MTT Corp Finance Assignment Help With Solution
1. ABC Corp. has just paid an annual dividend of $0.50 per share. Dividends are expected to grow at 15% for each of the next 8 years, at 10% for the 2 years after that, and at 3% thereafter. If the appropriate discount rate is 10%, what is the intrinsic value of the stock? Clue start with a stream of discounted dividends and price the stock.
The timeline for the dividends looks like this (split to fit on the page):
0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
8 | 9 | 10 | 11 | 12 |
| | | | | | | | | |
| | | | | | | | | |
0.5(1+g)8 | .. |
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features
Features for Assignment Help
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Related Services
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Best Assignment Help
- Humanities Assignment help
2. You are a research analyst for a major investment bank and have been asked to evaluate three candidates for a takeover and recommend one. You estimate the risk-free rate to be 5% and the market risk premium to be 8%. You also have the following data:
MTT Corp. NOR Corp. TECH Corp.
current price $20 $25 $200
number shares 100,000 80,000 10,000
current EPS $4 $2.50 $5
payout ratio 50% 20% 10%
(first 5 yrs)
beta 1.0 1.25 1.5
growth rate:
first 5 yrs. 5% 20% 50%
beyond 5 yrs. 5% 10% 10%
D/E ratio 0 0 0
ROA:
first 5 yrs. 10% 25% 55.56%
beyond 5 yrs. 10% 20% 25%
Which firm is the best candidate for a takeover? Clue calculate intrinsic value and overvaluation/undervaluation using relevant metrics like Gordon Shapiro model, constant dividend growth model etc.
3. It is now time 0. You are a bond portfolio manager using a barbell strategy to immunize. Your portfolio will consist of two bonds: bond A, which is a $100 par zero coupon bond maturing in five years; bond B, which is a $100 par zero-coupon bond maturing in ten years. You are trying to immunize a $1 million liability that is due in six years. The yield curve is flat at 10%, so you need a present value of $1 million/(1.10)6 = $564,474.
a.Of the $564,474, how much will you put in bond A and how much will you put in bond B? How many of the A and B bonds will you buy?
&nbsb;
b.One minute after you set up the portfolio, the yield curve shifts up to 15% (staying flat). How much is your portfolio worth?
c.After the shift in part b, is your liability immunized? If not, what should you do to immunize it? Be specific, and give numbers if you can.
d.Now assume that the shift in part b never happened. You leave the firm and nobody bothers to look at the portfolio again until the end of year 4. Interest rates are still at 10%; there have been no further changes. At the end of year 4, a new bond portfolio manager takes over, goes through the files, and finds the records of the portfolio. What, if anything, will she have to do to keep the liability immunized? Be specific, and give numbers if you can.
4. Consider the following data for a stock and a call option on that stock: S0 = $50, S1 = $75 or $100, E = $50, and r = 1.10. Derive the hedge ratio (α) and the price of the call option
Product Code :Fin152
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.