1 2 3 | | | | D0 = 2.00 D1 D2 D3 Step 1: Calculate the required rate of return on the stock: rs = rRF + (rM - rRF)b = 7.5% + (4%)1.2 = 12.3%. Step 2: Calculate the expected dividends: D0 = $2.00 D1 = $2.00(1.20) = $2.40 D2 = $2.00(1.20)2 = $2.88 D3 = $2.88(1
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section are to be included in an appendix. • Cost of Equity (Common Stock) • Beta from Regression and two Betas from analysts • Beta Chosen for CAPM and why • Capital Assets Pricing Model (include how determined RF and[ RM or (RM – RF)] • Discounted Cash Flow (DCF) (only if dividends – include how determined) • Own-Bond-Yield-plus-Judgmental-Risk-Premium (include how determine risk premium) • Cost of Preferred Stock • Cost of Debt (make sure to include table that lists all bond issues
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Compute the net cash from operating activities based on the above information. 4. (TCO F) Pig Builder's, Inc. shows the following as of December 31, 2012. - Acquired 50% of Wolf Corp's common stock for $160,000 cash, which was borrowed from Granny's Bank. - Issued 5,000 shares of its preferred stock for land having a fair value of $320,000 - Issued 500 of its 11% debenture bonds, due 2017, for $392,000 cash - Paid $120,000 toward bank loan. - Purchased a patent for $220,000 cash - Sold available
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6-6 – Prob 6-1 – Prob 6-2 – Prob 6-7 Week 4 Fin 515 Week 4 Weekly Problems and Midterm Exam Prob 7-2 – Prob 7-4 – Prob 7-5 –Prob 9-2 –Prob 9-4 – Prob 9-4 – Prob 9-5 – Prob 9-6 – Prob 9-7 FIN 515 Week 4 : Business Valuation and Stock Valuation - Exam 1. (TCO A) Which of the following statements is CORRECT? (Points : 10) 2. (TCO G) Which of the following statements is CORRECT? (Points : 10) 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity
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6-6 – Prob 6-1 – Prob 6-2 – Prob 6-7 Week 4 Fin 515 Week 4 Weekly Problems and Midterm Exam Prob 7-2 – Prob 7-4 – Prob 7-5 –Prob 9-2 –Prob 9-4 – Prob 9-4 – Prob 9-5 – Prob 9-6 – Prob 9-7 FIN 515 Week 4 : Business Valuation and Stock Valuation - Exam 1. (TCO A) Which of the following statements is CORRECT? (Points : 10) 2. (TCO G) Which of the following statements is CORRECT? (Points : 10) 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity
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6-6 – Prob 6-1 – Prob 6-2 – Prob 6-7 Week 4 Fin 515 Week 4 Weekly Problems and Midterm Exam Prob 7-2 – Prob 7-4 – Prob 7-5 –Prob 9-2 –Prob 9-4 – Prob 9-4 – Prob 9-5 – Prob 9-6 – Prob 9-7 FIN 515 Week 4 : Business Valuation and Stock Valuation - Exam 1. (TCO A) Which of the following statements is CORRECT? (Points : 10) 2. (TCO G) Which of the following statements is CORRECT? (Points : 10) 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity
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considered a low interest loan on that amount being taken,. Task II: * For Raytheon Co. (RTN): Stock Price=$46.27 Dividend paid=$0.31 Quarterly So, Annual Dividend payment=4*$0.31=$1.24 Dividend Growth=5% For Boeing Co. (BA): Stock Price=$68.14 Dividend paid=$0.42 Quarterly So, Annual Dividend payment=4*$0.42=$1.68 Dividend Growth=5% For Lockheed Martin Corporation (LMT): Stock Price=$75.15 Dividend paid=$0.57 Quarterly So, Annual Dividend payment=4*$0.57=$2.28 Dividend Growth=5%
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Southern New Hampshire University Investigative Report The Capital Structure of Microsoft Corporation Zhang Yue Capital Budgeting & Financing, Fin 630 David Fehr June 3rd, 2013 Abstract At the first part, we are going to introduce Microsoft Corp. and how it works. Then, we try to figure out the WACC of Microsoft based on the data like income statements, balance sheets, cash flow statements, and some data searched from Yahoo! And Google Finance. At last, we are going to analyze and
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deals with matters related to money and the markets. • Efficient market- Efficient market is the market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available information. Stock markets are considered the best examples of efficient markets. • Primary market- Primary market is the location where the securities are issued for the first time on exchange. In a primary market, the investor does not buy from another investor and
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[pic] Master in Business Administration COURSE SYLLABUS Investment Banking And Structured Finance Analytics Course Code: IBSFA Faculty: Prof. E. B. Perez Course Description This is an advanced finance course suited for finance majors. However, the focus is on the practice and business of investment banking. Corporate finance skills are assumed, as well as concepts regarding structured finance. Grading Class Participation 50% Class Presentation 50%
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