Managerial finance

 

Quest Financial services balance sheets report $200 million in total debt, $100 million in short-term investments, and $30 million in preferred stock. Quest has 10 million shares of common stock outstanding. A financial analyst estimated that Quest’s value of operations is $1000 million. What is the analyst’s estimate of the intrinsic stock price per share?

Question 2

Lincoln Incorporated is expected to pay a $4.5 per share dividend at the end of this year (i.e., D1 = $4.50). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock is, rs, is 12%. What is the estimated value per share of Boehm stock?

Question 3

Assume that the average firm in Masters Corporation’s industry is expected to grow at a constant rate of 3% and that its dividend yield is 5%. Masters is about as risky as the average firm in the industry and just paid a dividend (D0) of $2.5. Analysts expect that the growth rate of dividends will be 25% during the first year (g0,1 = 25%) and 10% during the second year (g1,2 = 10%). After Year 2, dividend growth will be constant at 5%. What is the required rate of return on Masters’s stock? What is the estimated intrinsic per share?

 

Sample Solution

is the ‘iconic’ genre for African Americans, a marginalised group. American hip-hop deals with issues of oppression, poverty, and rebellion. For much of the world, hip-hop and ideas of fighting oppression have an indexical link. Tunisian hip-hop have been especially important in calling out oppression in Tunisia because of the indexical clusters that are associated with hop-hop and fighting subjugation. Certain hip-hop artists like El General have become iconic of the Arab spring, as he played a huge role in the movement and so he became one of the symbols of the Middle East rebellions.

Throughout the Middle East music was used a defence to fight against the government as activist groups sang political chants over familiar popular tunes to create a semantic snowballing effect that gave the original song meaning. Continuous repetition of determined revolutionary activities in a mundane life, results in the internalisation of revolutionary ideas within the general population, without the governments attention. Building musical communities involves the role of semiotic effects as shared sense of community is built through the repetition of certain musical practices and people begin to associate music with the community that they are a part of which becomes part of their identity. However, communities can also surpass boundaries of identity and what holds these communities together is their shared experience of music, which often leads to the acknowledgement of shared experience or political alienation. This creates the emergence of new group political identities.

El General’s rap broke the spell of fear and showed other artists that it was possible to rebel and survive as he was released three days after his arrest due to public uproar. On January 25, 2011 the protests spread to Egypt and music played its part in the firing line. In Egypt, on Tahir Square in Cairo, loudspeakers carried the voice of 26-year-old singer Ramy Essam to the thousands of protesters who gathered there. Before 2011, Ramy Essam was not a household name in Egypt, he was a simple student and an impressive writer with a guitar and an impactful message. He began sin

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