##### Easy questions

 Business & Finance Tutor: None Selected Time limit: 1 Day

1. Based on the corporate valuation model, Wang Inc.’s value of operations is \$550 million.  Its balance sheet shows \$100 million notes payable, \$200 million of long-term debt, \$40 million of common stock (par plus paid-in-capital), and \$160 million of retained earnings.  What is the best estimate for the firm’s value of equity, in millions?

Jul 21st, 2015

Value of equity = Value of operations + short term investments - long term debt - notes payable

= \$550 + \$0- \$200 - \$100

= \$250 million

Jul 21st, 2015

Could you do two more easy questions for me? You are helpful

Jul 21st, 2015

Tell me but please increase amount

Jul 21st, 2015

You mean I post it to paid question?

Jul 21st, 2015

Jul 21st, 2015

1. Porter Inc's stock has an expected return of 10.75%, a beta of 1.25, and is in equilibrium.  If the risk-free rate is 5.00%, what is the market risk premium?

2. Whited Inc.'s stock currently sells for \$35.25 per share.  The dividend is projected to increase at a constant rate of 4.50% per year.  The required rate of return on the stock, r, is 11.50%.  What is the stock's expected price 5 years from now?

Jul 21st, 2015

Can you pay me \$5 for each question

Jul 21st, 2015

LOL, it's too expensive. Maybe I can do it myself. Thanks

Jul 21st, 2015

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Jul 21st, 2015
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Jul 21st, 2015
May 30th, 2017
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