Rework Table 4.1 under the assumption that the dividend on Fledgling Electronics is $10 next year and
Question:
Rework Table 4.1 under the assumption that the dividend on Fledgling Electronics is $10 next year and that it is expected to grow by 5 percent a year. The capitalization rate is 15percent.
Transcribed Image Text:
Expected Future Vakues Present Values Horizon Cumulative Dividends Future Price Period (H) Dividend (DIV,) Price (P) Total 100 110 121 133.10 146.41 100 100 100 100 100 5.00 5.50 6.05 6.66 4.35 8.51 12.48 16.29 95.65 91.49 87.52 83.71 11.79 30.58 259.37 672.75 11,739.09 1,378,061.23 10 20 50 35.89 58.89 89.17 98.83 64.11 100 100 100 100 41.11 533.59 10.83 100 62,639.15 1.17 88888 8888 O12 34
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (14 reviews)
Assumptions 1 Dividends increase by 5 per year compounded 2 The capitalization rate is 15 Hori...View the full answer
Answered By
SAGAR PATIL
Hello friends,
I am Sagar Patil , competed my masters in Mathematics and currently working as asst. professor . I have about 8 years of teaching experience for graduate , post graduate , junior class level students.
Mathematics is my favorite subject and I am passionate towards new learning. I have mastery over the basic mathematical concepts and very much familiar with advance Mathematics in Algebra , Calculus, Complex Analysis, Differential Equations and numerical.
I have effective communication skill, effective conflict resolution style and nurturing positive attitude. Always motivate students for their confidence building.
0.00
0 Reviews
10+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
Rework Table under the assumption that the dividend on Fledgling Electronics is $10 next year and that it is expected to grow by 5% a year. The capitalization rate is15%. Expected Future Values...
-
Table 14.1 was constructed under the assumption that all firms in the industry are identical. A: Suppose that all firms in an industry have U-shaped long run average cost curves. (a) Leaving aside...
-
Under the assumption that Idekos market share will increase by 0.5% per year (and the investment and financing will be adjusted as described in Problem 3), you project the following depreciation:...
-
1. Our Play has (14.4/9.86) days of sales tied up in receivables, which is much (higher/lower) than the industry average. It takes Our Play (less/more) time to collect cash from its customers than it...
-
What is transmutation?
-
A paint company has two types of bases from which it blends two types of paints: Tuffcoat and Satin- wear. Each base has a certain proportion of ingredients X, Y, and Z, as shown in the table at the...
-
During the past year, Lite Company had net income of \(\$ 5\) million, and Scanlon Company had net income of \(\$ 8\) million. Both companies manufacture electrical components for the construction...
-
Six samples of five observations each have been taken of 80 kg concrete slabs produced by a machine, and the results are displayed below. a. Using factors from Table 10-2, determine the upper and...
-
Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,300. It will have a useful life of 4 years and no salvage value. Annual cash inflows...
-
The Lead-Tin phase diagram: a) Show the eutectic three phase reaction on this phase diagram. b) A Pb-45% Sn alloy is cooled from 300C to 100C. What phases are present for this alloy at this...
-
Define the market capitalization rate for a stock. Does it equal the opportunity cost of capital of investing in the stock?
-
In March 2001, Fly Papers stock sold for about $73. Security analysts were forecasting a long-term earnings growth rate of 8.5 percent. The company was paying dividends of $1.68 per share. a. Assume...
-
The neutron generation time (see Problem 19) of a particular reactor is 1.3 ms. The reactor is generating energy at the rate of 1200.0 MW. To perform certain maintenance checks, the power level must...
-
The expression for a physical quantity is a = [a], that is the dimension of a O T2 O LT OT 2 , where I is a length ([1] = L) and g is an acceleration ([g] = LT-2). Use Dimensional analysis to find
-
Bowie was a 10-week-old French Bulldog puppy who was being offered for sale at a Pet Store in Eastgardens. Bowie was exceptionally friendly, with a beautiful mix of white and lilac colouring making...
-
Sandy drove 5,632 personal kilometres in 2023. What is the operating cost benefit ? Mary works in Alberta and is paid $700 weekly . In My she received a bonus of $ 800 for meeting her previous year's...
-
discuss the potential challenges and barriers that may hinder employees from engaging in advanced Organizational Citizenship Behavior (OCB), and how can these obstacles be overcome?
-
You represent the Plaintiff. You won, but unfortunately there was an error in the Dollar amount. When you prepared the Judgment you put that the defendant had due and owing $7,250.49. You should have...
-
During operation a \(100-\mathrm{kg}\) press is subject to the periodic excitations shown. The press is mounted on an elastic foundation of stiffness \(1.6 \times 10^{5} \mathrm{~N} / \mathrm{m}\)...
-
An access route is being constructed across a field (Figure Q8). Apart from a relatively firm strip of ground alongside the field's longer side AB, the ground is generally marshy. The route can...
-
Dichromate ion (Cr 2 O 7 2- ) in acidic solution is a good oxidizing agent. Which of the following oxidations can be accomplished with dichromate ion in acidic solution? Explain. 2+ (a) Sn+ (aq) to...
-
Reliant Umbrellas has been approached by Plumpton Variety Stores of Nevada. Plumpton has expressed interest in an initial purchase of 5,000 umbrellas at $10 each on Reliants standard terms of 2/30,...
-
True or false The efficient-market hypothesis assumes that a. There are no taxes. b. There is perfect foresight. c. Successive price changes are independent. d. Investors are irrational. e. There are...
-
True or false a. Financing decisions are less easily reversed than investment decisions. b. Tests have shown that there is almost perfect negative correlation between successive price changes. c. The...
-
D 8 The Gomez family bought a house for $175,000. They paid 20% down and amortized the rest at 11.2% over a 30-year period. Find their monthly payment. $1,354.45 O $1693.07 $2,149.21 $1,125.17 5
-
Consider two investments: a municipal bond that pays a tax-free yield of 3.5% and a taxable bond with a yield of 5%. If an investor is in the 25% tax bracket, what would be the tax equivalent yield...
-
You want to purchase a new Car for OMR ( Choose your amount _ 2 0 . 0 0 0 _ _ _ _ _ _ _ _ ) . You pay a 2 0 % down payment and agree to pay the remaining amount in one year in equated monthly...
Study smarter with the SolutionInn App