## [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.

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

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.

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

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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