What is the current market price of a bond that has a face value of $1 million
Fantastic news! We've Found the answer you've been seeking!
Question:
Q2. Facebook paid its common stocks a dividend of $0.77 last year. The company expects growth to continue at 10% p.a. for the next 2 years and 5% p.a. thereafter. What is the current price of the share? common shareholders' rate of return is 10% p.a. (Show your calculations)
Q3. Your company is looking at a project that requires a $50,000 investment. It is expected that the project will generate cash flows of $15,000 in year 1, $20,000 in year 2, $17,000 in year 3, and $13,000 in year 4. Using the NPV method, should the project be undertaken if your shareholders' required rate of return is 5%? (Show your calculations)
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
Posted Date: