Homework Helper

Not Rated (0)

$17/per page/

About Homework Helper

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Art & Design,Chemistry,Economics,Essay writing Hide all
Teaching Since: Apr 2017
Last Sign in: 419 Weeks Ago, 3 Days Ago
Questions Answered: 3232
Tutorials Posted: 3232

Education

  • MBA,MCS,M.phil
    Devry University
    Jan-2008 - Jan-2011

  • MBA,MCS,M.Phil
    Devry University
    Feb-2000 - Jan-2004

Experience

  • Regional Manager
    Abercrombie & Fitch.
    Mar-2005 - Nov-2010

  • Regional Manager
    Abercrombie & Fitch.
    Jan-2005 - Jan-2008

Category > Business & Finance Posted 31 May 2017 My Price 8.00

California Real Estate, Inc., expects to earn $71.7

California Real Estate, Inc., expects to earn $71.7 million per year in perpetuity if it does not undertake any new projects. The firm has an opportunity to invest $16.7 million today and $5.7 million in one year in real estate. The new investment will generate annual earnings of $11.7 million in perpetuity, beginning two years from today. The firm has 15.7 million shares of common stock outstanding, and the required rate of return on the stock is 16 percent. Land investments are not depreciable. Ignore taxes.

  

a.

What is the price of a share of stock if the firm does not undertake the new investment? (Do not round intermediate calculation and round your final answer to 2 decimal places. (e.g., 32.16))
b. What is the value of the investment? (Enter your answer in dollars, not millions of dollars.Do not round intermediate calculation and round your final answer to 2 decimal places. (e.g., 32.16))
c.

What is the per-share stock price if the firm undertakes the investment? (Do not round intermediate calculation and round your final answer to 2 decimal places. (e.g., 32.16))

  

Answers

Homework Helper
Not Rated (0)
Status NEW Posted 31 May 2017 04:05 AM My Price 8.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)