Question: help me answer it correctly You were just appointed Chief Financial Officer of Hanz Co, a major metal manufacturer in Chama, New Mexico. For a

help me answer it correctly

help me answer it correctly You were just
You were just appointed Chief Financial Officer of Hanz Co, a major metal manufacturer in Chama, New Mexico. For a long time, the corporation has been using the net present value technique to evaluate its investment initiatives. The company carries out all projects with a positive net present value on the basis of data provided by the project proponent. The weighted capital cost of Hanz Co is estimated to be 15%. In the last five years, this cost of capital has stayed relatively constant. In the last 5 years, Hanz Co has generated an average return on assets of 8 percent. You are worried about the apparent discrepancy between Hanz Co's capital expense and earnings. The CEO has requested that you produce a status report. What variables (both inside and outside the company) may account for this apparent performance discrepancy? What is the relationship between funding arrangements and vertical coordination? Do varying degrees of vertical coordination have an effect on the benchmarks for key financial ratios? Justify. In addition to its present loan program, a Farm Credit System is working on a capital leasing program for its farm clients. Farm tractors are financed over a five-year period at a 10% interest rate, with payments evenly amortized. Find the yearly rent the Farm Credit System would impose on the lease to provide the same return as the loan rate, assuming the tax rate is 34 percent. Assume a 10% residual value on tractors, a 5-year lease period, year-end lease payments, full usage of MACRS, a 0.15 FCS equity-to-asset ratio, and a 5% cost of capital. (Note that the tractor or rental payments are not given a particular amount.) As a result, you should do your analysis on a dollar-for-dollar basis.) What is the difference between this rent and the farmer's cash payments for commercial loans? What does this mean for the Farm Credit System and other creditors that provide capital leasing

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