A proposed nuclear power plant will cost $2.3 billion to build (today) and then will produce cash flows of $310 million a year for 5 years (year 1 to year 5). It then must be decommissioned at a cost of $910 million (in year 5). What is project NPV if the discount rate is 4%?

A project will generate the following cashflows: Yr 0 cost of purchasing an office building $350,000 Yr 1 rental proceeds $20,000, which will keep growing at 2% a year forever The opportunity cost of capital is 10%. What's the present value of this project?

Studies have shown that corporate insiders who possess private information about their companies generally earn higher than market returns after adjusting for risk when trading their own company stocks. Is this finding consistent with the efficient market hypothesis?

A firm has earnings per share of $12.00 and pays out $3.00 per share as dividends at the end of the fiscal year. What is the plowback ratio?

A firm has earnings per share of $12.00 and pays out $3.00 per share as dividends at the end of the fiscal year. It can earn 10% return on equity (ROE) on its projects without raising additional capital from the financial market. Whats the sustainable growth rate for this company?

A firm has earnings per share of $12.00 and pays out $3.00 per share as dividends at the end of the fiscal year. It can earn 10% return on equity (ROE) on its projects without raising additional capital on the financial market. Investors expect a 9% rate of return on stocks facing the same risks. Whats the price of the stock for this company today?

A firm has earnings per share of $12.00 and pays out $3.00 per share as dividends at the end of the fiscal year. It can earn 10% ROE (return on equity). Investors expect an 9% rate of return on stocks facing the same risks. Whats the PVGO for this company? Hint: Before the plowback decision, the company pays out 100% of its earnings. Thus, no growth without plowback.