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- бy %25 Question 3: Sohar Company's financial information is given in the table below. Year 2019 2020 Calculate: Sales (OMR) Fixed Costs 90000 Variable Costs 225000 240000 405000 450000 120000 a) PV ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000Given are three FOREX quotes as follows: $1/€ $0.5/SF SF2.5 / € What will be arbitrage profit if you start the process with €1,000?Q2: DEK Corporation has ROE of 20% and a retention (plowback) ratio of 60% in 2020. Suppose the require rat of return for Hunter corporation is 14%. (1) What is the dividend payout rate ? < (2) Given all the information above ,what is the Price Earning ratio (PE ratio) of Hunter Corporation ? <
- • Exercise 13.3 P416-445 a. Calculate the price of a firm with a plowback ratio of .60 if its ROE is 20%. Current earnings E., will be $5 per share, and k = 12.5%. b. What if ROE is 10%, which is less than the market capitalization rate? Compare the firms price in this instance to that of a firm with the same ROE and E, but a plowback ratio of b=0.D6 AMXL price is at 16.20, AMXL is expected to pay a dividend of 16 cents in 30 days and pay a dividend of 16 cents in 60 days. The 30-day risk-free rate is 8% and the 60-day risk-free rate is 8.60%. Do the following operations.a) Calculate the price of the 45-day forwardReported $ Forecast Horizon Period Terminal millions 2018 2019 2020 2021 2022 Period Sales $100,629 $107,673 $115,210 $123,274 $131,904 $134,542 NOPAT 11,228 12,059 12,904 13,807 14,773 15,069 NOA 23,758 25,419 27,198 29,102 31,139 31,761 Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $25,504 million. Required a. Estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model as of February 3, 2019. Note: Do not round until your final answer; round your final answer to two decimal places. Stock price per share: $ b. Home Depot stock closed at $176.76 on March 28, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price?
- Inputs Annual Coupon Rate 3.70% Number of Years 6 Face Value (PAR) $1,000 Price $1,100.27 In Excel: a. What is the YTM? b. Calculate Macaulay’s duration and co c. Plot the price-yield relationship using Excel. Hint: (Calculate prices for different yields, e.g., yields from 0.5% to 23.5%; then your x axis is yields and y axis prices. The plot should show an inverse relationship .IRR 1) Nominal Value: N= |= Emission Date Valuation Date: New Price: What is the new IIR? 2) Nominal Value: N= |= Emission Date Valuation Date: New Price: What is the new IIR? NPV 3) Par Value N= |= Emission Date: Buy on: Opportunity Rate What is the new NPV? $ 3,600,000 2 years 10% N.A.Q. 7/5/2023 8/5/2024 $ 3,550,000 XXX % EA ? $ 202,000 3 years 18% N.A. per year 5/15/2023 6/15/2024 $ 201,500 XXX % EA ? $ 100,000,000 2 years 15% N.A. Semi-annual 8/23/2024 4/23/2025 13% EA $$$?Furniture Inc. has a beta coefficient of 0.7 and a required rate of return of 15%. The market risk premium is currently 5%. If the inflation premium increases by 2%, and Furniture Inc. acquires new assets that increase its beta by 50%, what will be Furniture Inc.'s new required rate of return? 14.50% а. b. 22.85% С. 18.75% d. 15.35% Plastic Inc.'sstock has an estimated beta of 2 with arequired rate of return is 12%. Paper Inc.'s stock has a beta of 1, and the risk-free rate is 2%. Determine the required rate of return on Paper Inc.'s stock? 7.0% а. b. 8.4% c. 10.0% d. 11.5% Company K has a beta of 1.6, while Company L's beta is 0.7. The risk-free rate is 7%, and current market premium is 5%. Currently, the expected rate of inflation built into the risk-free rate rises by 1%, the real risk-free rate remains constant, and the required return on the market rises to 14%. There is no change in the betas of both company. When these changes occurs, by how much will the required return on…
- QUESTION 17 City plc plans to buy Utd plc. The current distributable earnings of Utd plc are £12m. City estimates that it will be able to grow future earnings of Útd by'4% per annum. It is proposing to use an earnings yield of 11% in the valuation of Utd. Using the Earnings Yield method, what value will City put on Utd? O A. £178m O B. £109m OC. £200m O D.£114m O E. £222mThe chart below shows the US Ireasury Yield Curve as of December 16, 2021 (see below). Date 1 1 Mo 2 Mo З Мо 6 Мо 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr 12/16/2021 0.04% 0.06% 0.05% 0.13% 0.26% 0.64% 0.92% 1.19% 1.36% 1.44% 1.91% 1.87% Based on the Treasury Yield Curve shown above, answer the following two questions: A) What unusual feature presents itself in the curve? Please be specific. B). 20-year liquidity premium is 0.70%. Using the liquidity premium theory, what is your forecast of the 10-year rate, 10 years from today? Assume the the 10-year liquidity premium is 0.30% and that theExercise 13.3 P416-445 a. Calculate the price of a firm with a plowback ratio of 0.60 if its ROE is 20%. Current earnings E₁, will be $5 per share, and k = 12.5%. b. What if ROE is 10%, which is less than the market capitalization rate? Compare the firm's price in this instance to that of a firm with the same ROE and E, but a plowback rate of b = 0.