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[answered] Campbell Soup Co. (CPB) paid a $0.652 dividend per share in


Very Easy 11 Finance questions.I just don't have time to do them.Many questions are similar to each other.3 attempts provided.Just need the final answers


Campbell Soup Co. (CPB) paid a $0.652 dividend per share in 2003, which grew to $0.79 in 2006. This

 

growth is expected to continue.

 

What is the value of this stock at the beginning of 2007 when the required return is 8.2 percent? (Round

 

the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.) A fast-growing firm recently paid a dividend of $0.70 per share. The dividend is expected to increase at a

 

10 percent rate for the next three years. Afterwards, a more stable 5 percent growth rate can be

 

assumed.

 

If a 6 percent discount rate is appropriate for this stock, what is its value today? (Do not round

 

intermediate calculations. Round your final answer to 2 decimal places.) A fast-growing firm recently paid a dividend of $0.90 per share. The dividend is expected to increase at a

 

20 percent rate for the next four years. Afterwards, a more stable 13 percent growth rate can be

 

assumed.

 

If a 14.5 percent discount rate is appropriate for this stock, what is its value? (Do not round

 

intermediate calculations. Round your final answer to 2 decimal places.) You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy

 

backhand. You estimate the sales price of The Ultimate to be $370 per unit and sales volume to be 1,000

 

units in year 1; 1,250 units in year 2; and 1,325 units in year 3. The project has a 3-year life. Variable

 

costs amount to $210 per unit and fixed costs are $100,000 per year. The project requires an initial

 

investment of $156,000 in assets, which will be depreciated straight-line to zero over the 3-year project

 

life. The actual market value of these assets at the end of year 3 is expected to be $32,000. NWC

 

requirements at the beginning of each year will be approximately 25 percent of the projected sales during

 

the coming year. The tax rate is 30 percent and the required return on the project is 11 percent. (Use SL

 

depreciation table)

 

What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign.

 

Do not round intermediate calculations. Round your final answers to 2 decimal places.)

 

Year

 

Total cash flow 0 1

 

$ 2

 

$ KADS, Inc., has spent $460,000 on research to develop a new computer game. The firm is planning to

 

spend $260,000 on a machine to produce the new game. Shipping and installation costs of the machine

 

will be capitalized and depreciated; they total $56,000. The machine has an expected life of three years, $ a $81,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue from the new

 

game is expected to be $660,000 per year, with costs of $310,000 per year. The firm has a tax rate of 35

 

percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by

 

$130,000 at the beginning of the project.

 

What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign.

 

Round your answers to 2 decimal places.)

 

Year 0 1

 

$ FCF 2

 

$ 3

 

$ You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You

 

estimate the sales price of The Tiff-any to be $450 per unit and sales volume to be 1,200 units in year 1;

 

1,325 units in year 2; and 1,000 units in year 3. The project has a 3-year life. Variable costs amount to

 

$250 per unit and fixed costs are $100,000 per year. The project requires an initial investment of

 

$150,000 in assets, which will be depreciated straight-line to zero over the 3-year project life. The actual

 

market value of these assets at the end of year 3 is expected to be $30,000. NWC requirements at the

 

beginning of each year will be approximately 20 percent of the projected sales during the coming year.

 

The tax rate is 34 percent and the required return on the project is 10 percent.

 

What is the operating cash flow for the project in year 2? Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You

 

will be replacing 5 fully-depreciated vans, which you think you can sell for $3,900 apiece and which you

 

could probably use for another 2 years if you chose not to replace them. The NV vans will cost $38,000

 

each in the configuration you want them, and can be depreciated using MACRS over a 5-year life.

 

Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $4,600 each. If

 

your cost of capital is 10 percent and your firm faces a 40 percent tax rate, what will the cash flows for

 

this project be? (Round your answers to the nearest dollar amount.)

 

Year

 

FCF 0 1 $ $ 2

 

$ 3

 

$ 4

 

$ FedEx Corp. stock ended the previous year at $123.79 per share. It paid a $1.80 per share dividend last

 

year. It ended last year at $127.09.

 

If you owned 470 shares of FedEx, what was your dollar return and percent return? (Round your

 

percent return answer to 2 decimal places.) Dollar return $ Percent return % A corporate bond that you own at the beginning of the year is worth $890. During the year, it pays $48 in

 

interest payments and ends the year valued at $880.

 

What was your dollar return and percent return? (Round your percent return answer to 2 decimal

 

places.)

 

$ Dollar return

 

Percent return % Table 9.2 Average Returns for Bonds

 

Low-risk bonds

 

1950 to

 

1959

 

1960 to

 

1969

 

1970 to

 

1979

 

1980 to

 

1989

 

1990 to

 

1999

 

2000 to

 

2009 Average 2.0% Average 4.7 Average 6.7 Average 8.5 Average 4.6 Average 2.5 Table 9.4 Annual Standard Deviation for T-Bills

 

1950 to 1959

 

1960 to 1969

 

1970 to 1979

 

1980 to 1989

 

1990 to 1999

 

2000 to 2009 Low-risk bonds

 

1.1%

 

1.9

 

2.2

 

2.7

 

1.2

 

1.9 Use the tables above to calculate the coefficient of variation of the risk-return relationship in T-bills during

 

each decade since 1950. (Round your answers to 2 decimal places.)

 

Decade

 

1950s CoV 1960s

 

1970s

 

1980s

 

1990s

 

2000s The table below shows your stock positions at the beginning of the year, the dividends that each stock

 

paid during the year, and the stock prices at the end of the year.

 

Company

 

Shares

 

Johnson Controls

 

550

 

Medtronic

 

400

 

Direct TV

 

700

 

Qualcomm

 

100 Beginning of Dividend

 

Year Price per Share

 

$73.11

 

$1.21

 

57.77

 

0.45

 

25.14

 

43.28

 

0.41 End of

 

Year Price

 

$86.02

 

53.71

 

24.59

 

39.12 What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.)

 

Portfolio Return

 

Dollar return

 

Percentage return $

 

%

 


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