when determinig the finacial objective of the company it is necessary to take three types of policies into account investment policy, financing policy and dividend policy. Discuss the nature of the three types of policy dicissions, comment on how they are interelated and how they may affect the value of the firm.

Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.25 yesterday. Bahnsen's dividend is expected to grow at 5% per year for the next 3 years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 9%.

1. Find the expected dividend for each of the next 3 years; that is, calculate D₁, D₂, and D₃. Note that D₀ = $3.25. Round your answer to the nearest cent.
   
   D₁ = $
   D₂ = $
   D₃ = $
   
2. Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D₁, D₂, and D₃, and then sum these PVs. Round your answer to the nearest cent. Do not round your intermediate calculations.
   $
   
3. You expect the price of the stock 3 years from now to be $98.76; that is, you expect  to equal $98.76. Discounted at a 9% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $98.76. Round your answer to the nearest cent. Do not round your intermediate calculations.
   $
   
4. If you plan to buy the stock, hold it for 3 years, and then sell it for $98.76, what is the most you should pay for it today? Round your answer to the nearest cent. Do not round your intermediate calculations.
   $
   
5. Use equation below to calculate the present value of this stock.
             
   Assume that g = 5% and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cent.
   $
   
6. Is the value of this stock dependent upon how long you plan to hold it? In other words, if your planned holding period was 2 years or 5 years rather than 3 years, would this affect the value of the stock today, ?
   
   1. No. The value of the stock is not dependent upon the holding period. The value calculated in parts a through d is the value for a 3-year holding period. It is equal to the value calculated in part e. Any other holding period would produce the same value of .
   2. Yes. The value of the stock is dependent upon the holding period. The value calculated in parts a through d is the value for a 3-year holding period. It is not equal to the value calculated in part e. Any other holding period would produce a different value of .
   3. Yes. The value of the stock is dependent upon the holding period due to the fact that the value is determined as the present value of all future expected dividends.
   4. No. The value of the stock is not dependent upon the holding period unless the growth rate remains constant for the foreseeable future.
   5. Yes. The value of the stock is dependent upon the holding period as long as the growth rate remains constant for the foreseeable future.
   
   -Select-

Here is the following information on the Cheesecake Factory, I am trying to answer question 1 below. Can you please help me out? Excel assignment.

• Current Dividend (Source – Yahoo!Finance) $1.28
• Required Return (Estimated) 8.9%
• Current EPS (Source – Yahoo!Finance) $2.14
• Current Book Value Per Share (Source – Yahoo!Finance) $13.24
• Current EBITDA per share (Source – Yahoo!Finance) $5.25
• Current Debt per share è $2.80 Current Cash and Equivalents per share $0.61
• Initial Growth Rate for H-Model (Estimated) 9%
• Terminal Growth Rate for H-Model (Estimated) 3%
• Time to Reach Terminal Growth Rate for H-Model (Estimated) 10 years
• Forecasted Growth Rates (Estimated)
  • Year 1 6%
  • Year 2 9%
  • Year 3 12%
  • Year 4 6%
  • Year 5 4%
  • Years 6 through infinity 3%
• Historical PE, PB and EV/EBITDA (Source – Morningstar and Gurufocus.com)
  • 5-Year Average 19.8 4.1 9.3        
• Comparative PE, PB, and EV/EBITDA for S&P 500 (Source – Morningstar and estimate)
  • 19.2 (5-year avg = 19.6)     3.7 (5-year avg = 2.9)     13.0 (5-year average 12.3)

1. Calculate the price for Cheesecake Factory using the
   1. H-Model
   2. Non-Constant Dividend Valuation Approach
   3. Relative valuation
2. 1. Historical PE, PB, and EV/EBITDA
   2. Comparative PE, PB, and EV/EBITDA (Adjust S&P 500 to reflect Cheesecake Factory’s average discount or premium to the market over the past 5 years. Example, if the S&P 500 had an average PE over the past 5 years of 17.0 and your company had an average PE of 14, then your company has historically traded at 82.35% of the market average PE. Therefore, if the current S&P 500 PE is 17.7, your company should have a PE of 14.58 based on the comparative relative valuation to PE. Take the 14.58 times your firm’s EPS to get fair value using this method.)

What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of (a) $54.00, (b) $82.00, (c) $101.00, and (d) $148.00? Round your answers to two decimal places.

1. %
   
2. %
   
3. %
   
4. %

1. Stock Transactions You have decided to purchase 1,000 shares of Caterpillar and short 600 shares of Home Depot. Complete these transactions on Stock-Trak.

2. Stock Transactions The next day, you decide that you want only 600 shares of Caterpillar and want to short 200 more shares of Home Depot. Complete the necessary transactions.

3. Stock Transactions You have now decided to close your long position in Caterpillar and close out your short position in Home Depot. Complete the necessary transactions. What is your total dollar gain or loss on these transactions?

(Please show the steps and use any dollar amount)

To borrow $1,600, you are offered an add on interest loan at 8.2 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal Payments

Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR ____ %

Question 1: Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 60 per cent and a recession is 40 per cent. It is projected that Good Time will generate a total cash flow of Rs 250 million in a boom year and Rs100 million in a recession. The firm’s required debt payment at the end of the year is Rs 150 million. The market value of Good Time’s outstanding debt is Rs108.93 million. Assume a one-period model, risk neutrality, and annual discount rate of 12 per cent for both the firm’s debt ratio and equity. Good Time pays no taxes.

A) What is the value of the firm’s equity?

B) What is the promised return on Good Time’s debt?

C) What is the value of the firm?

D) How much would Good Time’s debt be worth if there were no bankruptcy costs?

E) What payoff, after bankruptcy costs, do bondholders expect to receive in the event of a recession?

F) What costs do bondholders expect Good Time to incur should bankruptcy arise at the end of the year?

1 (a). Define the followings:

Cost pool

Cost driver

Direct cost allocation

Step-down cost allocation

Direct Cost

Indirect Cost

Fixed cost

Variable cost

(b) Effective cost drivers, and hence the resulting cost allocation system, must have what two important attributes?

(c) What is the better cost driver for the costs of a hospital’s financial services department: patient services department revenues or number of bills generated? Explain your rationale.

Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40 years until retirement at age 65. For the first ten years, she contributes $3,700 per year. She increases the contribution rate to $5,700 per year in years 11 through 20. This is followed by increases to $10,700 per year in years 21 through 30 and to $15,700 per year for the last ten years. This money earns a return of 10 percent.

First compute the value of the retirement plan when she turns age 65. (Round your answer to 2 decimal places.)

Compute the annual payment she would receive over the next 40 years if the wealth was converted to an annuity payment at 9 percent. (Round your answer to 2 decimal places.)

Creative Web Design uses a job-order costing system to track the costs of its web design projects. The company provides complete website design and hosting services. The following table provides data concerning the three design projects that were in process during May. There was no work in process at the beginning of May:

Actual overhead costs were $4,750 for May. Overhead costs are applied to projects on the basis of designer-hours. The predetermined overhead rate is $27 per designer-hour. The Car City and Jan’s Flowers projects were completed in May; the Happy Daycare project was not completed by the end of the month. No other jobs were in process during May.

Required:

1. Compute the amount of overhead cost that would have been charged to each project during May.

2. Prepare a journal entry showing the completion of the Car City and Jan’s Flowers projects and the transfer of costs to the Completed Projects (i.e., Finished Goods) account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. What is the balance in the Work in Process account at the end of the month?

4-a. What is the balance in the Overhead account at the end of the month?

4-b. What is this balance called?

• Overapplied overhead

• Underapplied overhead

Rachel purchased a car for $17,000 three years ago using a 4-year loan with an interest rate of 9.0 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan.

What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

.a)What attracts you to JP Morgan and specifically the Asset Managemnt opportunity?
b) Describe what factors have influenced financial markets in recent months and how they might affect our clients.
C. Tell us about a time when you faced a complex problem and how you found the solution.
Help me with these interview questions please and how i can answer them

Explain the difference between a corporation that only holds real estate and a REIT.

​(Select all the choices that​ apply.)

A.

REITs must pay corporate income​ taxes; a corporation that holds only real estate does not pay corporate taxes but must substantially pass through all the income to shareholders to whom it is taxable.

B.

A corporation that holds only real estate must pay corporate income​ taxes; REITs do not pay corporate taxes but must substantially pass through all the income to trust unit holders to whom it is taxable.

C.

A corporation that holds only real estate is limited to 75 shareholders and cannot have corporate or foreign stockholders.

D.

REITs are limited to 150 shareholders and cannot have corporate or foreign stockholders.

How to calculate the DuPont equation

A leading author in accounting and finance, Alfred Rappaport focuses in his work on the importance of a firm's management continually taking steps that increase shareholder value. In a recent article he set out his "Ten Ways to Create Shareholder Value:"

1. Do not manage earnings or provide earnings guidance; do not focus on earnings as it reflects neither the company's value or the change in value over the reporting period.
2. Make the strategic decisions that maximize expected value, even at the expense of lowering near-term earnings; this may mean divesting units that do not contribute to the company's long-term strategic goals though they do contribute to current profits.
3. Make acquisitions that maximize expected value, even at the expense of lowering near-term earnings; do not make acquisitions that improve only current earnings per share, but those that are expected to contribute to long-term value.
4. Carry only assets that maximize value; continually review assets and be prepared to sell units, brands, real estate, or other assets that can be sold for a price that is greater than their value to the company.
5. Return cash to shareholders when there are no credible value-creating opportunities to invest in the business; through cash dividends and stock buybacks.
6. Reward CEOs and other senior executives for delivering superior long-term returns.
7. Reward operating unit managers for adding superior multiyear value.
8. Reward middle managers and frontline employees for delivering superior performance on the key value drivers that they influence directly.
9. Require senior executives to bear risks of ownership just as shareholders do.
10. Provide investors with value relevant information.

Required: Based on Chapter 20, identify managerial concepts that you would apply for each of the 10 steps. Compensation concepts, management comp programs, business valuation techniques. Please do not simply write "Book Value" valuation. Explain why you would use such concepts and valuation models and why.