use the​ dividend-discount model to estimate its value per share at the end of 2018.

Q: ecrease the per-share book value of the stock held by shareholders b. To increase the per-share p...

A: A share repurchase may have an impact on a company's BVPS. Because BVPS is used to calculate the pri...

Q: Discuss the advantages and disadvantages of using (a) payback, (b) net present value and (c ) intern...

A: Payback Period: It refers to the period in which the project's or investment's initial cost is reco...

Q: Internal rate of return % If the required return is 15 percent, should the firm accept the project?

A: IRR is the rate of return at which the NPV of the project becomes zero. If the required return from ...

Q: A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repea...

A: Honor Code: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answe...

Q: Ten years ago you borrowed $300,000 to finance the purchase of a $350,000 house. The interest rate o...

A: Let's find the initial monthly payment first. Let X = Initial monthly payment Initial loan (L) = $30...

Q: The matrix below contains payoffs and their associated probabilities for four alternative investment...

A: We need to find the addition of probabilities with payoff matrix for all investments to find the exp...

Q: If someone computes for the MARR using AW Method and AW becomes positive at a certain fixed interest...

A: The minimum acceptable rate of return (MARR) is the minimum rate of return on an investment that is ...

Q: You are required to assess whether the decision to renovate will be profitable by using a BCR.

A: Benefit-cost ratio (BCR) refers to the ratio which shows the relationship between present value of b...

Q: You are considering a loan with an annual rate of 8%. The mortgage is $130,000 with 180 monthly paym...

A: Payment Number Interest Payable Principal Payment Balance of Loan 1 ($130000.00*8%*1/12) ($1242.35...

Q: Anna loaned P450,000 at 10% compounded annually. She signed a contract to repay the loan in 20 equal...

A: Loan amount (PV) = P450,000 Number of annual payment (n) = 20 Interest rate (r) = 10%

Q: you would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $3...

A: Ask rate is market selling  rate. Bid rate is the rate at which market buys.

Q: Discuss the issues encountered in Worldcom scandal how the Sarbanes Oxley Act addressed those issues...

A:   What was the WorldCom scandal? It was the major Accounting related scandal in history in 2002 at W...

Q: You invest in a 55 month $5,163 zero-coupon corporate bond at a simple discount rate of 9.73 per yea...

A: Simple discount is straight discount on bond and that deduction from face value would give the price...

Q: Is estate tax a type of debt? What happens if a person doesn't pay estate tax?

A: The estate tax is a tax imposed after a person's death on the transfer of property and other assets....

Q: Procter and Gamble​ (PG) paid an annual dividend of $2.79 in 2018. You expect PG to increase its div...

A: Share prices fluctuate on a regular basis due to market factors and internal factors. Interest rate,...

Q: A piece of machinery costs $7000 and has an anticipated $1200 salvage value at the end of its five-y...

A: Depreciation is the allocation of cost of asset over the useful life of the asset, because fixed ass...

Q: Acme Food Co. Ltd. is considering the introduction of a new product Smackers. The firm has gathered ...

A: NPV Net present value (NPV) is the present value of all cash inflows less the present value of cash ...

Q: An rrsp is now worth $229,000 after contributions of $3000 at the beginning of every six months for ...

A: Worth of rrsp"Future Value" is $229,000 Paymant type is begining of the period. Semi annual Contribu...

Q: Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to ...

A: As per Bartleby Honor Code, when a question with multiple sub-parts has been asked, the expert is re...

Q: IL PROBLEM SOLVING 1. An equipment costing P250. 000 has an estimated life of 15 years with a bok va...

A: Declining balance method of depreciation It is one of the depreciation method to compute annual depr...

Q: st rates in the U.S. andeuro are 4% and 6% respectively and the spot rate for Euro ($/€) is $1.1550,...

A: According to interest rate parity the forward rate and spot exchange rate both should be in equilibr...

Q: During four years of college, Nolan MacGregor's student loans are S4,300, S4,300, S4,200, and $3,800...

A: Time Period 4 1st Loan Amount  $                        4,300.00 2nd Loan Amount  $             ...

Q: I and Mrs. Dafoe are doing some estimates of the amount of funds they purchase an annuity paying S50...

A: Present value of monthly annuity would be the amount required to purchase the annuity considering ti...

Q: Recommend wl decisions.

A: Profitability index is a calculation that divides the current value of expected anticipated cash str...

Q: Wally and Paolo are bestfriends. Wally desires Paolo to receive 200000 in twelve years. What should ...

A: We need to use future value  formula to calculate the amount to be invested today. PV =FV(1+r)n wher...

Q: You are planning to save for retirement over the next 35 years. To do this you will invest $710 per ...

A: The deposits of $710 and $310 made in two accounts will be considered annuity as amount is same over...

Q: risk transformtion in banks

A: Risk is a term that is used for defining the uncertainty arising in the future from changes in expec...

Q: The rabbit population at the city park increases by 9% per year. If there are intially 276 rabbits i...

A: Initial rabbit population is 276 rabbits Growth rate in population is 9% per year To Find: Model fo...

Q: Mega lotteries in country X pay out $1 million jackpots in the form of ordinary annuity of $5,000 ov...

A: Ordinary Annuity = $5,000 Time period = 2000 months Lump sum = $600,000  Discount rate = 8% APR

Q: What is a stock's realized abnormal return if the stock had a 3% return and the stock had a Beta=1.2...

A: Realized return Realized return is referred to as the actual return earned by the stock and is also ...

Q: Calculate the Forward Contract Value of an asset with the following data points: • Current Spot Pric...

A: The spot price plus carrying cost and interest is known as forward price. Under forward contracts lo...

Q: A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repea...

A: Given, Project A and Project B with the cash flows. The WACC is 12%.

Q: During the month of January, direct labor cost totaled PhP850,000 and direct labor cost was 60% of p...

A: Labor cost = Php 850,000 Labor cost ratio in prime cost = 60% Prime cost = 850,000/0.60 = Php. 14166...

Q: Which of the following statements is TRUE? When EBIT and total assets both increase by 25%, the basi...

A: The question is related to identifying the true Statement. 

Q: Seven years ago the Templeton Company issued 15-year bonds with an 11% annual coupon rate at their $...

A: The return that investor can gets from keeping a bond in his portfolio till the issuer redeems it be...

Q: Charmaine has just purchased an apartment at a price of $10 million. She made a down- payment of $4 ...

A: Loan amount (L) = $6 million n = 15 years = 180 months r = 3% per annum = 0.25% per month Let M = Mo...

Q: Four years ago, Vulcan Ltd. issued a 20-year $1000 par value bond that pays $40 semi-annual coupon p...

A: Solution:- Bonds are the debts raised by the coupon. Bond holders are paid a fixed coupon periodical...

Q: ERR

A: ERR refers to the interest rate at which the cash outflows and cash inflows of the project discounte...

Q: hat type of financial challenges is most important for Chief Financial Officers (CFOs) to address im...

A: CFOs of different companies are regularly grappling with some or the other types of financial challe...

Q: The number of stock exchange/s in the Philippines. Zero O One O Two Five

A: Stock exchange is a market where stock are brought and sold.  

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple inte...

A: We need to use simple interest formula to calculate the simple interest. The formula is Simple inter...

Q: Do you think investors should practice dollar cost averaging when investing their money? Why or why ...

A: Dollar-Cost Averaging: Dollar-Cost averaging is an investment approach that involves investing an an...

Q: Q2. X Company has the following receivables classified into individually significant and all other r...

A: Impairment in assets is the condition where the market value of the assets is less than the value pr...

Q: a. What is Ambeon's weighted average cost of capital? b. If Ambeon's stock price were to rise such t...

A: Weighted average cost of capital capital can be defined as average rate of return from all the sourc...

Q: What is the equivalent effective rate of minal rate is 14.5%?

A: Nominal interest rate is interest rate without the impact of compounding but effective interest rate...

Q: Suppose you plan to go on a dream vacation for your anniversary in 7 years from today and you plan t...

A: We need to use future value of ordinary annuity formula to calculate monthly payment to reach goal. ...

Q: the anhulty of the money which has fUture Wo ed monthly at the rate of 11%?

A: The future value of annuity includes the annuity amount deposited and interest accumulated over the ...

Q: A firm borrows 2000 for 6 years at 8%. at the end of 6 years, it renews the loan for the amount due ...

A: A loan is an amount borrowed on which a certain interest is to be paid. The lumpsum due is computed ...

Q: Consider the below three investment projects generating cash flows as follows: Project 1 2 3 4 A 1,0...

A: Here, Cost of capital =10% To Find: IRR =? MIRR =?

Q: you expect EUR to appreciate or depreciate over the next 12 months? Explain

A: Appreciation or depreciation of currency depends on the inflation and interest rate and overall econ...