Problem 4-28, Permian Partners
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Determine the share price and EPS/P ratio for Premian Partners.
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Determine the share price and EPS/P ratio for Premian Partners.
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Determine the value of the concatenator business given a very large grid of inputs including Asset value, Free cash flows, and growth rates.
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Determine the NPV for Better Mousetraps given a 5-years worth of sales forecasts and if the project is depreciated straight line. How much would the NPV of the project increase if the asset is depreciated using 5-year MACRS?
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Given information regarding the costs of purchasing or making lids for the widgets… determine which one they should do by finding the NPV for both methods.
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Given the information regarding the costs, production, and salvage value of a project… determine what the net present value of the project is.
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While referring to the excel spreadsheet file of Table 6.2 (big grid) and given the two different scenarios of a project… determine the NPV of both while determining if the project is attractive or not.
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Given the cost of an optical scanner, the benefits it provides per year, the expected life, the decrease in price per year, and the discount rate… determine whether or not you should buy the scanner now or wait. If not then when is the best time to buy it? What is the PV at the optimal time?
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Determine the annual rental payment you would have to charge at the end of the first year and how it would alter in the subsequent years.
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Calculate the equivalent annual cost of the copiers for Hayden Inc., and determine when Hayden should replace its copiers.
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Given information on seven different stocks… determine the portfolio variances for each if you were to have half BP stock and half another stock – then they ask which portfolio would be the safest combination with BP.
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