Question
I need help ASAP please! 1. You are considering a project that requires an initial investment of $105,000 with a cost of capital of 12%.
I need help ASAP please!
1. You are considering a project that requires an initial investment of $105,000 with a cost of capital of 12%. You expect the project to have a five-year life, and produce cash flows of $19,000 in year 1, $32,000 in year 2, $64,000 in year 3, $26,000 in year 4 and $10,000 in year 5. What is this projects net present value?
2.
You are considering a project that requires an initial investment of $115,000 with a cost of capital of 9%. You expect the project to have a five-year life, and produce cash flows of $27,000 in year 1, $39,000 in year 2, $56,000 in year 3, $27,000 in year 4 and $10,000 in year 5.
What is this projects IRR?
3.
You are considering a project that requires an initial investment of $110,000 with a cost of capital of 9%. You expect the project to have a five-year life, and produce cash flows of $17,000 in year 1, $39,000 in year 2, $56,000 in year 3, $27,000 in year 4 and $10,000 in year 5.
What is this projects Discounted Payback Period?
4.
At year end, Sampson Companys balance sheet showed total assets of $80 million, total liabilities of $50 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $2.6 million. If the average P/E multiple in Maltas industry is 16, (and this is an average stock) what should be the price of Sampsons stock?
5.
PLT Company just paid a dividend of $2.00. The dividend is expected to grow by 8% this year, 6% in year two and 5% in year three. Then, beginning in year four, the dividend will begin growing at a constant rate of 4%. With a required return of 13%, what is the stock worth today?
6.
A common stock currently has a beta of 1.7, the risk-free rate is 5 percent annually, and the market return is 12 percent annually. The stock is expected to generate a constant dividend of $5.70 per share. A pending lawsuit has just been dismissed and the beta of the stock drops to 1.2. The new equilibrium price of the stock will be
7.
Calculate operating cash flow if a firm has sales of $1,000,000, depreciation of $220,000 operating profit (EBIT) of $280,000, interest expense of $50,000, and a tax rate of 25%.
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