Corporate finance chapter 09 valuation of commen stocks

... deposit? – – – Daily rate = 055 / 3 65 = 000 150 68493 Number of days = 3(3 65) = 10 95 FV = 15, 000 / (1.000 150 68493)10 95 = $12,718 .56 Copyright  2007 McGraw-Hill Australia Pty Ltd 55 1 ... Account:   – Daily rate = 052 5 / 3 65 = 0001438 356 2 FV = 100(1.0001438 356 2)3 65 = $1 05. 39 Second Account:   Semiannual rate = 053 9 / = 02 65 FV = 100(1.02 65) 2 = $1 05. 37 • You...

Ngày tải lên: 04/04/2016, 14:26

... Corporate Finance: Part I Cost of Capital Download free eBooks at bookboon.com Corporate Finance Part I: Cost of Capital 1st edition © 2010 bookboon.com ISBN 978-87-7681-568-4 ... bookboon.com Corporate Finance Part I: Cost of Capital Contents Contents Introduction he Objective of the Firm Present value and opportunity cost of capital 3.1 Compoun...

Ngày tải lên: 05/11/2014, 21:10

... Brealey−Meyers: Principles of Corporate Finance, Seventh Edition Front Matter x © The McGraw−Hill Companies, 2003 Preface PREFACE same time we have rewritten Chapter 14 as a free- Of course, ... Educational Version of Other examples of expanded coverage include be- Market Insight In total there are now over a thou- havioral finance (Chapter 13 ) and new international sa...

Ngày tải lên: 06/07/2014, 08:20

... “Economics and Ethics: The Case of Salomon Brothers,” Journal of Applied Corporate Finance (Summer 19 92) , pp 23 28 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I Value Present Value ... opportunity cost of capital Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I Value Present Value and the Opportunity Cost of Capital ©...

Ngày tải lên: 06/07/2014, 08:20

... two years The present value of your year-2 cash flow equals PV ϭ C2 100 ϭ ϭ $86.21 11 ϩ r2 11.0772 33 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition 34 I Value How to Calculate ... 12.1 133 .1 ϩ 13. 3 236 ϩ 24 612 ϩ 61 10,672 ϩ 1,067 1,252,7 83 ϩ 125,278 17,264,116,042 ϩ 1,726,411,604 205,756,782,755 ϩ 20,575,678,275 ϭ Balance ϭ 110 ϭ 121 ϭ 133 .1 ϭ 146.4 ϭ...

Ngày tải lên: 06/07/2014, 08:20

... Depreciation Pretax profits Tax Aftertax profits 2000 2001 2002 2003 5. 84 1 .45 4. 38 1.53 2.85 6 .40 1.60 4. 80 1.68 3.12 7 .41 1.75 5.66 1.98 3.68 8. 74 1.97 6.77 2.37 4. 40 9.39 2.22 7.17 2.51 4. 66 Assets ... and profitability in Chapter 12 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition I Value The Value of Common Stocks CHAPTER © The McGraw−Hill...

Ngày tải lên: 06/07/2014, 08:20

... each of the following statements holds: NPV ϭ Ϫ1,000 ϩ 800 150 150 150 150 150 ϩ ϩ ϩ Ϫ ϭ0 ϩ 50 1 .50 2 1 .50 2 1 .50 2 1 .50 2 1 .50 2 and NPV ϭ Ϫ1,000 ϩ Ϫ 800 150 150 150 150 ϩ ϩ ϩ ϩ 1. 152 11. 152 2 11. 152 2 ... rate of return (4 Ϭ 5) *Rounded Straight-line depreciation over seven years is 400/7 ϭ 57 .14, or $57 ,140 per year † Capital investment is $400,000 in year 16 140 55 57 2...

Ngày tải lên: 06/07/2014, 08:20

... 5.90 5.90 5.90 5.90 5.90 5.90 5.90 2.99 3.75 7.22 6. 68 6. 18 5.71 5.28 4.89 4.52 4. 46 4. 46 4. 46 4. 46 4. 46 4. 46 4. 46 4. 46 4. 46 2.25 (MACRS) Table 6. 4 summarizes the tax depreciation schedules Note ... Pretax profit (6 Ϫ Ϫ Ϫ 9) 11 Tax at 40% 12 Profit after tax (10 – 11) 11.9 71 .6 4.4 76. 0 27.0 9.2 15.5 11.9 Ϫ9 .6 Ϫ3.8 Ϫ5.8 23.9 59 .6 7 .6 67.2 51.3 17.4 15.5 11.9...

Ngày tải lên: 06/07/2014, 08:20

... Cost of Capital 65 45 25 -1 5 Dell Computer -3 5 Aug-96 Jan- 97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-98 Jan-99 Jan-00 Jan-01 Jan-98 Jan-99 Jan-00 Jan-01 85 Return, percent 65 45 25 -1 5 Reebok -3 5 Aug-96 ... Jan- 97 65 45 25 -1 5 Portfolio -3 5 Aug-96 Jan- 97 FIGURE 7. 7 The variability of a portfolio with equal holdings in Dell Computer and Reebok would have been less t...

Ngày tải lên: 06/07/2014, 08:20

... deviation 187 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition 188 II Risk © The McGraw−Hill Companies, 2003 Risk and Return PART II Risk Proportion of days 0.14 0.12 0.10 0. 08 0.06 ... Risk,” Review of Economic Studies 25 (February 19 58) , pp 65 86 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition II Risk © The McGraw−Hill Compani...

Ngày tải lên: 06/07/2014, 08:20

... 10 -2 0 -1 0 10 20 30 -3 0 -2 0 August 198 8– January 199 5 -3 0 -2 0 β = 52 (.10) Exxon Mobil return % 10 -1 0 10 20 30 February 199 5– July 2001 -3 0 20 -1 0 -2 0 -3 0 -1 0 -1 0 -2 0 R = 28 Market return, % -1 0 ... Market return, % -3 0 -2 0 -1 0 β = 2.02 (.38) 30 10 20 30 Market return, % -1 0 -3 0 -2 0 -1 0 -1 0 -2 0...

Ngày tải lên: 06/07/2014, 08:20

... the cost of capital was percent in nominal terms 283 Visit us at www.mhhe.com/bm7e Brealey−Meyers: Principles of Corporate Finance, Seventh Edition Brealey−Meyers: Principles of Corporate Finance, ... mod- Brealey−Meyers: Principles of Corporate Finance, Seventh Edition III Practical Problems in Capital Budgeting 10 A Project is Not a Black Box © The McGr...

Ngày tải lên: 06/07/2014, 08:20

... the value of existing one- and two-year-old plants? Existing plants must continue using the original tax depreciation schedule Brealey−Meyers: Principles of Corporate Finance, Seventh Edition ... million ϩ a NPV ϭ Ϫ1,000 ϩ a 11. 202 t 11. 202 20 tϭ1 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition III Practical Problems in Capital Budgeting 11 Whe...

Ngày tải lên: 06/07/2014, 08:20

... investment (ROI) of 130/1,000 ϭ 13 or 14 In practice, investment would be measured as the average of beginning- and end -of- year assets See Chapter 29 321 Brealey−Meyers: Principles of Corporate Finance, ... ϩ.093 ϩ .126 † Rate of return, percent 12 11 10 Economic rate of return Book rate of return 10 15 20 25 Rate of growth, percent Brealey−Meyers: Principles...

Ngày tải lên: 06/07/2014, 08:20

... discussed in Chapter 18 Brealey−Meyers: Principles of Corporate Finance, Seventh Edition IV Financial Decisions and Market Efficiency CHAPTER 13 13 Corporate Financing and the Six Lessons of Market ... measure of relative performance Brealey−Meyers: Principles of Corporate Finance, Seventh Edition IV Financial Decisions and Market Efficiency 13 Corporate...

Ngày tải lên: 06/07/2014, 08:20