Questions 1. According to ValueLine estimates in Figure 1, James River’s expected annual dividend growth rate from the 91–93 to 97–99 period is 5.50%, and the next dividend (1995) is expected to be $0.60. Assume that the required return for James River was 8.36% on January 1 1995 and that the 5.50% growth rate was expected to continue indefinitely. a. Based on the Constant Growth Rate or Gordon Model, what was James River’s price at the beginning of 1995?
Questions 1. According to ValueLine estimates in Figure 1, James River’s expected an¬nu¬al dividend growth rate from the 91–93 to 97–99 period is 5.50%, and the next dividend (1995) is expected to be $0.60. Assume that the re¬quired return for James River was 8.36% on January 1 1995 and that the 5.50% growth rate was expected to continue indefinitely. a. Based on the Constant Growth Rate or Gordon Model, what was James River’s price at the beginning of 1995?
The net cash inflow and cash outflow are calculated using sales and production figures for the next 8 years. The unit cost from the first year is £0.89 which is the cost per mashing without depreciation and divided by 13,000 bottles. From this information provided, the cost will increase by 3.5% and also the selling price will increase by 4% every year (reference 4). These figures are based on the current rate inflation of 4% which is shown in appendix 9 The capital allowances are worked out on cased of 20% (Reference 5) and the annual investment allowance is £100,000 is available (Reference 6) in the first year which is restricted to £87,359. This figure is substrated from the acquisition giving a result of £332,641 which is the written down value.
Question: : (TCO D) A company issues $5,000,000, 7.8/%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, how much interest expense will be recognized in 2010? 15.
After-tax net cash flows are then expected to grow at a rate of 4% per year for 7 years, ending 8 years from today. In each year after that in perpetuity, after-tax net cash flows are expected to grow at a more sustainable rate of 2% per year. The project’s cost of capital is 15%. (a) [2] What is the terminal value of the project at the end of year 8? Terminal value at the end of year 8 is the value at that time of the after-tax net cash flows that the project is expected to provide after that date.
Question 23 Which of the following statements is CORRECT? Question 24 Which of the following bonds has the greatest interest rate price risk? Question 25 A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT? Question 26 Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as
The current liabilities are what is owed and is expected to be paid off on one year. The long term liabilities are what are owed for a longer period of time that may include interest. • What were the company’s revenues (or net revenues) for the last 3 annual reporting
How much should the annual loan payments be? (Assume annual compounding. )-7384 A retirement plan guarantees to pay to you or your estate a fixed amount for 20 years. At thetime of retirement you will have $73,425 to your credit in the plan. The plan anticipates earning9% interest.
The mathematical formula for I X(N+ 1 calculating the denominator is N 1). The numerator will be the number of payments remaining, including the present payment. Thus, the borrower would accrue 30/465 (or 6.45%) of the total interest in the first year, 29/465 (6.24%) in the second year, and so on until the 30th year, when 1/465 (.22%o) of the total interest would be accrued. See, e.g., SEN. COMM. PRINT, supra note 7, at 251 n.7 (example of Rule of 78s); H.R.
$9,213. c. $9,234. d. $9,324. 99. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?