Questions from Corporate Finance

Q: In addition to footwear, Kenneth Cole Productions designs and sells handbags

In addition to footwear, Kenneth Cole Productions designs and sells handbags, apparel, and other accessories. You decide, therefore, to consider comparable for KCP outside the footwear industry. a. Su...

Q: Consider the following data for the airline industry for December 2015 (

Consider the following data for the airline industry for December 2015 (EV = enterprise value, Book = equity book value). Discuss the potential challenges of using multiples to value an airline.

Q: Suppose Hawaiian Airlines (HA) has 53 million shares outstanding.

Suppose Hawaiian Airlines (HA) has 53 million shares outstanding. Estimate Hawaiian’s share value using each of the five valuation multiples in Problem 28, based on the median valuation multiple of th...

Q: See Table 2.5 showing financial statement data and stock price

See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. In what year was Mydeco’s net income the lowest? b. In what year did Mydeco need to reduce its...

Q: In mid-2015, Coca-Cola Company (KO)

In mid-2015, Coca-Cola Company (KO) had a share price of $41, and had paid a dividend of $1.32 for the prior year. Suppose you expect Coca-Cola to raise this dividend by approximately 7% per year in p...

Q: Krell Industries has a share price of $22 today. If

Krell Industries has a share price of $22 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell’s di...

Q: No Growth Corporation currently pays a dividend of $2 per year

No Growth Corporation currently pays a dividend of $2 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year?

Q: Dorpac Corporation has a dividend yield of 1.5%. Dorpac’s

Dorpac Corporation has a dividend yield of 1.5%. Dorpac’s equity cost of capital is 8%, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of Dorpac’s divid...

Q: Canadian-based mining company El Dorado Gold (EGO) suspended

Canadian-based mining company El Dorado Gold (EGO) suspended its dividend in March 2016 as a result of declining gold prices and delays in obtaining permits for its mines in Greece. Suppose you expect...

Q: In 2006 and 2007, Kenneth Cole Productions (KCP) paid

In 2006 and 2007, Kenneth Cole Productions (KCP) paid annual dividends of $0.72. In 2008, KCP paid an annual dividend of $0.36, and then paid no further dividends through 2012. KCP was acquired at the...