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Chapter 15.2, Problem 15.5RQ
Summary Introduction

Todetermine: The helpful factors divide the funding requirements of a seasonal business into its seasonal and permanent funding needs while developing a funding strategy.

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One year ago, the Jenkins Family Fun Center deposited $3,700 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,500 to this account. They plan on making a final deposit of $7,700 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 9 percent?
It is anticipated that Pinnaclewalk will next pay an annual dividend of $2.2 per share in one year. The firm's cost of equity is 19.2% and its anticipated growth rate is 3.1%. There are 420000 outstanding. Use the Gordon Growth Model to price Pinnaclewalk's shares. {Express your answer in dollars and cents} What is Pinnaclewalk's market capitalization? {Express your answer in millions of dollars rounded to two decimal places}
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Chapter 15 Solutions

Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)

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