Problem 8.01 – Payback period 4 Year Cash Flows
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Determine the payback period for 4 years worth of cash flows, including an initial investment at year 0.
Determine the payback period for 4 years worth of cash flows, including an initial investment at year 0.
Given a company’s recently paid dividend per share, a constant dividend growth rate, and the required return by investors, calculate the current price of the company’s stock. Determine the stock price in a few years and in many years from now.
Given a company’s next dividend payment per share, a constant dividend growth rate, and the current stock price, calculate the required return. Determine the dividend yield and the expected capital gains yield for the company.
How can the payback period of an investment project be calculated, given the cash inflows and the initial cost of the project, and how does the payback period change as the initial cost of the project varies?
Calculate the payback for projects A and B, both international investment projects, and determine which project, if any should be accepted by the company.
Determine the average accounting return given an installation cost and four years’ worth of projected net income.
Given a company’s dividend per share for the next year, a constant annual dividend growth rate, and the required return on investment, calculate the current price an investor should pay for the company’s stock.
Determine the required return on the stock of Caccamise Co., given the company’s constant dividend growth rate and dividend yield. Express your answer as a percentage rounded to two decimal places.
Given 3 years worth of cash flows, you are asked to determine the IRR of the project. Then, once given a required return in the second part of the problem, you are asked to determine whether the firm should accept or reject the project.
Given a company’s current stock price, required return, and a policy to maintain a constant growth rate in dividends, determine the current dividend per share when the total return on the stock is evenly divided between a capital gains yield and a dividend yield. Find the current dividend per share.