16 1/12 hours. To make it easier add up all the whole numbers first then find the common denominator, which is 12. Turn all the fractions into fractions with the denominator of 12 add those up and you shall get 16 1/12.

5 0

3 years ago

The XYZ Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $18.00,

stellarik [79]

Answer:

current intrinsic value per stock = $26.35

Explanation:

year dividend EPS

0 0 $18

1 0 $20.88

2 0 $24.22

3 0 $28.10

4 0 $32.59

5 0 $37.81

6 $12.59 $41.97

growth rate up to year 5 = 16%

ROE growth rate starting year 6 = 11%

dividend growth rate starting year 6 = 11% x (1 - 30%) = 7.7%

cost of equity = 24%

horizon value at year 5 = $12.59 / (24% - 7.7%) = $77.24

current intrinsic value per stock = $77.24 / 1.24%⁵ = $26.35

4 0

2 years ago

Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 12years Yearl

Vlada [557]

Answer:

$339,600

Explanation:

The internal rate of return is the relationship between the price of the equipment and their yearly cash flow. the IRR makes the net present value equal to zero thus, it makes the present value of the yearly cashflow equal to the cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 60,000.00

time 12

rate 0.14

$60000 \times \frac{1-(1+0.14)^{-12} }{0.14} = PV\\$

PV $339,617.5275

From the given option:

$ 339,600 is the closest option.

7 0

3 years ago