National Co. forecasts that its earnings per share will be P4.00 this year.  The company has 500,000,000 shares of stock outstanding. National Co. estimates that its capital budget for the upcoming year will be P800,000,000, and it is committed to funding the entire capital budget.  The company is also committed to maintaining its dividend of P3.20 per share, and it wants to avoid issuing

Q: WorldTrans is forecasting an EPS of $5.00 for the coming year on its 500,000 outstanding shares of…

A: The amount that is borrowed by the company from financial institutions, banks, or by issuing the…

Q: then ABC's stock price per share

A: The constant growth model is a stock valuation method used in finance to determine a stock's…

Q: FSIBL has a book value of Tk 10 per share. Company’s market capitalization rate is 12%. The company…

A: Expected rate = 10% Payout ratio = 70% Market value at year 4 = 27

Q: Blue Co. already determined the additional financing needed that it plans to raise through issuance…

A: = Net profit - Retained earnings = P1,800,000 - (2/3 * Net profit ) {Given} = 1,800,000 -…

Q: Analysts predict that Burks Corporation will have free cash flows (FCFs) of negative $20 million at…

A: WACC is 11% Net Debt is $30million Stocks outstanding is 3 milllion   To Find: current price per…

Q: A company is interested in measuring its overall cost of capital. Current investigation has gathered…

A: Stocks are the security that represents the holder's ownership of the company. The stock entitles…

Q: Chipotle Mexican Grill currently generates a yearly cash flow of $300 million. These cash flows are…

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Q: You own 100 shares of stock in BFRL and wish that the company sticks to its current capital…

A: To maintain your earnings irrespective of the company's decision, you would need to replicate the…

Q: United Builders wants to maintain a target capital structure with 30% debt and 70% equity. Its…

A: Dividend payout ratio measures the dividend payout in relation to the net income generated by the…

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A: Dividend payout is the level of dividends payments based on the net income of the company for a…

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A: Additional Financing Needed (AFN) is a techniques used by corporates to understand the amount of…

Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…

A: given, forever dividend = $9.2 million r=13.3% outstanding shares = 4.8 million

Q: Olmsted Inc. has $40 million in excess cash and no debt. The firm expects to generate additional…

A: Given:Annual free cash flow = $32 millionCost of capital = 10%Cash = $40 millionThe enterprise value…

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A: The company need the money for growth and expansion and to sustain the growth over the longer period…

Q: A & Z has to raise RM3 million for its five-year budget. The company is considering the following…

A: Expected Return The expected return is the minimum required rate of return which an investor…

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A: Weighted cost of the capital includes the weighted cost of debt, weighted cost of equity and…

Q: a. Compute the cost of debt, Kd. Note: Do not round intermediate calculations. Input your answer as…

A: Weighted cost of the capital includes the weighted cost of debt, weighted cost of equity and…

Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.9 million and…

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Q: Company B is currently all-equity financed with an EBIT of 45 million per year and generating…

A: Step 1:Answers:(a). Financing with Equity:Current EBIT: $45 millionNew Project EBIT: $20…

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A: "Since you have posted a question with multiple sub-parts, we have solved the first three for you.…

Q: FSIBL has a book value of Tk 10 per share. Company's market capitalization rate is 12%. The company…

A: The dividend discount model: The dividend discount model provides a framework to evaluate the…

Q: Consider a firm with an EBIT of $868,000. The firm finances its assets with $2,680,000 debt (costing…

A: Step 1 EPS before = Net income / number of sharesNet Income=(EBIT- Interest)*(1- Tax Rate)Debt…

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A: Maximum Capital Budget = Net income / Equity percentage

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Q: Wanbay Corporation is interested in estimating its additional financing needed to support a growth…

A:

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A: Here the capital structure is divided as 20% equity and 80% Debt. I The expected net income is P3…

Q: On January 1, the total market value of the Tysseland Company was $60 million. During the year, the…

A: WACC is a discounting rate, The WACC is used to calculate today's or current value of a company's…

Q: The MPD Corporation must raise $30 million to finance its current capital budget. A common stock…

A: First option: First calculate the Number of shares to be issued, if project is completely financed…

Q: XYZ Corp has a capital budget of $10M for next year. The company has a target capital structure of…

A: Net income means the amount left after deducting all the expenses from  the revenue. Net income is…

Q: On January 1, the total market value of the Tysseland Company was $60 million. During the year, the…

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Q: Petersen Co. has a capital budget of $ 910 . The company wants to maintain a target capital…

A: Step 1 The amount of dividends given to shareholders in relation to the total amount of net income…

Q: m Enterprises expects that one year from now it will pay a total dividend of  $4.5 million and…

A: Answer : Present value of equity = Total expected payout / cost of equity Present value of equity =…