Question: 27. Marie's Fashions is considering a project that will require $39,000 in net working capital and $68,000 in fixed asses. The project is expected to

 27. Marie's Fashions is considering a project that will require $39,000
in net working capital and $68,000 in fixed asses. The project is
expected to produce annual sales of $73,000 with associated cash costs of

27. Marie's Fashions is considering a project that will require $39,000 in net working capital and $68,000 in fixed asses. The project is expected to produce annual sales of $73,000 with associated cash costs of $42,500. The project has a four-year life. The company uses straight-line depreciation to a zero book value over the life of the project. Ignore bonus depreciation. The tax rate is 25 percent. What is te operating cash flow for this project? (2 Points) $26,375 527.580 530,325 525.760 527.125 34. The market has an expected rate of return of 12.6 percent. The long-term government bond is expected to yield 4.8 percent and the U.S. Treasury bill is expected to yield 2.9 percent. The inflation rate is 3.2 percent. What is the market risk premium? (2 points) 8.8 percent 9.7 percent 9.9 percent 9.3 percent 6.9 sercent 35. Chelsea Fashions is expected to pay an annual dividend of $1.75 a share next year. The market price of the stock is $24.09 and the growth rate is 2.6 percent What is the cost of equity? (2 points) 7.98 percent 9.85 percent 9.55 percent 745 percent 738 percent

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