2020 reported NOPAT $10,500 million 2020 reported NOA 62,200 million Present value of forecast horizon FCFF 42,800 million Present value of terminal period FCFF 229,900 million Net nonoperating obligations 18,800 million If Toppin has 2 billion shares of common stock outstanding, what is the value of a share of stock at the end of 2020 estimated using the discounted cash flow model? O $126.95 O $163.30 O $167.45 O $176.85 O $158.05

2020 reported NOPAT $10,500 million 2020 reported NOA 62,200 million Present value of forecast horizon FCFF 42,800 million Present value of terminal period FCFF 229,900 million Net nonoperating obligations 18,800 million If Toppin has 2 billion shares of common stock outstanding, what is the value of a share of stock at the end of 2020 estimated using the discounted cash flow model? O $126.95 O $163.30 O $167.45 O $176.85 O $158.05

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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After completing calculation exhibit 13.2, what questions the board could ask about the numbers?
470 -37 Assume that the dividend payout ratio will be 55 % when the rate on long term government bonds falls to 9%. Since investors are becoming more risk averse, the equity risk premium will rise to 8% and investors will require a 7% return. The return on equity will be 13%. What is your expectation of the market P/E ration? a. 37.69 b. 24.92 c. 58.15 d. 55.02 e. 47.82
Risk A1 Q2-1 Question 2. Binomial Model and Option Pricing The shares of XYZ Inc. are currently selling for $120 per share. The shares are expected to go up by 10 percent or down by 5 percent in each of the following two months (Month 1 and Month 2). XYZ Inc. is also expected to pay a dividend yield of 2 percent at the end of Month 1. The risk-free rate is 0.5 percent per month. What is the value of an American call option on XYZ shares, with an exercise price of $125 and two months to expiration? Use the binomial model to obtain the answer.
Find the missing data Coupon Rate Maturity Date Settlement Date Price Yield 3.88% 10/9/2037 10/10/2023 4.2500%
Suppose Lion Cage Multinational floated 5000 bonds on January 1, 2020 with a par value of 1500 at stated rate of 16%. Currently, the market is selling these bonds at 18%. The bonds are expected to paid back by December 2030 with an interest paid quarterly effective March 1, 2020. What would be the bond price? Group of answer choices No choice given 7,485,006 6,708,900 7,584,000 6,870,050
All the securities below have annual payments. [Do not round interim calculations] Security Rating Maturity (yrs) Face Value Coupon Price T-Bill 1 $1,000 0% $982.33 T-Note 5 $1,000 2.40% $992.44 T-Bond 10 $1,000 3.25% $1,005.53 T-Bond 20 $1,000 3.90% $1,002.26 Corp Bond BBB 5 $1,000 3.80% $944.55 Corp Bond AA 10 $1,000 3.40% $968.12 Corp Bond A 20 $1,000 5.10% $982.35 What price would you pay for a 5-year, A bond with a coupon rate of 2.70%, a $1,000 Face Value and annual payments? 1. $958.32 2. $945.39 3. $1,001.33 4. $1,09.56 5. None of the above
F3
Q 19) Beangrinder Corp. has an expected rate of return on equity next year (ROE1) equal to 12% and a reinvestment rate next year (RIR1), equal to 50%. Beangrinder Corp.'s equity beta is equal to 1 and the company is expected to have an earnings per share next year (EPS1), equal to $3. The long-run risk-free rate is equal to 1% while the stock market risk premium is forecast to equal 7%. What is Beangrinder Corp.'s intrinsic equity value per share equal to: Options - $100 $25 $50 $75
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George Stephenson's current portfolio of $2 million is invested as follows Summary of Stephenson's Current Portfolio Percent of Expected Annual Annual Standard Value Total Return Deviation Short-term bonds $ 200,000 10% 4.6% 1.6% Domestic large-cap equities Domestic small-cap equities Total portfolio 600.000 30 12.4 19.5 1,200,000 60 16.0 29.9 $2,000,000 100% 13.8 23.1 Stephenson soon expects to receive an additional $2 million and plans to invest the entire amount in an index fund that best complements the current portfolio. Stephanie Coppa, CFA, is evaluating the four index funds shown in the following table for their ability to produce a portfolio that will meet two criteria relative to the current portfolio: (1) maintain or enhance expected return and (2) maintain or reduce volatility. Each fund is invested in an asset class that is not substantially represented in the current portfolio. Index Fund Characteristics Expected Annual Standard Deviation Correlation of Returns Index Fund…
None
What is the result in B12? A 1 Settlement Date 2 Maturity Date 3 First Call Date 4 Time to Maturity (Years) 5 Coupon Rate 6 Required Return 7 Frequency 8 9 10 Basis 11 Value 12 Yield to Call 12 Face Value Call Price O a. 7.39% O b. 12.68% O c. 10.05% O d. 5.58% B 10/23/2020 10/23/2030 10/23/2025 $ $ 10 7.00% 10.00% 2 1,000 1,035 0 $813.07 ?

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