Question
Valley Inc. is expected to pay a dividend of $2.00 per share at the end of the year, and that dividend is expected to grow
Valley Inc. is expected to pay a dividend of $2.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 3.2% per year in the future. The companys beta is 1.40, the market risk premium is 5.50%, and the risk-free rate is 2.50%. What is the companys current stock price?
$23.81 | ||
$28.57 | ||
$62.50 | ||
$29.49 |
ABC Inc. is considering the purchase of a new machine for $130,000, installed. This machine is included in CCA class 8 (20%). The firm expects to the machine to have a salvage value of zero after six years. Determine the present value of the CCA tax shield if the firm' s marginal tax rate is 25%, its weighted average cost of capital (WACC) is 6% and the firm has other equipment in the asset class. Assume that the half-year rule applies.
$19,090.91 | ||
$25,000.00 | ||
$24,292.45 | ||
$14,035.64 |
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