2021 3) Assumed XYZ is a fast growing Technology Company. You believe that the data given in Question 1 will persist for the next 3 years. But, beyond the next 3 Year, you believe it22 will grow at a normal economic growth rate. Your economic forecast for U.S, economy is 1.5% growth annually. Recalculate your Fair Value of XYZ23242526278901234)45Fair Value Based on 2 Stage DDM isDPS*(1+g)Present Value1.0077) Microsoft Corporation's (ET)2.003.00Terminalvalue"The terminal value calculated using the Gordon Constant Growth Model at time nWhat is the value of a 10 year, $1,000 par value bond issued by The American Express Corporation with a coupon rate of 2.83% paid semiannually based on current 10 yearyield rate of 2.5%?Bond Value $If the Modified Duration of the bond is question 4 is 1.50, calculate the approximate $ change in bond price if the Fed next move is to increase interest rate by 25 bps(25%) [Make sure your change in Bond Price is the correct sign]Change in Bond Price $675)B9D1236) Microsoft Corporation (MSFT) is currently trading at $53.93. You are holding a long Put with a strike price of $50.00. Let's assumed you have also paid $5 premium for the LongPut [Make sure your profit is the correct sign: negative for a loss]Profit or Loss $:

Bond valuation is a technique to determine value of bond including discounted present value of…

Answered: stant Growth Model at time n What is…

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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3) It is now Jan 1, 2016. You have analyzed DuckCo's future product launches, markets, and competitors. You project the following FCFs for the next 3 years: 2016 2017 5,600 6,700 ($ 000) FCF 2018 7,200 After 2018, you believe DuckCo's FCF will grow at 3% per year. DuckCo's beta is 1.1, the risk free rate is 4%, the expected market return is 12.6%, their capital structure consists of 80% equity and 20% net debt which has a debt yield of 5%. Their tax rate is 28%. They have $4 million in cash, $20 million in debt, and 3 million shares outstanding. What is your estimate of DuckCo's stock price?
Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the following stock market returns for the coming year: State of the Economy High Growth Normal Growth Recession Probability 0.2 0.7 0.1 Return 60% 18% 2% a. Compute the expected value of a $1,000 investment over the coming year. If you invest $1,000 today, how much money do you expect to have next year? What is the percentage expected rate of return? Instructions: Enter dollar values rounded to the nearest whole dollar and percentages rounded to one decimal place. The expected value is $ and the expected rate of return is b. Compute the standard deviation of the percentage return over the coming year. Standard deviation = % = %. c. If the risk-free return is 7 percent, what is the risk premium for a stock market investment? Risk premium %
7. Assume that you have full year forecasted financials for 2019 - 2024 (planning period) and the following financials for after the planning period: • NOPAT (last year of planning period) = 90 • Long term growth rate = 2% • Long term ROCB = 11% • WACC = 8% What is the present value (at December 2018) of the terminal value of this company using the Key Value Driver Formula? Please round your answer to the nearest whole number and provide your answer in USD millions without a dollar sign (e.g. 100 instead of $100).
To 4-digit accuracy, computer the annual growth of your investment in both IWM and EEM.
The Dow Jones Industrial Average had the following annual returns: Year Return 2019 22.3% 2020 7.3% 2021 19% 2022 -8.7% Using just these last 4 years of data, what is the expected return for the Dow Jones? What is the standard deviation of the returns? Please show and explain your work.
Ee 201.
You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was $13,600. Then what was your estimate of its daily arithmetic mean rate of return for Daily rate of return((=P¡/Po-1) in year 2020 Arithmetic Mean the year 2020? → (1) 0.1231%; (2) 0.1303%; (3) 0.1440%; (4) 0.1473; (5) 0.1512%; 4 |(6) 0.1640%; (7) 0.1682%; Daily standard deviation 1.2% # of trading days 250
Assume that the economy can experience high growth, normal growth, or recession. Under these conditions you expect the following stock market returns for the coming year: State of the Economy High Growth Normal Growth Recession. Probabilities 0.2 0.7 0.1 Return +30% +12% -15% 1. Compute the expected value of a $2000 investment over the coming year. If you invest $2,000 today, how much money do you expect to have next year? 2. Compute the standard deviation of the percentage return over the coming year.
K Assume that Ideko's market share will increase by 0.40 percent per year as shown in the table, (e.g., Ideko's market share will be 10.00% in 2006). What production capacity will Ideko require each year for the next five years? When will an expansion become necessary (i.e., when will production volume exceed the current level by 50%)? e. What production capacity will Ideko require each year for the next five years? First compute the projected annual market share. Then, using these projections, calculate the projected annual production volume: (Round the volumes to one decimal place and the percentage of market share to two decimal places.) dd Sales Data Market Size (000 units) Market Share Production Volume (000 units) Data table Growth/Year 2005 4.80% 0.40% % (Click on the following icon in order to copy its contents into a spreadsheet.) - X Ideko Sales Assumptions Sales Data Growth/Year 2005 Market Size (000 units) Market Share 4.80% 10.000 0.40% 9.6% Check answer
To 4-digit accuracy, compute the annual growth of your investment in both IWM and EEM.
as « Question 15 of 50 > Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales So Sales growth rate g Last year's total assets A0* Last year's profit margin PM $350 Last year's accounts payable Last year's notes payable Last year's accruals Target payout ratio %3D $40 30% $50 $500 $30 5% %3D 60% O a. $102.8 O b. $108.2 O c. $125.9 O d. $113.9 O e. $119.9 0 Icon Key P Type here to search W 8:24 SN3コロ 4/12/ ace
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