On a particular date, the information concerning Office Depo…

On a particular date, the information concerning Office Depot, Incorporated, was given on Google Finance: Market Cap = $1.89Bn, Shares = 275Mil, EPS = $0.74, P/E = 9.26. Its competitor, Staples Incorporated, had a stock price of $24.33. Which of the following is closest to the EPS of Staples Incorporated if it is estimated using valuation multiples based on price-earnings ratios?

Brutus Co. is deciding whether to sponsor a racing team for…

Brutus Co. is deciding whether to sponsor a racing team for a cost of $1 million. The sponsorship would last for three years and is expected to increase cash flows by $430,000 per year. If the discount rate is 6.9%, what will be the change in the value of the company if Brutus Co. chooses to go ahead with the sponsorship?

 Investment A: Year:                    0                  1…

 Investment A: Year:                    0                  1                2                3                4            5 Cash flow:          -$14,000     $7000        $8000        $6000        $6000    $6000   Investment B: Year:                    0                  1                2                3                4            5 Cash flow:          -$15,000     $7000        $7000        $7000        $7000    $7000   Investment C: Year:                    0                  1                2                3                4            5 Cash flow:          -$18,000     $12,000     $2000        $2000        $2000    $2000   The cash flows for three projects are shown above. The cost of capital is 9.5%. Even though we know the payback period is an unreliable investment decision rule, suppose an investor decides to take projects with a payback period two years or less. Which of these projects would he take?