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Open Door Corporation has $3 million in earnings on $20 million in sales and has 1 million shares outstanding. Earnings per share of comparable firm A is $5, and earnings per share of comparable firm B is $2. Comparable firm A’s stock is trading for $50, and comparable firm B’s stock is trading for $28. What is the estimated stock price of Open Door using the method of comparables?

AWSM has just paid a dividend of $1.24 and is expected to increase the future dividends at a rate of 3% per year indefinitely. If you, as a shareholder, require 12% per year, what is the current price per share?

A 15-year bond has a face value of $1,000, a coupon rate of 3.5%, and a yield to maturity of 8.5%. If the bond pays semiannual coupons, what is the bond’s price? 

If Jack and Jill deposit $1,000 into a savings account that earns 4.5% annual interest (compounded monthly), how long will it take for their money to double to $2,000?

Compute FINALS Inc.’s RRR given a beta of 1.2, a risk-free rate of 2.45%, and the average market return of 11%.

When typically is the best time to shop for a car? 

Which of the following in not a reason to buy a 15-year mortgage as opposed to a 30-year mortgage?

A firm has a machine it can sell for $15,000. The book value of the machine is currently $38,000. If the firm sells the machine, what are the tax implications of the sale? Assume that the tax rate is 40%.

Suppose you have estimated the free cash flows to equity holders over the next five years as follows: Year 1: $33.2 millionYear 2: $35.8 millionYear 3: $42.3 millionYear 4: $36.9 millionYear 5: $40.5 million You expect FCFE to remain constant at $38.6 million after year 5. If the company’s cost of equity is 13%, the WACC is 12%, the YTM is 10%, and the tax rate is 34%, then what is the value of the firm’s equity (in millions)?

Which of the following correctly states the balance sheet equation?