-XYZ stock is expected to pay a dividend of $3.25 for the next 5 years. After that, the dividend will increase to $3.75 and continue indefinitely. XYZ’s cost of equity capital is 7%. Using the Dividend Discount Model, please calculate the value of XYZ stock today. If the cost of equity capital increases to 8% after 5 years, how does that affect the price? 2 What is the value of a perpetuity of $100 years paid annually forever at a discount rate of 7%? What is the value of the annuity of $100 paid annually for the next 25 years? Please demonstrate how an annuity is the difference between two perpetuities. Draw a number line.3 Evaluate the following 7-year project: you invest $1,000 today, Year 1 pays you back $300, Year 2 pays you $400, Year 3 pays you $300. In Year 4 you invest another $500. Year 5 pays you $200, Year 6 pays you $200, and Year 7 pays you $400. Use a discount rate of 7%. What is the NPV of this project? What is the IRR? Would you do project? Please draw a number line of this project.4 You have an opportunity to buy a Magic Box. The Magic Box will pay you $200 per year forever. Using a discount rate of 5% what is the value of the Box? If the payout figure grows by 1% every year how does that change the value of the Box?5 When evaluating a project, how would you use NPV and IRR? Which is the more important metric? What general rule is always true when evaluating a project using NPV? If IRR is positive does this mean it’s a good project?
Sam is buying a new set of AirPods. The AirPods was selling for $219
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Rachna is considering a life insurance plan that will require her
Question Rachna is considering a life insurance plan that will require her to pay a premium of $150 every year for the next 45 years. She wants to make sure that she is able to make this payment and wants to put away a lump sum today in her bank to cover all future payments. How much would she need to deposit in her bank if the annual interest rate on her deposit account is 3%? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)
Exercise 3-4A (Algo) Determining variable cost from incomplete cost data LO 3-1
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Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO
Question Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1 Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352,000, and fixed selling and administrative costs are $266,000 per year. RequiredDetermine the break-even point in units and dollars using each of the following approaches:Use the equation method.Use the contribution margin per unit approach.Use the contribution margin ratio approach.do a contribution margin income statement for the break-even sales volume
Can anyone help with this hypothetical problem?
Question Can anyone help with this hypothetical problem?
You purchased for $5 a put on IBM with a strike price of $75 and an August expiry in 45 days. The annually compounded risk-free rate is 0%. -What is your profit if the price of IBM in August is $70? -What is your maximum profit? -What is your breakeven point?
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