1. Hard Wood Homes Ltd. wants to build a brick factory on land it acquired 5 years ago at a cost of $200,000. The current fair value of the land is $500,000. HWH uses a discount rate of 10%. What is the relevant cost of the land for the factory NPV calculation?
2. What is the NPV of a project if the preseent value of all costs is $174,250, the present value of all cash inflows is 4,183,240.10, the present value of all tax shields is $15,343.23, and the net present value of all salvage values is $5,533.23?
3. Assume that PAP Inc. shares trade at the beginning of the year for $61 and the expected dividend is $9. If you expect the shares to trade for $68 at the end of the year, what is the expected return for PAP?
4. The common shares of TWG Inc. are expected to pay dividend of $1/share over the next year & to be trading for $9.50 in 1 year's time. What is the current market price of common share if market price of risk is 7%, risk-free rate of return -2% & beta 1.40
2007-11-08 01:11:15 · 2 answers · asked by Forever me 1 in Business & Finance ➔ Other - Business & Finance