S
  1. study help
  2. subject categories
  3. business
  4. finance
  5. september 2017
  6. 28

Finance Questions and Answers September 28, 2017

Expert-verified solutions to help you succeed

Your client turned 25 years old today and wants to start saving fore retirement. Starting today and continuing at the beginning of every month they plan to contribute $150 to their IRA and will continue to do this until they retire. They will invest their entire portfolio in the S&P 500 and expect to earn an annual return of 8.25%. If they retire

I have decided to start a college savings account for my new baby. I plan to be very diligent and to save $5000 per year in this account. If I'm able to be consistent for 18 years and if my average rate of return over that time is 5%, how much will I have saved for her college ?

Please go into detail when answering this question. (Percentage of salesplant and equipment) A com- pany had sales last year of $30,000,000 and forecasts sales of $40,000,000 in the coming year. It ended the year with $12,000,000 of plant and equipment. Fore- cast the end-of-coming-year balance for plant and equipment under each of the following
image text in transcribed

Can you please show me step by step how to solve this problem!! Given Required ROR (k)-Rr+Risk Premiumxp or 35. If this company paid annual dividend of $8/share at the latest year-end, and the dividend is expected to grow at 7% for the foreseeable future, what is the rational price of this firm's stock? If the stock currently trades at $80, is
image text in transcribedimage text in transcribed

Homework: Lab 10 Question 5, Problem 16-8 (algorithmic) Part 1 of 10 > HW Score: 27.69%, 2.77 of 10 points Points: 0 of 1 Save Sunny Coast Enterprises (B). Sunny Coast Enterprises has sold a combination of films and DVDs to Hong Kong Media Incorporated for US$109,000, with payment due in seven months. Sunny Coast Enterprises has the following
image text in transcribed

Rogot Instruments makes fine violins and cellos. It has $1.1 million in debt outstanding, equity valued at $3.7 million, and pays corporate income tax at rate 25%. Its cost of equity is 14% and its cost of debt is 6%. a. What is Rogot's pre-tax WACC? b. What is Rogot's (effective after-tax) WACC
image text in transcribed

You are choosing between two projects. The cash flows for the projects are given in the following table (S million): Year 0 -$49 - $102 Year 1 $26 $22 Year 2 $19 $39 Year 3 $18 $51 Year 4 $17 $59 Project a. What are the IRRs of the two projects? b. If your discount rate is 5.4%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the
image text in transcribed

(25 pts) A project has a NPV, assuming a11 equity financing, of $1.5 mi11ion. To finance the project, debt is issued with associated flotation costs of $60,000. The flotation costs can be amortized over the project's 5 year 1 ife. The debt of $10 mi11ion (assume inclusive of flotation costs) is issued at 10% interest, with principa1 repaid in a 1
image text in transcribed

Present value of multiple cash flows CT PV = C1 1+r C2 (1+r)2 + (1+r)7= { Present value of perpetuity PV =- r Present value of growing perpetuity PV C where g
image text in transcribedimage text in transcribed

CCR stock is currently trading for $105.68 per share. The firm is expected to pay a dividend of $10.98 per share in one year and to increase the dividend at 4.8% each year thereafter. Based on the Dividend Growth Model, what the the annual required rate of return for CCR stock? Answer as a % to 2 decimal places (e.g., 12.34% as 12.34)
image text in transcribed

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.3 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years for $530,000. The firm believes that working capital at each date must be maintained at a level of

Modeling project This project is meant to give you experience with the analysis we have been practicing in class. You will make recommendations to the business owner using incremental analysis and multiproduct profitability analysis. Businesses must continually analyze and adapt to changes in the market and the corresponding effects on their

Operating exposure. Copy-Cat, Inc. has signed a deal to make vintage Nissan 240-Z sports cars for the next three years. The company will build the cars in Japan and ship them to the United States for sale. The current indirect rate is Y112.2935 per dollar. The anticipated inflation rate for parts and labor in Japan is 2.1% over the next three
image text in transcribed

Bruin Industries Just Issued $390,000 of perpetual 6.9 percent debt and used the proceeds to repurchase stock. The company expects to generate $185,000 of earnings before interest and taxes in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm's unlevered cost of capital is 11.9 percent and the
image text in transcribed

You purchase 100 shares of MSFT one month ago for $254 per share. Today MSFT is trading at $247 per share. You believe MSFT is a sound company and a good stock, and you would like to maintain your long position unless the stock begins to plummet in value. You want to sell if MSFT drops below $230 per share. What should you do? place a market arder
image text in transcribedimage text in transcribed

This stock problem will consist of four parts. Part One: IBM stock will pay a $12 per share annual dividend in perpituity. If investors require a 12% rate of return, what should be the price of this stock today? Part Two: If IBM is expected to pay a $12 dividend next period and dividends are expected to grow at 5 percent annually, what should be
image text in transcribed

In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The rate of return on Apex was rA = 3.5%. The rate of return on Bpex was only rB = 2.9%. The market today responded to very encouraging news about the unemployment rate, and rM = 3.2%. The historical relationship between

Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr. Golff has developed the following estimates of the cash flows for these properties. Palmer Heights Yearly Aftertax Cash Inflow

model to select the best projects within the budget. Click the icon to view the project expected return (NPV), resources, and cost data. Which combination of projects maximizes NPV within the budget? Select all that apply. A. 4 B. 1 C. 6 R\&D Project Data model to select the best projects within the budget. Click the icon to view the project
image text in transcribed

Needed done on excel Module 6: [4 marks] Larry and Janice have retained an accountant to better understand their cash position in their projected first year of operations. The accountant has reviewed their latest projections for this year and since they were planning to go ahead with their business, he/she was keen to help them prepare a cash
image text in transcribed

A bank has Federal Funds totaling $25 million with an interest-rate sensitivity weight of 1.0. This bank also has loans of $105 million and investments of $65 million with interest rate sensitivity weights of 1.40 and 1.15 respectively. It also has $153 million in interest-bearing deposits with an interest rate sensitivity weight of 0.90 and other

You own a car dealership and are trying to decide how to configure the showroom floor. The floor has 2000 square feet of usable space. You have hired an analyst and asked her to estimate the NPV of putting a particular model on the floor and how much space each model requires: Model NPV Space Requirement (sq. ft.) MB345 $2,500 200 MC237 $4,000 250

(Round to the nearest cent) Assume that your parents wanted to have $150,000 saved for college by your 18 th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 9.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they
image text in transcribed

Moving to another question will save this response Question 13 of 25 Question 13 10 points Save Anwe 1. Helmuth Ine's latest net income was $1,250,000, and it had 225,000 shares outstanding. The company wants to pay cut 49% of its income. What dividend per share should it declare? 1 5238 $250 52.14 52 26
image text in transcribed

Langer plc, a UK firm, is worried about a fall in the Australian dollar by 5 per cent, compared to the present A$1.75 per 1, that might inflict translation losses regarding its a$100 million assets located in Adelaide. Why should it not worry?

Your friends and you decide to purchase a large tract of forest land in northern Minnesota with the intent of generating income from timber and leasing the hunting rights. Your estimated costs and returns are as follows: $1400/acre purchase price of land, paid back in equal yearly installments over 15 years @ 7% annual interest. $200/acre site

a) You expect to receive GHd30,000 at your graduation in two years. You plan to invest it until you have GH16,000,000. If similar investments require 9% p.a, how long will you wait from now?

If other things remain the same, the lower the debt ratio, the lower the equity multiplier. O True O False
image text in transcribed

L S&P 500 Reported Bull-Bear Weekly Change in Spread Return to S&P 500 Date Bullish Neutral Bearish Spread Close 7-24-87 36.0% 50.0% 14.0% 22.0% 309.27 7-31-87 26.0% 48.0% 26.0% 0.0% 318.66 8-7-87 56.0% 15.0% 29.0% 27.0% 323.00 8-14-87 45.0% 35.0% 20.0% 25.0% 333.99 8-21-87 66.0% 28.0% 6.0% 60.0% 335.90 a. Calculate weekly returns to the S&P 500
image text in transcribed

please answer all three blanks. (7.3) The debt represented by T-bills is virtually free of any life. We will call the rate of return on such debt the a kind of benchmark. The difference between the rate of return for a risky investment and the return on T-bills is the over its short , and we will use it as for the risky asset
image text in transcribed

You have just been hired as a loan officer at Fairfield State Bank. Your supervisor has given you a file containing a request from Hedrick Company, a manufacturer of auto components, for a $1,000,000 five-year loan. Financial statement data on the company for the last two years are given below: Hedrick Company Comparative Balance Sheet This Year

Bruce is a surgeon who lives in Seattle. He lives with Elena, his 16 year-old daughter; Liam, his nine year-old son; and Barney, his golden retriever dog. Bruce purchased an unendorsed ISO Homeowners 3 policy, the policy we covered in class. A number of events have occurred since Bruce purchased the policy. Would the following claims / losses be

PLEASE(show the steps and equations!(not just factor form)) (don't write using excel) Question 2.6 (10pts) The average starting salary for engineers was $14,000 a year in 1990 . Dni, an electrical engineer, got an offer for $90,000 a year in 2021. Knowing that the CPIs for 1990 and 2021 are 52 and 247 , respectively, what is David's percentage
image text in transcribed

In 2021, the BowWow Company purchased 18,700 units from its supplier at a cost of $12.00 per unit. BowWow sold 19,640 units of its product in 2021 at a price of $24.00 per unit. BowWow began 2021 with $974,220 in inventory (inventory is carried at a cost of $12.00 per unit). Using this information, compute BowWow's gross profit for 2021. Record
image text in transcribed

Suppose Gilberto receives a $28,000.00 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 4% compounded annually. Use the formula for the present value of an ordinary annuity to find this payment amount: PVANPMT=PMTI(1(1+I)N1)=PVAN(1(1+I)N1)I In this case, PVAN equals ,I equals, , and N equals
image text in transcribedimage text in transcribed

The following returns of stock (Tango) are from 2000 to 2007 namely: 8.0%, 9.0%, 10.50%, -5.0% (negative), 6.0%. -6.0% (negative), 15.0%, and 10.0%. Find the Geometric average for stock (Tango)? 0.0565 0.0694 0.0569 0.0596
image text in transcribed

Save HW Score: 30%, 6 of 20 points Homework: Homework 5 Question 12, P 11-1 (similar to O Points: 0 of 1 You bought a stock one year ago for $50.51 per share and sold it today for $59.78 per share. I paid a $1.31 per share dividend today. What was your realized retum? The roatzod retum was I (Round to one decimal place) Help me solve this View an
image text in transcribed

Two projects are being considered for implementation at an MARR of 6%. Both have equal other costs and benefits, and the decision needs to be made based on the initial costs only. The first project has a perpetual life, and the second project has life as shown. Which project should be selected? Project C Project D Initial cost ($140,000,000)

Production function is given by Y = 45K(AN)l-a, where a=1/3. The rate of depreciation of capital is equal to 10 percent, and the rate of population grow saving rate at time t was equal to 12 percent and the level of technology At was equal to 5. The economy was in the steady state at time t and the rate of growth equal to 5 percent. Use the Solow
image text in transcribed

Thomson Trucking has $12 billion in assets, and its tax rate is 25%. Its basic earning power (BEP) ratio is 15%, and its return on assets (ROA) is 4.25%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

please answer asap thank you The Enrique Company recorded the following transactions for February 20x1: Sales were $572,000, with sales prices determined by adding a 30% markup to the firm's manufacturing cost. The total cost of direct materials used, direct labor, and manufacturing overhead during the month was $301,000. Note: The materials
image text in transcribed

If the corporate tax rate is 25 percent, what is the aftertax cost of the company's debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
image text in transcribed

10-5 The Rabbit Co. is considering three independent projects: Project O, Project P, and Project R. Project O has an initial cash outlay of $600,000 and expected cash flows of $100,000 at the end of each year for 10 years. Project P has an initial cash outlay of $700,000 and expected cash flows of $100,000 at the end of each year for 15 years.

Sergio and Deandre plan to purchase a home for $371,000. They will pay 20% down and finance the remainder for 30 years at the APR of 6.7%, compounded monthly. a) How large are the monthly payments? b) What will be their loan balance right after they have made their 108th payment? c) How much interest will they pay during the 9th year of the loan?

Score: 0 of 1 pt 3 of 8 (8 complete P 3-22 (similar to) Calculate the future value of $2,000 in a. Four years at an interest rate of 6% per year. b. Eight years at an interest rate of 6% per year. c. Four years at an interest rate of 12% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in
image text in transcribed

Question 16 What is the net present value of a project with the following cash flows and a required return of 13 percent? Year Cash Flow -556,300 17,700 30,530 4,450 -513,241.81 -$13.642.74 $13,642.74 -$16,393.39 513,241.81
image text in transcribed

a) Explain how the Breon Woods System worked and how it differed from the Gold Standard. b) Explain how it collapsed

1- Consider a project of the Pearson Company. The timing and size of the incremental after- tax cash flows for an all-equity firm are $-1000, $305, $610, $555, $500 from year 0 to 4 respectively. The unlevered cost of equity is 38%. a. Calculate the NPV? Should this project be accepted? b. The firm finances the project with $24000 debt at 11% with
image text in transcribed

Finance Metrics Assume monthly payment (end of month) in all cases. Fill in the yellow cells using the other information to compute the missing value(s). Present Value Monthly $2,500.00 Problem # 1 2 3 Discount Rate (Annual %age) 7.50% 4.00% Duration (Years) 30 15 10 ($125,000.00) ($87,650.00) ($800,000.00) ($93,500.00) Future Value $0.00
image text in transcribed

Royal Furniture bought a sofa for $920. The sofa had a $1,520 list price. What was the trade discount rate Royal received? (Round your answer to the nearest hundredth percent.) Trade discount rate %
image text in transcribed

In 1895 , the first U.S. Open Golf Championship was held. The winner's prize money was $240. In 2019, the winner's check was $1,440,000. a. What was the percentage increase per year in the winner's check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the
image text in transcribed

Assignment - Case 13-4 - Ethical Decision Making At During its deliberations on the Sarbanes-Oxley Act, the U.S. Senate considered numerous reports evaluating the quality of work done by external auditors. One study by Weiss Ratings, Inc, focused on auditors' ability to predict bankruptcy. The study criticized auditors for failing to identify and
image text in transcribed

A mutual fund is made up of Many stocks 10 stocks 100 stocks 500 stocks None of these

(14 points) A loan of $10,000 is issued at 15% interest. Interest on the 1 oan is to be repaid annua11y for 5 years, and the non-amortized principa1 is due at the end of the fifth year. Calculate the NPV of the loan if the company's tax rate is 34% and the interest payments are fu11y deductib1e. (Reca11: write down a11 the formu1as and numerica1
image text in transcribed

Calculate a one-year holding period return (HPR) for the following two investment alternatives: Which investment would you prefer, assuming they are of equal risk? Explain. The HPR for investment X is 35.12%. (Enter as a percentage and round to two decimal places.) The HPR for investment Y is 21.77%. (Enter as a percentage and round to two decimal
image text in transcribed

(DuPont analysis)Dearborn Supplies has total sales of $209 million, assets of $ 93 million, a return on equity of 25 percent, and a net profit margin of 7.8 percent. What is the firm's debt ratio?

An Indian company imported goods from US. The US manufacturer invoices the shipment in Dollar (USD), and the amount is USD 5 million. The importer needs to pay the amount by 30 October 2023. The data regarding the futures contract as on 10 October 2023 is: Interbank Spot Market USD-INR 80.2725 - 80.2775 NSE futures: USD INR 281023 80.3175- 80.3250

#10 Revtek, Inc., has an equity cost of capital of 11.7% and a debt cost of capital of 6.4%. Revtek maintains a constant debt-equity ratio of 0.5 , and it's tax rate is 25%. a. What is Revtek's WACC given its current debt-equity ratio? b. Assuming no personal taxes, how will Revtek's WACC change if it increases its debt-equity ratio to 2.0 and its
image text in transcribedimage text in transcribed

Mortgage Affordability. Paul will be able to save $255 per month (which can be used for mortgage payments) for the indefinite future. If Paul finances the remaining cost of a $84.000 home, after malding a $16,800 down payment, (amount to finance $87,200) at a rate of 5% over 30 years, what are his resulting monthly mortgage payments? Can he afford
image text in transcribed

What is the price of an American call option that is expected to pay a dividend of $2 in three months with the following parameters? = s0 = $40 d = $2 in 3 months k = $43 r = 10% sigma = 20% T = 0.5 years - (required precision 0.01 +/- 0.01) You Answered Correct Answer 1.08 margin of error +/- 0.01 What is the price of an American call option that
image text in transcribed

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2016, a sculpture was sold at auction for a price of $10,315,500. Unfortunately for the previous owner, he had purchased it in 2012 at a price of $12,370,500. What was his annual rate of return on this sculpture? 4.00% 5.02% 3.77% 4.44%
image text in transcribedimage text in transcribed

Please Provide Excel Instructions 1. Assume the following information: Expected market return = 15.23%, market standard deviation = 11.31%, portfolio standard deviation = 8.5%, and the risk-free rate = 4.62%. a. Calculate the expected portfolio return using the Capital Market Line equation. b. Calculate the Sharpe ratio What is the slope of the
image text in transcribed

A company has net income of $198.000, a profit margin of 9.60 percent, and an accounts receivable balance of $106,503. Assuming 79 percent of sales are on credit, what is the company's days' sales in receivables? Multiple Choice O 18.85 days O 33.46 days O 23.86 days 5.01 days 25 05 days Pop Evil, Inc.'s, net income for the most recent year was
image text in transcribedimage text in transcribed

2. Classify the following cash flows as Operational (O), Financial (F) or Investment (1) (5 points) Dividends paid F Income Tax paid Repayment of Bonds Change in Inventories Disposal of subsidiaries Change in loans and other deposits Proceeds from issuing bonds Impairment losses on equity investments Depreciation of and impairment losses on lease
image text in transcribed

Hiii, please include detailed solutions with explanations :) Thank you!!! You work for a small investment management firm. You have been provided with the following historical information for three stocks and the market index. The information is shown in the table below. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 AAA Inc. Stock Dividend
image text in transcribed

If a company's inventories rise by $15 million, account payable (A/P) rises by $20 million, account receivable (A/R) decreases by $30 million, then what is the change in the net working capital ( NWC)?

Your financial expert advises that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f) continuously? (Note: Report your answers accurate to

In year 1, AMC will earn $1,700 before interest and taxes. The market expects these earnings to grow at a rate of 2.8% per year. The firm will make no net investments (i.e., capital expenditures will equal depreciation) or changes to net working capital. Assume that the corporate tax rate equals 40%. Rightnow, the firm has $4,250 in risk-free

Please Solve the following question wit full answer and explanation A gambling company is considering buying a new machine that costs 100,000. The machine requires 12,000 per year working capital from year 0 to year 4, and zero in year 5. The machine has 5 years of useful life, after that, it can be sold for a proceed of 8,000. The machine
image text in transcribed

Which of the following states has been considered the most attractive for incorporation? Question 37 options: Delaware New York Iowa California A basic principle of corporation law is that: Question 38 options: there is an established market for the stock shareholders are not free to dispose of their shares by gift. shareholders are given the

Your expectations from a one year investment in Wang Computers are as follows: Probability Rate of Return .15 -.10 .15 -.20 .35 .00 .25 .15 .10 .15 2 (a) What is the expected return from this investment? 2 (b) What is the standard deviation of return from this investment? 2 (c) What is the coefficient of variation of this investment? make the

A corporate bond has a coupon rate of 7%, a face value of $100 and a maturity of 5 years. Assume that coupon payments are made semi-annually, and investors require a 6% return. Group of answer choices The value of the bond is $97.86. There is only one face value of $100 paid in 5 years. Each coupon payment is $3 every six months for five years.

The relationship between the market rate of return and the intrinsic value is: a. No relation b. Positive c. Cant decide d. Negative

Why are networks and industry relationships important to TWC? What other strategies could an eco-tourism business of this size use to source ideas and incorporate into its new product development strategy? Tasmanian Walking Company: Balancing luxury and adventure in a sustainable experience Gemma Lewis, PhD University of Tasmania, Australia the
image text in transcribedimage text in transcribedimage text in transcribed

b) Hawk plc has the following projects in which it can invest: Project NPV at t=0, m Cash outflow at t=0, m 10 13 3.8 5.0 4.8 Present value at t=0 of cash inflows, m 19 38 A B C D E 7.3 9 25 3.5 4.9 2.3 9.9 7.1 Hawk has no other investment opportunities. Projects C and D are mutually exclusive. The capital investment budget at t=0 is limited to 25
image text in transcribed

Net present value Using a cost of capital of 13%, calculate the not present value for the project shown in the following table and indicate whether it is acceptable. 13 The net present value (NPV) of the project is (Round to the nearest cont.) Data Table (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table
image text in transcribedimage text in transcribed

When managers' compensation plans are tied in a meaningful manner to the profits of the firm, agency problems: None of these are correct ( B ) are shifted to other stakeholders. will be created. are eliminated entirely from the firm. can be reduced.
image text in transcribed

Complete the assets part of the balance sheet below: (Select from the drop-down menus and round to the nearest dollar.) Data table a. How much is the firm's net working capital? The firm's net working capital is $ (Round to the nearest dollar.) b. Complete an income statement and a balance sheet for Belmond. Complete the income statement below:
image text in transcribedimage text in transcribedimage text in transcribed

An accounting question covered in my finance class.... Problem - Tax Rates Data for Sabanci Holding is represented in the table below. The income statement items correspond to revenues or costs during the year ending in either 2018 or 2019. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items
image text in transcribed

Aspis Securities, Inc. provides financial analysis and information about publicly traded securities. You work as an analyst for Aspis. The firm's owner, George Stein, is preparing to make a presentation to the firm's clients and has asked you to provide some input regarding the bonds of KLX, a publically traded company. To simplify calculations,
image text in transcribed

Youve observed the following returns on Pine Computers stock over the past five years: 27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. The average inflation rate over this period was 3.33 percent and the average T-bill rate over the period was 4.3 percent. What was the average real return on the stock? Note: Do not round

PLEASE DO ALL THE PARTS PLEASE I REQUEST YOU PLEASE Leland Industries is a producer of bakery and snack goods in Western Canada and are considering expending into Eastern Canada. The expansion is estimated to cost $10,000,000 for a new production facility. This project is in the same line of business as the firm's current operations and is
image text in transcribedimage text in transcribed

If a company has a current ratio of 1.3, a quick ratio of 0.7, and current assets of $450,000, what is the investment in inventory? Round to the nearest cent.

Question 1 5 pts The goal of fundamental analysts is to find securities with a positive present value of growth opportunities. with high market capitalisation rates. None of the listed choices is correct. All of the listed choices are correct. whose intrinsic value exceeds market price. Question 2 5 pts An investment in a stock is the current
image text in transcribedimage text in transcribedimage text in transcribed

Question text If the yield curve is upward sloping, which of the following statements is correct? (hint: graph the yield curves for a T-bond, a AAA bond, and a B bond) Select one: a. The yield on the 5-year T-bond must exceed the yield on the 5-year AAA corporate bond. b. The yield on the 5-year AAA corporate bond must exceed the yield on 5-year B

4. An investment of $800,000 was made for a new process which is expected to generate an annual revenue of $350,000 with annual expenses of $100,000 for 7 years before being replaced. The equipment has a MACRS-GDS of 5 years and the MARR is 15% and the data is in Table 13.6. You may want to add additional columns to determine the answers. (a)
image text in transcribedimage text in transcribed

D8=5 Question 3 [Total 34 marks] A British electrical appliances distribution company purchased an American electrical appliances store chain for (75 + D8) million 3 years ago. There was a net loss of (10 + D8) million at the end of Year 1 of ownership. Net cash flow is increasing with an arithmetic gradient of +(5 + D8) million per year starting
image text in transcribed

QUESTION 2 For this firm, what is the optimal debt ratio to maintain? (Enter in % units) Click Save and Submit to save and submit. Click Save All Answers to save all answers A company has the following information: 8.25% Debt ratio Cost of debt Cost of equity 10% 6.00% 8.20% 20% 6.25% 30% 6.30% 8.75% 40% 7.00% 11.00% 50% 8.00% 14.00% 10.00% 19.00%
image text in transcribedimage text in transcribed

10-1 The Tiger Co. is considering an expansion of its product line and is evaluating two independent projects: Project A and Project B. The required rate of return applicable to Project A is 12%, and 16% for Project B. The estimated yearly cash flows (in millions) for each project are presented in the table below: YEARS Project A Project B Year 0

Which of the following describes the minimum desired rate of return? O Discount rate O Required rate of return O Hurdle rate O All of the above. What is the effect of having a higher interest rate when evaluating a set of future cash flows? It is not possible to tell O The future value is lower The present value is higher O The present value is
image text in transcribedimage text in transcribedimage text in transcribed

7. Ground rent or surface rent means (a) Minimum rent (b) Maximum royalty payable (c) Minimum royalty payable (d) Fixed rent payable in addition to minimum rent
image text in transcribed

A) What are the offer prices on each fund? The offer price of the high load fund is \$ . The offer price of the low load fund is \$ - The offer price of the no load fund is $ Round your answers to 4 decimal places. B) How many shares of each fund could you purchase? You could purchase shares of the high load fund. You could purchase shares of the
image text in transcribed

Ultravision Incorporated anticipates sales of $290,000 from January through April. Materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of January, February, March, and Aprii. Materiais are paid for one month after the month purchased. Materials
image text in transcribed

An investment you made 17 years ago has grown from $12,000 to $25,000. What rate of return did you earn on this investment? 4.41%4.10%3.55%3.35%3.82%
image text in transcribed

Intro A corporate bond with annual coupons has a yield to maturity of 6% and a current price of $972. As the yield to maturity falls by 0.2 percentage points, its price increases by $15.72
image text in transcribed

Assume there are 2 projects Large (L) and Small (S) & WACC=15%. The Large project cashflows at time 0, 1, 2, 3 and 4 respectively are: -1000, 250, 350, 400, 500. The Small project cashflows at time 0, 1, 2, 3 and 4 respectively are: -105, 25, 50, 50, 50. Assume the projects are mutually exclusive and Jack selects project(s) based on NPV. What is

b. Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B? Portfolio represents the optimal strategic allocation for Ms. A. Portfolio is the optimal allocation for Mr. B. b. Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B? Portfoli
image text in transcribedimage text in transcribedimage text in transcribed

If you deposit Tk 8000 at the end of per year in a Bank, how much will you 1 point have after 12 years at 10% interest rate. (Calculate using formula)* 131063 142741 151986 171074 Your grandfather offers you a choice of ()TK. 2500 at the end of each year 3 points for eight years: or (ii) Tk. 32000 at the end of eight years. Assuming you could earn
image text in transcribed

If these 200 loans are pooled to create a MPT, what is the starting pool balance in dollars? Assume the loans are not seasoned before securitization. Maturity 360 Number of Loans 50 100 50 Principal $200,000.00 $250,000.00 $300,000.00 Mortgage Rate 5.00% 4.00% 4.25% 180 360
image text in transcribed

Hawk plc has the following projects in which it can invest: Project NPV at =0, m A Cash outflow at t=0, m 10 13 3.8 5.0 4.8 Present value at t=0 of cash inflows, m 19 38 7.3 9.9 7.1 MOOD 9 25 3.5 4.9 2.3 Hawk has no other investment opportunities. Projects C and D are mutually exclusive. The capital investment budget at t=0 is limited to 25
image text in transcribed

Showing 100 - 200 of 1506
  • 2 / 16