Invest $3,000 per year starting next year for 37 years earning 8% per year, what is the future value? What is the value of a company with $ 1 billion in NOPAT earnings projected at a 3% growth rate, 15%ROIC, and 7% WACC?

Q: Your company paid a dividend of $2 last year. The growth rate is expected to be 20 percent for 1…

A: Current dividend (D0) = $2 Growth rate for year 1 = 20% Growth rate for year 2 = 17% Growth rate…

Q: Cow Company will pay a $3.00 dividend next year, Dividends are expected to grow at a constant rate…

A: In the given question we need to compute the price at which stock should sell today i.e. price of…

Q: . Using PROBLEM 2, what is the projected growth rate for the 10-year period? (Round off to 2 decimal…

A: Growth Rate: It is the rate at which the cash flows of the investment grow each year.…

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A: Present value of growth opportunity is a valuation techniques which determines the price of the…

Q: Brandt Enterprises is expecting rapid growth for the next 2 years. They JUST PAID divident (D0) of…

A: Hence, Dividend after year 1 (D1) is 1.875, which is determined by multiplying the initial dividend…

Q: Your firm consistently reinvests 35% of earnings into projects generating a 25% rate of return. If…

A: ACCORDING TO GORDON MODEL OF CONSTANT GROWTH: R=D1P0+gwhere,R = rate of return D1= DIVIDEND NEXT…

Q: Please show your work, thanks!! A firm is expected to pay an annual dividend of $1.20 in one year.…

A: We need to use constant growth model equation to calculate growth rateP0 = D1 /(rs-g) Where P0 =…

Q: A certain company has expected next year earnings per share of $6. If the company wants to reinvest…

A: The question is based on the concept of Stock valuation

Q: A company projects a rate of return of 20% on new projects. Management plans to plow back 20% of all…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Company Z’s earnings and dividends per share are expected to grow indefinitely by 5% a year. If next…

A: In the given case, we have provided the expected dividend per share for the next year , constant…

Q: Wesen Corp. will pay a dividend of $3.50 next year. The company has stated that it will maintain a…

A: In the given question we need to calculate the price we will pay for the stock i.e. Intrinsic value…

Q: you own a factory and you are happy to see that earning per share have increased from $1 to $2 over…

A: Using excel RATE function

Q: You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two…

A: NPV : It is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: You have an opportunity to invest $49,200 now in return for $60,900 in one year. If your cost of…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: You want to value the company Marks and Spencer Group Plc. You project the dividends over 10 years…

A: Here,Cost of Equity is 7.5%Details of Expected Dividend is as follows:YearsDividend1 £…

Q: A company projects a rate of return of 20% on new projects. Management plans to plow back 20% of all…

A: Since more than three parts are asked at a time, the answer for first three sub-parts is only…

Q: , what is the present value of its growth opportunities?

A: Earnings per share, E = $12Plowback Ratio, b = 60%Dividend Payout Ratio = 100 – Plowback Ratio = 100…

Q: Micro Systems just paid an annual dividend of $0.2 per share. Its dividend is expected to double for…

A: Annual Dividend = $0.2 Growth for 4 years = double  Growth after 5 years = 2%  Required rate of…

Q: Mexican Motors’ market cap is 600 billion pesos. Next year’s free cash flow is 15.0 billion pesos.…

A: The return received from an investment is known as the rate of return over a particular period of…

Q: Towson Industries is considering an investment of $256,950 that is expected to generate returns of…

A: A Present Value of the Annuity Table will be used to solve this…

Q: Our company forecasts to pay a $10 dividend next year, which represents 100% of its earnings. This…

A: Present value of growth opportunities (PVGO) can be calculated by using equation below.whereD1 =…

Q: comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?

A: The net present value calculation aids in determining whether an investment will yield a higher…

Q: A company expects a 20% return on equity invested entirely in new projects. The company's management…

A: Return on equity = 20%Retention ratio =30%Earnings per share = €3Expected return  = 12%

Q: The NOPLAT of company XOXO is around 1200$. The company estimates that the growth rate is 6% and the…

A: The question is related to Continuing Value. In the given case, the Continuing Value will be…

Q: The return of ABC company at present is 20%. This is assumed to continue for the next 3 years and…

A: Dividend discount model (DDM)- It is a method of valuing a company's stock price based on the logic…

Q: You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year…

A: The present value of future earnings is the current valuation of anticipated income or cash flows,…

Q: The management of ABC Inc. has discovered a profitable business opportunity that will enable them to…

A: The present value of perpetuity for growing opportunity can be found by dividing th earnings by the…

Q: You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…

Q: Google recently had a market cap of $194 billion, total equity of $46.2 billion, and 321 million…

A: Given:

Q: Value a company that has current FCFo of $250,000 using a growth rate of 10% for the following 10…

A: Terminal Value is calculated by perpetual growth model. Terminal Value = Expected free cash flows/(r…

Q: A company has a project with initial investment is S40,000. It will generate $15,000 annually for…

A: Initial Investment =$ 40,000 Annual Cash flows = $ 15000 Years = 4 Beta = 2.0 Risk Free return(Rf) =…

Q: Your firm currently has net working capital of $115,000 that it expects to grow at a rate of 4.0%…

A: Net working capital is the difference between the current assets and current liabilities and is…

Q: A company is forecasted to generate free cash flows of $49 million for the next three years. After…

A: Given Free cash flow = $49 million Debt =$42 million Cash =$ 6 million Share outstanding = 14…

Q: 1) a year. Based on your analysis you came to conclusion that the FCF will rise 7% a year during…

A: The dividend discount model is the model of stock valuation that assumes that the stock price of a…

Q: A company projects a rate of return of 20% on new projects. The executive team plan to plow back 20%…

A: A company projects a rate of return of 20% on new projects. The executive team plan to plow back 20%…

Q: You put up K500 at the beginning of the year for an investment. The value of the investment grows 4%…

A: The return a shareholder makes on a financial asset while the asset is held is known as the holding…

Q: suppose the firms FCF is expected to be $30mn in one year $20mn in two years and there after the…

A: Free cash flow is the money that a business makes after deducting the costs of operating and…

Q: 1. You have an opportunity to invest $50,000 now in return for $60,000 in one year. If your cost of…

A: Investment amount = $50.000Cash flow in year 1 = $60,000Cost of capital = 8%

Q: ZDL Ltd's earnings per share next year is expected to be $1.50 and the earnings are expected to grow…

A: Present value of growth opportunity (PVGO) refers to the valuation method used by the company to…

Q: You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…