Problem 12.21 – Hankins, Inc.
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Determine the project required return and the maximum to pay for a project.
Determine the project required return and the maximum to pay for a project.
Given the bond table (includes coupon rate, price quote, maturity, and face value), tax rate, and payments per year… find the aftertax cost of the company’s debt.
Find the cost of equity with the DCF and SML method.
Given EBIT, depreciation, change in net working capital, capital spending, the value of debt, shares outstanding, terminal growth rate, WACC, and tax rate… find the price per share.
Given EBIT, depreciation, change in net working capital, capital spending, the value of debt, shares outstanding, terminal growth rate, WACC, tax rate, year five sales, and price-sales ratio… find the price per share.
Determine the share price for Homes Co. given EBIT and a lot of other data. What is the price per share of the company’s stock?
The firm is considering building a new manufacturing facility that will produce after-tax cash flows in perpetuity. What is the NPV?
Given that the company plans to set up a manufacturing plant to produce new RDSs, the market data on DEI The firm wishes to set up a manufacturing plant to produce radar detection systems (RDS). Compute the cash flow at time 0, the project’s discount rate, the aftertax salvage value of the plant, the OCF, and finally, the NPV and IRR of the project.
Calculate the EPS under three economic scenarios and determine the percentage change in EPS when the economy expands or enters into a recession.
Calculate the EPS under three economic scenarios and determine the percentage change in EPS when the economy expands or enters into a recession… WITH THE TAX RATE.