Finance Answers

what do accountants and bookkeepers use difference names for accumulated profit?

What expenses do not afeect the cash flow?

What is the future value in year 25 of the following cash flow stream given an expected return of 6.5% annually? All cash flows occur at the end of the year.
Year 1 $20,000
Years 2-5 $40,000 per year
Year 6 $120,000
Years 7-10 $10,000 per year

‘Changes in dividend provide a signal to the market regarding the expected future performance of the company.’ Critically evaluate this statement on the basis of empirical evidence documented in finance literature

Yassein is looking to refinance his home because rates have gone down from when he bought his house 10 years ago. He started with a 30-year fixed-rate mortgage of $288,000 at an annual rate of 6.5%. He can now get a 20-year fixed-rate mortgage at an annual rate of 5.5% on the remaining balance of his initial mortgage. (All loans require monthly payments.) In order to re-finance, Yassein will need to pay closing costs of $3,500. These costs are out of pocket and cannot be rolled into the new mortgage. How much will refinancing save Yassein? (i.e. What is the NPV of the refinancing decision?)

Sully Corp. currently has an EPS of $3.90, and the benchmark PE for the company is 38. Earnings are expected to grow at 10 percent per year.

a. What is your estimate of the current stock price? (Round your answer to 2 decimal places. (e.g., 32.16))

Current stock price $

b. What is the target stock price in one year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Target stock price $

c. Assuming the company pays no dividends, what is the implied return on the company’s stock over the next year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Implied return of stock %