Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are trying to determine if there has been any

You are trying to determine if there has been any creation of value for Apple...

60.1K

Verified Solution

Question

Finance

  1. You are trying to determine if there has been any creation of value for Apple Company.

    The company had a book value of $375.

    There is a constant discount rate of 8.75%.

    There is a one time net amount of cash returned to shareholders of $895.

    The time period is 8 years.

    Calculate the present value discount factor as 1/(1 + 8.75%)^8.

    What is the market value of the stock and the resulting market/book ratio?

    a.

    Market Value = $457.50; Market/Book Ratio = 1.22
    b.

    Market Value = $457.50; Market/Book Ratio = 1.55
    c.

    Market Value = $475.50; Market/Book Ratio = 2.12
    d.

    Market Value = $754.50; Market/Book Ratio = 1.22

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Identify each of the following statements as true of false and explain your reasoning in...

Advance Math
Q

Explain in your own words the difference between a scientific journal, a science magazine, and a...

Biology
Q

For this assignment, in each of the following five scenarios, indicate whether you consider the following...

Psychology
Q

An uncharged capacitor is fully charged with a battery The ratio of energy stored in...

Physics
Q

Fill in the blanks:1. If tan x = 0.5 then tan( ? x) =2. If...

Basic Math
Q

Solve the equation for the variable Write your solution as a simplified root If there...

Statistics
Q

image
image
image

Accounting
Q

Activities included in a generally accepted definition of the management process include: A. Planning, organizing,...

Accounting
Q

[The following information applies to the questions displayed below.] In December...

Accounting
Q

Koch's, GP sold equipment with a $132,900 adjusted tax basis (accumulated depreciation in the amount...

Accounting
Q

John bought 1,800 shares of Intel stock (Nasdaq: INTC) on October 18,2019, for $46 per...

Accounting
Q

A company is due to receive 2,500,000 two-months from today and wishes to save the...

Finance