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QUESTION 16 Worldwide Inc. has decided to acquire anocher firm by purchasing the firm's outstanding stock. Analysts forecasta period of 2 years of extraordnary growth
QUESTION 16 Worldwide Inc. has decided to acquire anocher firm by purchasing the firm's outstanding stock. Analysts forecasta period of 2 years of extraordnary growth (20 percent), followed by 1 year of unusual growh 110 percent) and finaly a normal(sustainable) growh rate of 5 o1.0000 percent ennusy indefnitely. The last dividend was D0-S1.00 per share and the required return is 8.6%. Whac ?? D4 (ie. the dividend expected st end of period 4)? 1.286 0 1.584 o1.697 0 1.440 QUESTION 17 and ta as by S6.000 annual The pro act wi 8,000 per year in depreciat A new capital bud ng prow! s beng considered. Tha pro ect wil reduca cur anc man ac u ring ? anses by $5,000 annual required equipment, The firms marginal ta rat. is 40 percent whe is the proiect's after-tax e e atinELash flows CCFY and increase earnin s re en e baforg dapreciato neraca of the 11.000 O 3,000 6.600 0 14,800 9.800 insufficient information to compute OCF IOpersting Cash Flowa) QUESTION 18 ?: the end of each MONTH for the ne t 2S years to fund your recrement ASSUME thatin 2 years you w I need SS 0 000 or your retre ent e rebre ent?3ctually 2S yea sway, and you want to ha eso ed SS00.000L f you will make eAs a amount of the MONTHLY payments required to fund your na rement? Assuma tra 8% APR discount raca with monthl compounding for this question. pam en at the 3859 3503 570 526 incufficient information to compure QUESTION 19 Assume that you invested $S000 in an account trati: expected to average 1 0% return per year for the next 20 years. How much do you expect to nave in the account at tre end of the 30 years? ? s.000 87,247 o 150000 O 822470
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