Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) JH Inc. is thinking of acquiring Verch Inc. JH expects Verch's NOPAT to be= $90 million the 1st year, with no net new investment in operating capital and no interest expense. For 2nd year, Verch is expected to have NOPAT of $200 million. Furthermore, in 2nd year only, Verch will require= $180 million of net new investment in operating capital. Verch's marginal tax rate is 25%. After the second year, the free cash flows and tax shields from Verch to JH will both rise at the constant rate of 3%, JH has determined that Verch's cost of equity is 35%, and Verch presently has no debt outstanding. Suppose that all cash flows happen at the end of year, JH should pay $26 million to acquire Verch. Determine the NPV of proposed acquisition?

2) If MSFT were to pay its present dividend for next 200 years and investors consider the suitable discount rate for this stream of dividends to be 12% what would be current value of dividend stream. What if you suppose that dividend payment is made in 4 quarterly instalments rather than annually?

If you invest an amount of MSFT dividend once years for 30 years how much will accrued value of these investments be worth at the ending of thirty years. Let us say that return on the investments is 2% per year compounded annually.

prepare down actual cash flows of the corporate bond. You can choose the bond. Website that has this information is FINRA. http://finra-markets.morningstar.com/MarketData/Default.jsp.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914412

Have any Question? 


Related Questions in Basic Finance

1 a present an argument for why translation exposure is

1 .(a) Present an argument for why translation exposure is relevant to an MNC. (b) Present an argument for why translation exposure is not relevant to an MNC. 2 .Walt Disney Inc built the EuroDisney theme park in France ...

The carlton corporation has 5 million in earnings after

The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 20. The firm has $4 million in excess cash. a. Compute the current price of the stock. b. If t ...

1 in what sense does an increase in accounts payable

1. In what sense does an increase in accounts payable represent a cash inflow? 2. List several ways to estimate a project's terminal value. 3. What are the tax consequences of selling an investment asset for more than it ...

Assignmentscott and lisa smith recently got married and

Assignment Scott and Lisa Smith recently got married and moved to your area. They are both 30 years old. Scott just finished his residency in internal medicine and has been offered a job at Memorial Hospital as a staff d ...

Assignmentcareers in financefinance is an exciting field in

Assignment Careers in Finance Finance is an exciting field in need of intelligent, skilled people. The job opportunities range from corporate finance; financial planning; investment banking; insurance; and real estate fr ...

Rosa inc has arranged a one-year 2 million credit line with

Rosa Inc. has arranged a one-year, $2 million credit line with its lead bank. The bank set the interest rate at the prime rate plus a spread of 1.50 percent. The prime rate is expected to remain stable at 5.25 percent du ...

Imagine that you have collected the following set of iq

Imagine that you have collected the following set of IQ scores: a . Construct a simple frequency distribution of these scores. b. Construct a grouped frequency distribution of these scores that includes both frequencies ...

Determine whether each of the following hypotheses is

Determine whether each of the following hypotheses is testable and refutable; if not, explain why. a. The color red as seen by males is different from the color red as seen by females. b. A list of three-syllable words i ...

In todays rapidly changing and competitive business world

In today's rapidly changing and competitive business world, it is in important to stay current with financial news and events. Visit a financial-related website like Forbes.com, CNNMoney.com, TheStreet.com, Bloomberg.com ...

1 what is the novelty effect and how does it affect a

1. What is the novelty effect, and how does it affect a study's external validity? 2. Describe one way in which the experimenter may threaten the external validity of the results of a study. 3. How does sensitization thr ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro