You will get the new net present value...|
(I am now in class) ...and it will give you S0+... and then you get yes... (UGBA 103 - Corporate Finance) ...the new projects discounted to time 1... now you see why G has to be less than R. If G is not less than R, this term will blow up (cool! I want to see that) Let's use what we know. We know that the net present value of the first project at time one... (boooooooring) and so I get r-g, right. R-G. That's correct. (The GSI is about to fall asleep standing) ... if the divident grows at the constant rate G, therefore ... (lost him again. notetaking sucks) ... so you have E1 by R ... plus ... minus ... R-G ... so E1 equal blah blah by R ... so this becomes E1R minus G (now he is so quiet, he may have died. he is just mumbling something to himself - just like all the dead GSIs do) ... let me do this later since I will distract the class. I did this yesterday. Twice. (Well, you suck even more than the notetaking. I should start working for Black Lighting - I take great notes. All of you have just recieved a free set of notes for the Corporate Finance Class.) ... The second project NPV is the first project plus ... (Or maybe I should open a competing company. Like the Grease Lightning. Oh wait, that would be very very stupid. Skipping on that.) *erases everything of the board while quietly talking to some loser in the first row* (Blah.... I have yesterday realized that I have Emma's phone number. So I called her to leave her a voice mail. She has the coolest message on the answering machine. I called her twice just to listen to it again. Actually I called more than twice, but I only connected twice. The other twice I talked to some silly machine that told me something in Swedish and hung up on me. I should call Emma more often.) *Lowered the screen, turned on his computer, about to go over the homework* ... assests are equal debt plus equity, the company has to debt... so its earnings per share is 1 dollar - it's just the number of shares outstanding divided by... Now the cap rate is given to you - the problem says that the market cap rate is 10% so... the return on equity, as you can see, is going to be earnings per share divided by ... (screw this. UCB just placed the latest Star Office onto Software.berkeley.edu - accessible to staff and faculty only. I am probably still officially staff. That's cool. Because I just managed to download it. So now I will go, install and learn Star office) ... you know, you can conduct your conversations outside. I don't care whether you come here or not. Now as you know... (stupid GSI. We should be having the break in around half an hour. Like hell I am coming back after the break. Ciao all! Hello Star Office! Screw Microsoft!)
Current Mood: nerdy
Current Music: ...if you take project one, your stock price goes up to...