Question
In: Finance
Riskfree rate 0.02 Market rate 0.15 1. Use the information below and the Combined Dividends &...
Riskfree rate 0.02 Market rate 0.15
1. Use the information below and the Combined Dividends & Earnings Model to find ABB’s value. (Remember that the EPS and dividend for t+1 are given.)
|
t+1 |
t |
t-1 |
t-2 |
t-3 |
|
|
EPS |
$1.50 |
||||
|
Dividend |
1.01 |
||||
|
DPO |
0.74 |
0.69 |
0.60 |
||
|
ROE |
0.15 |
||||
|
Beta |
1.10 |
||||
|
P/E |
19.2 |
23.5 |
22.9 |
||
|
Shares outstanding |
2,130 |
mill |
2. Use the info below and the CD&E model to find ArcBest’s value.
|
t+1 |
t |
t-1 |
t-2 |
t-3 |
|
|
EPS |
$4.15 |
||||
|
Dividend |
0.25 |
||||
|
DPO |
0.08 |
0.08 |
0.08 |
||
|
ROE |
0.125 |
||||
|
Beta |
1.7 |
||||
|
P/E |
10.4 |
20.5 |
22.1 |
||
|
Shares outstanding |
530 |
mill |
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Riskfree rate = 0.016 Market rate = 0.078 Using the information below and the CD&E
Riskfree rate =
0.016
Market rate = 0.078
Using the information below and the
CD&E model, forecast Carlisle’s cash flows for t+1, t+2, and
t+3 to determine whether Carlisle is over or under valued if it’s
trading at $123.68.
t
t-1
t-2
t-3
EPS
$9.05
DPO
0.23
0.22
0.26
ROE
0.17
Beta
1.95
P/E
18.7
18.7
17.2
The current riskfree rate is 4% and the expected rate of return on the market portfolio...
The current
riskfree rate is 4% and the expected rate of return on the market
portfolio is 10%. The Brandywine Corporation has two divisions of
equal market value. The debt to equity ratio (D/E) is 3/7. The
company’s debt can be assumed to present no risk
of
default. For the last few years, the Brandy division has been using
a discount rate of 12% in capital budgeting decisions and the Wine
division a discount rate of 10%. You have been...
6. Marcel Co. is growing quickly. Dividends are expected to grow at a rate of 0.15...
6. Marcel Co. is growing quickly. Dividends are expected to grow
at a rate of 0.15 for the next 4 years, with the growth rate
falling off to a constant 0.01 thereafter. If the required return
is 0.15 and the company just paid a $0.53 dividend, what is the
current share price? Answer with 2 decimals (e.g. 45.45).
7. Apocalyptica Corp. pays a constant $8.28 dividend on its
stock. The company will maintain this dividend for the next 12
years...
Riskfree rate 0.03 Market rate 0.11 You have three stocks in your portfolio: Applied Materials, Texas...
Riskfree rate
0.03
Market rate 0.11
You have three stocks in your portfolio: Applied Materials,
Texas Instruments, and Qualcomm. Use their information in the chart
below to answer the questions.
AMAT
TXN
QCOM
Shares
25
12
18
Purchase Price
$20.47
$76.93
$45.34
Expected sales price
$35.00
$98.00
$55.00
Dividend
$0.80
$3.08
$2.48
Beta
1.25
1.10
1.35
Standard deviation
0.03
0 . 0 5
0.04
1. What is each stock’s dividend yield?
2. What is each stock’s capital gain return?...
Riskfree rate 0.03 Market rate 0.11 You have three stocks in your portfolio: Applied Materials, Texas...
Riskfree rate
0.03
Market rate 0.11
You have three stocks in your portfolio: Applied Materials,
Texas Instruments, and Qualcomm. Use their information in the chart
below to answer the questions.
AMAT
TXN
QCOM
Shares
25
12
18
Purchase Price
$20.47
$76.93
$45.34
Expected sales price
$35.00
$98.00
$55.00
Dividend
$0.80
$3.08
$2.48
Beta
1.25
1.10
1.35
Standard deviation
0.03
0 . 0 5
0.04
1. What is each stock’s dividend yield?
2. What is each stock’s capital gain return?...
Use the information below to calculate the ask cross rate between C$ and € in the...
Use the information below to calculate the ask cross rate
between C$ and € in the "C$/€ " format.
Bid
Ask
Canadian Dollar
$0.7505
$0.7786
Euro
$1.1536
$1.1692
Answer Format: Keep four decimals; use the price currency as the
unit. Example: 4.1234(C$) or 4.1234(€)
a) Use the information below to calculate the bid cross rate between C$ and € in...
a) Use the information below to calculate the bid cross rate
between C$ and € in the "C$/€ " format.
Bid
Ask
Canadian Dollar
$0.7529
$0.7774
Euro
$1.1545
$1.1644
Answer Format: Keep four decimals; use the price currency as the
unit. Example: 4.1234(C$) or 4.1234( € )
b) An English business man just received €187,039 payment from a
European company. He obtained currency quotes from his bank:
€1.116/£ -- €1.1256/£. Estimate his £ cash flow.
Answer format: keep four decimal places; include...
1. Given the information below about Thomas Corporation, what was the amount of dividends the company...
1. Given the information below about Thomas Corporation, what
was the amount of dividends the company paid in the current
period?
Beginning retained earnings
$
54,000
Ending retained earnings
$
117,000
Decrease in cash
$
9,900
Net income
$
91,000
Change in stockholders’ equity
$
13,000
2. The ending Retained Earnings balance of Boomer Inc. decreased
by $1.9 million from the beginning of the year. The company
declared a dividend of $4.7 million during the year. What was the
net...
The risk free rate is .02 and the market rate is .15. 1 Use the info...
The risk free rate is .02 and the market rate is .15.
1 Use the info below and the zero growth model to find Pitney
Bowes’ value.
Beta
1.20
Dividend
$0.75
Shares outstanding
189,000,000
2.
Use the info below and the non-zero growth model to find 3M’s
value.
Beta
0.95
Next year’s dividend
$5.82
Growth rate
0.08
Shares outstanding
570,000,000
3.
Use the info below and the non-zero growth model to find ABB’s
value.
Beta
0.95
Next year’s dividend
$1.06...
1. What is the MEANING and the APPLICATION of the use of COMBINED LEVERAGE in a...
1. What is the MEANING and the APPLICATION of the use of
COMBINED LEVERAGE in a start-up business’ financial model?
2. What is the GOAL of the financial forecasting process for a
start-up business? That it, what is the business “forecasting”, and
why is the information derived from the forecast important?
3. Explain the fundamental assumption which underlies the
Additional Funding Needed (AFN) formula approach to financial
forecasting for a start-up. What are the limitations of rigid
application of the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Develop a Java program that determines the gross pay for an employee. The company pays hourly...
- Discuss the four evolving company orientations. Which orientation is considered most successful and why?
- Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate....
- this should be written in Java- Problem: Min/Max Search by Index Develop a program that, given...
- 2.the stock of Business Adventures sells for $70 a share. Its likely dividend payout and end-of-year...
- Provide TWO specific strategies that an equipment designer could employ to reduce heating of the temperature-sensitive...
- For fatty acid synthesis what would be the substrate if you are making an even number...
ADVERTISEMENT