From the following information calculate the price of the stock. The stock will pay its first annual dividend of $1.00 four years from now. The dividends for years 5 and 6 will be $1.20 and $1.30, respectively. After year 6, dividends will grow by 2.00% p.a. forever. The required rate of return is 12.00% p.a.

a. $3.50 b. $11.52 c. $9.74 d. $16.49 e. $8.69

BALANCE SHEET ANALYSIS

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.2x
Days sales outstanding: 39.5 days^a
Inventory turnover ratio: 4x
Fixed assets turnover: 3x
Current ratio: 2.5x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25%
^aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.2x
Days sales outstanding: 31.5 days^a
Inventory turnover ratio: 5x
Fixed assets turnover: 2.5x
Current ratio: 2.1x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30%
^aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

A firm is considering investing $10 million today to start a new product line. The future of the project is unclear however and depends on the state of the economy. The project will last 5 years. The yearly cash flows for the project are shown below for the different states of the economy. What is the expected NPV for the project if the cost of capital is 12%? (Show your work. Label $. No decimal places required. Highlight or bold your answer.)

Your firm wishes to raise 10,000,000 by either issuing regular coupon bonds or issuing zero coupon bonds. The regular coupon bonds will have a 10% coupon rate. Both issues are expected to mature in 12 years,pay annual, and have a yield of 6%.

a.If they opted to go with regular bonds, what is the firms total repayment in year 12?

b.If they opted to go with zero coupon bonds, what is the firms total repayment in year 12?

please explain repayment portion ^^^

The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of $650 for 5 years and $325 for the sixth year. Its current book value is $3,575, and it can be sold on an Internet auction site for $4,150 at this time. If the old steamer is not replaced, it can be sold for $800 at the end of its useful life.

Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $11,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,100. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,600 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and its WACC is 14%.

What is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar.

i dont know what is the Plant Clearing Offset By Biobanking Agreement, i need the answer in detail

Functions of financial management and decision-making [21 MARKS]
1.1 Identify three primary functions of a financial manager and explain the
relationship between these roles.(9)
1.2 Create your own example(s) to illustrate the difference between sensitivity
analysis, standard deviation and coefficient of variance. Ensure that you
explain how these indicators are interpreted

Your client is contemplating changing from a sole proprietorship to a C corporation. He has heard the terms "book to tax differences," "dividends received deduction," and "differences in the charitable deduction," but would like a detailed discussion from you. What would you tell your client with respect to financial and corporate taxation? Discuss the differences, in detail, between a sole proprietorship and a corporation in how they treat "book to tax differences", "dividends received deduction", and "differences in the charitable deduction", by not only defining the terms, but how they are treated for both entities including any differences in the calculation of charitable deductions between the two entities.

Question 1

a. How much governmental financial information is used by citizens? From what sources?

b. How is governmental financial information filtered by information intermediaries, such as the newspaper and interest groups? With what effect?

In a short paper, debate its relevance for your country in the present day and age. Explain how you would conduct the necessary research to answer your chosen question.

11. The Standard deviation of quarterly changes in the price of a commodity is $0.65, the standard deviation of quarterly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.8. The minimum variance hedge ratio for a 3-month contract is:

a. 0.642

b. 0.732

c. 0.864

d. 0.997

1. Calculate the external financing needed (EFN) assuming 12% growth rate and full capacity operation. Use Excel to create pro-forma financial reports.

You want to buy a house that costs $320,000. You have $32,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $288,000. However, the realtor persuades the seller to take a $288,000 mortgage (called a seller take-back mortgage) at a rate of 5%, provided the loan is paid off in full in 3 years. You expect to inherit $320,000 in 3 years, but right now all you have is $32,000, and you can afford to make payments of no more than $25,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.)

1. If the loan was amortized over 3 years, how large would each annual payment be? Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

   Could you afford those payments?
   -Select-No, the calculated payment is greater than the affordable payment.Yes, the calculated payment is less than the affordable payment.No, the affordable payment is greater than the calculated payment.Yes, the calculated payment is greater than the affordable payment.Item 2

2. If the loan was amortized over 30 years, what would each payment be? Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

   Could you afford those payments?
   -Select-Yes, the calculated payment is less than the affordable payment.No, the calculated payment is greater than the affordable payment.No, the affordable payment is greater than the calculated payment.Yes, the calculated payment is greater than the affordable payment.Item 4

3. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be? Do not round intermediate calculations. Round your answers to the nearest cent.

   Loan balance: $  

   Balloon payment: $  

Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%, and payback cutoff is 4 years.

A. What is the payback period?

B. What is the discounted payback period?

C. What is the NPV? D. What is the IRR?

E. Should we accept the project?

What method should be the primary decision rule?

When is the IRR rule unreliable?

Please include steps on how to solve and all parts to question. Thank you.

Dave takes out a 23-year mortgage of 290000 dollars for his new house. Dave gets an interest rate of 14.4 percent compounded monthly. He agrees to make equal monthly payments, the first coming in one month. After making the 70th payment, Dave wants to buy a boat, so he wants to refinance his house to reduce his monthly payment by 400 dollars, and to get a better interest rate. In particular, he negotiates a new rate of 7.2 percent compounded monthly, and agrees to make equal monthly payments (each 400 dollars less than his original payments) for as long as necessary, followed by a single smaller payment. WHAT WILL BE DAVE'S FINAL PAYMENT AMOUNT BE?