b) c) any? Explain. Compute the present worth of the net income from Investment A over the 10-year period. Compute the present worth of the net income from Investment B over the 10-year period. Based on the above present worth calculations, which investment should EmKay, Inc. choose, if

Blessing Ltd., a manufacturing firm, is growing at a phenomenal rate of 20% due to its discovery of a new drug. Analysts believe this grow will last for four years. After that it is predicted the firm will grow by 10% per annum indefinitely. Last year Blessing Ltd. paid a dividend of GH¢10. Shareholders require 20% return on their investment in similar firms. Determine the value of Blessing Ltd.

An oil well is estimated to yield returns of $12,000 monthly (end of month) for eleven years. To develop the well, it is estimated that a company will have to spend $600,000 today, $250,000 in three years and $5,000 (for maintenance) at the beginning of the month for 6 years BUT starting in 3 years from today. If the company’s cost of capital (interest rate) is 14% compounded annually, what is the Net Present Value of this potential project?