b) 0 1 $3.55 $ 3.91 $ Calculate the price of MSFT using the PE Ratio to calculate the Terminal Value.(assume Net Income per share of $5.93 on year 3) Year FCFE 3 2 4.30 $ 4.42 F101*(1+G102) Growth Rate 10% 10% Terminal Value Cash Flows $ 3.91 $4.30 $69.53 =G101+G103 Share Price 3.0% $65.10 G101*(1+G102)/(C82-G102) $59.34 =NPV(C82,E104:G104)
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Find the share price given the following information. The setup here is all correct, but the answer should be $66.61 per share. What am I doing wrong? Discount rate (Ke) = 10%.
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- Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a. Using the financial statements shown here for Lan Chen Technologies, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for 2020. The federal-plus-state tax rate is 25%. b. Assume there were 15 million shares outstanding at the end of 2019, the year-end closing stock price was 65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for 2020. Lan Chen Technologies: Income Statements for Year Ending December 31 (Millions of Dollars) Lan Chen Technologies: December 31 Balance Sheets (Thousands of Dollars)Financial leverage MicrosoCortrepotied (MSFT) reported the following data (in millions) for a tern year Compute the profit margin, asset turnover, and financial leverage metrics using the expandedDuPont formula. Round profit margin, asset turnover, and financial leverage to two decimalplaces.Round return on stockholders’ equity to one decimal place.1, Given the price-earnings ratio of 12, EPS of P2.18 and payout ratio of 75%, compute for the dividend yield. 2. A company's sales last year were 615,000 and its net income was 45,800. It has 465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was 1,825,600. In the year 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively 4. A company has 6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a price of 30.70 each. Calculate the difference of the firm's market and book values per share (2 decimal places) 5. P240,000 will be deposited in a fund at the beginning of each month for 5 years. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years…
- please can you answer with explain with equations for each column? State Probability, p(s) End-of-Year Price Annual Dividend HPR P(HPR) HPR Diviation from E(R_) Diviation^2 PxDiviation^2 Super high growth 9.50% $62 $3 4.84% 0.0000% 0.0000% High growth 18.80% $60 $3 5.00% 0.0000% 0.0000% Normal growth 40.10% $56 $2 3.57% 0.0000% 0.0000% Low growth 20.70% $51 $2 3.92% 0.0000% 0.0000% No growth 10.90% $46 $0 0.00% 0.0000% 0.0000% E(R_)= 0.00% Var(R_)= 0.0000% StD(R_)= 0.0000%Use the information below to calculate WACC given the Market Capitalization of the company: Market Cap = 193.2 Million EBIT = 17.2 Million Depreciation = 4.2 Million Capital Expenditures = - 3.8 Million Change in W/C = 2.1 Million growth = 7% FCF = ? WACC = ?Salalah Mills has the following returns. Beginning value=OMR. 200, End of Year1= OMR. 265, End of Year 2=OMR. 320, End of Year 3=OMR. 390, End of End of Year 4=OMR 450. The Average Annual Growth rate (AAGR) of the company is Select one: a. 26.50% b. 26% c. 25.15% d. None of the options e. 22.62%
- A7X Co. has an ROA of 9 percent and a payout ratio of 19 percent. What is its internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Consider the following informationYear Profit Ending book value of assets Ending book value of debt1 $100 $1 030 $7202 $120 $1 060 $7403 $60 $1 000 $800At the end of year t, the company’s book value of assets and debt are $1 000 and $700, respectively. The analyst expects that after year t+3 profit will be $0 and the book values of assets and debts will not change from the prior year. The cost of equity (WACC) is 10 per cent. Calculate the present value of free cash flows for the end of each year.Given the following possible returns (dividends plus capital gains) over the coming year from P100,000 investment in General Motors common stock: State of Economy Profitability ReturnRecession 0.20 P-1,000 Normal year 0.60 1,500Boom 0.20 2,500What is the coefficient of variation?
- Break down step 2 properly 2. Rebound Tourism Inc. Share valuation: Last year price = DividendRequired rate of return - Growth rate$40=$0.509%-gg = 7.75% Current year price = Dividend *(1+Growth rate)Required rate of return - Growth rate=$0.50×1+7.75%9%-7.75%=$43.1 So, the intrinsic price of Rebound Tourism Inc.is $43.1.A firm uses a target payout ratio of 0.49. In recent years, its earnings per share (EPS) has been $4.22 and using that EPS, it has just paid its annual dividend of $2.07 per share. One year from now, the firm expects its EPS to increase to $4.97 but does not believe that the entire increase in its earnings is permanent. It intends to select its dividend amount according to the Lintner model, using a speed of adjustment coefficient of 0.62. Question content area bottom Part 1 Part A: What dividend will the firm issue in one year?Dividend in one year: $enter your response here per share. (Enter your answer rounded to two decimal places and use the rounded value in Part B).Part B: If the EPS remains at its higher value for an additional year, what dividend will the firm issue in two years?Dividend in two years: $enter your response here per share. (Enter your answer rounded to two decimal places).help me answer these pleaseeeeee 1. Given a price-earnings ratio of 12, EPS of P2.18, and payout ratio of 75%, compute for the dividend yield. (use 2 decimal places for your final answer, express in percentage) 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively. (separate the values by a comma followed by a space ", ") 4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for…