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A firm’s stock is selling for $134. They just paid a $4 dividend and dividends are expected to grow at 8% per year.
.1. What is the required return?
.2. What is the dividend yield?
.3. What is the capital gains yield?
Suppose your firm earns $9 million in taxable income.
What is the firm's tax liability?
What is the average tax rate?
What is the marginal tax rate?
50,000 15%
50,001 - 75,000 25%
75,001- 100,000. 34%
100,001-335,000. 39%
335,001-10,000,000. 34%
10,000,001-15,000,000. 35%
15,000,001-18,333,333. 38%
18,333,334- 34%
4. What is the minimum deposit you would need to reduce monthly repayments to $150 on the best value loan?
Deposit: $10,000
Rate: 5.95%
Time: 5 years
Compounding Periods: 12
. Following information is available in respect of A Ltd Particulars As on 31.3.2019 (Rupees. In Lacs) As on 31.3.2020 (Rupees. In Lacs) Investment in Financial Assets - 100 Equity Share Capital 150 160 Long term Loans taken 100 200 Dividend paid - 26 Dividend received - 10 Interest received - 15 a. Prepare the cash flow from financing activities from the above information and give reasons for each element whether these elements belongs to financing activities or not
b. Calculate the relationship between the debt and equity for the year 2019 and 2020, and comment
A retirement policy offers 20 yearly payments of 200,000/= beginning at the age
of 65. What would be the cash equivalent of these payments if money can earn
interest at an annual rate of interest of 8% compounded annually?
Suppose that you can invest your money at an annual interest rate of 8%, compounded quarterly. How much should you invest today so that it will be worth $8000 in 6 years?
PRESENT VALUE Word Problems
Note: The Present Value Formula is PV= FV/ (1+r)^n
1. Angelo wants to renovate his house in 3 years. He estimates the cost to be P300,000. How much must Angelo invest now at 8% interest compounded quarterly, in order to have P300,000, 3 years from now.
2. Arnold and Azura want to save P500,000 in 5 1⁄2 years to renovate their rest house. If the bank of Amber is paying 8% interest compounded quarterly, how much must they deposit now in order to have the money for the project?
3. Find the present value of P85,000, if the interest rate is 6% compounded quarterly, for 10 years.
4. Ashley and Aileen want to accumulate P300,000, 17 years from now, as a college fund for their baby daughter, Aria. Use the present value formula to calculate how much they must invest now, at an interest rate of 8% compounded semi-annually, in order to have P300,000 in 17
years.
1. A debt of P80,000 is to be amortized with P25,000 being paid at the end of every six months. The interest rate is 6% compounded semi-annually. Construct an amortization schedule.
2. A debt of P40,000 is to be amortized with P8,000 being paid at the end of each quarter. The interest rate is 16% compounded quarterly. Construct an amortization schedule.
Lauren plans to deposit $6000 into a bank account at the beginning of next month and $250/month into the same account at the end of that month and at the end of each subsequent month for the next 5 years. If her bank pays interest at a rate of 4%/year compounded monthly, how much will Lauren have in her account at the end of 5 years? (Assume she makes no withdrawals during the 5-year period. Round your answer to the nearest cent.)
$
The Chicago Mercantile Exchange (CME) E-mini S&P 500 index futures contract for December 2021 (symbol: ESZ1) closed at 3845.00. Suppose that the S&P 500 index closed at 3875.00, and that the interest rate is 2%. What is the implied dividend yield on the index?
#339914 on Dec 2023