Question: L U 42,074.00 Your answer: Question 5 (CHAPTER 8) A Corporation announced of its plans to pay: $2 dividend per share in 1 year, $4
L U 42,074.00 Your answer: Question 5 (CHAPTER 8) A Corporation announced of its plans to pay: $2 dividend per share in 1 year, $4 dividend per share in 2 years, $6 dividend per share in 3 years, after which the dividend will be increasing at a constant annual growth rate of 6 percent. The rate of return for this company is 11%. Calculate the value of one share of stock of this company. Part of the calculation will be finding the Present Value of a(n) (a) ordinary annuity (b) annuity due (c) regular perpetuity (d) growing perpetuity ...with the first dividend being (a) $2 (b) $4 (c) $6 (d) $87.74 (e) $92.79 (f) $97.39 (8) $102.44 (h) $113.71 (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher Only round your final answer to TWO decimal places: for example, 100.23.) The final numerical answer to this problem is: Your answer: Question 7 (CHAPTER 10) Your company's boss asked you to estimate the cash flows relevant to a new Investment project. In particular, he wants you to focus on Net Working Capital and how it may need to be adjusted for each year of the proposed project. Here's the summary of your estimates: If accepted, the 3-year project would require an immediate investment of $30,000 into the Net Working Capital (NWC). It would be necessary to increase the Net Working Capital by $5,000 in each subsequent year of the project. You then summarized the results for your boss as follows: (Fill it out! Pay attention to the signs! A"_" sign indicates a cash outflow for the company, while no sign indicates a inflow.) Change in NWC in Year 0: Change in NWC in Year 1: Change in NWC in Year 2: Change in NWC in Year 3
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
