I need help with these questions. I will pay $30. This submission limit to $8 only. Can I get by tomorrow noon. 11/16/2017.Please provide excel with calculations

Question 2

Assume that you are comparing two mutually exclusive projects. Which of the following statements is most correct?

Question 2 options:

The NPV and IRR rules will always lead to the same decision unless one or both of the projects are "non-normal" in the sense of having only one change of sign in the cash flow stream, i.e., one or more initial cash outflows (the investment) followed by a series of cash inflows.

If a conflict exists between the NPV and the IRR, the conflict can always be eliminated by dropping the IRR and replacing it with the MIRR.

There will be a meaningful (as opposed to irrelevant) conflict only if the projects' NPV profiles cross, and even then, only if the cost of capital is to the left of (or lower than) the discount rate at which the crossover occurs.

All of the above are true.

None of the above are true.

Question 3

Which of the following statement completions is incorrect? For a profitable firm, when MACRS accelerated depreciation is compared to straight-line depreciation, MACRS accelerated allowances produce

Question 3 options:

Higher depreciation charges in the early years of an asset's life.

Larger cash flows in the earlier years of an asset's life.

Larger total undiscounted profits from the project over the project's life.

Smaller accounting profits in the early years, assuming the company uses the same depreciation method for tax and book purposes.

None of the above. (All of the above are correct.)

Question 4

The relationship between the two key elements of the constant dividend growth model is

Question 4 options:

that D_t+1 is less than the prior one, D_t.

that the growth rate is always positive and greater than the discount rate.

assumes the growth rate is always less than the discount rate.

the long run growth rate is postive

Both B and D.

Question 5

A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. Cost of Debt = 6.5%, Tax rate = 40%, Current Stock Price = $27.56, Long Run Growth rate= 7.5%, Next Year's Dividend = $2.45.Show your answer to the nearest .1%.Do not use the % sign in your answer.Enter your answer as a whole number, thus 9.2% would be 9.2 rather than .092 or 9.2%.

Your Answer:

Question 5 options:

Answer

Question 6

A firm is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for assessing risk. In evaluating this asset, the decision maker should

Question 6 options:

Increase the IRR of the asset to reflect the greater risk.

Increase the NPV of the asset to reflect the greater risk.

Reject the asset, since its acceptance would increase the risk of the firm.

Ignore the risk differential if the asset to be accepted would comprise only a small fraction of the total assets of the firm.

Increase the cost of capital used to evaluate the project to reflect the higher risk of the project.

Question 7

The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20. What is the value of a put option, assuming the same strike price and expiration date as for the call option?

Question 7 options:

$7.33

$8.12

$8.55

$9.00

Question 8

Virus Stopper Inc., a supplier of computer safeguard systems, uses a cost of capital of 12 percent to evaluate average-risk projects, and it adds or subtracts 1 percentage points to evaluate projects of more or less risk. Currently, two mutually exclusive projects are under consideration. Both have a cost of $ 348 and will last 4 years. Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 78 . Project B, of less than average risk, will produce cash flows of $ 241 at the end of Years 3 and 4 only. To the nearest .01, list the NPV of the higher NPV project. Note, if the NPV is negative, place a - sign in front of your answer. Do not use the $ symbol.

Your Answer:

Question 8 options:

Answer

Question 9

Which of the following amounts is closest to what should be paid for Overland common stock? Overland has just paid a dividend of $2.20. These dividends are expected to grow at a rate of 5.7% in the foreseeable future. The risk of this company suggests that future cash flows should be discounted at a rate of 11.2%. Show your answer to the nearest $.01.Do not use the $ sign in your answer.

Your Answer:

Question 9 options:

Answer

Question 10

A firm has the following book-value balance sheet; Debt =$ 19 ,000, Common Stock ($1 par)= 19 and Retained Earnings = $ 27 ,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling at par and the firm's stock is currently selling for $ 17 . The firm's tax rate is 42 %. What is the value of the firm's tax shield (i.e. the change in firm value due to the use of leverage in the capital structure)? Show your answer to the nearest $1. Do not use commas or the $ sign in your answer.

Your Answer:

Question 10 options:

Answer

Question 11

Which of the following statements is most correct?

Question 11 options:

Since stockholders do not generally pay corporate taxes, corporations should focus on before-tax cash flows when calculating the weighted average cost of capital (WACC).

When calculating the weighted average cost of capital, firms should include the cost of accounts payable.

When calculating the weighted average cost of capital, firms should rely on historical costs rather than marginal costs of capital.

Answers a and b are correct

None of the answers above is correct.

Question 12

Suppose you believe that Florio Company's stock price is going to decline from its current level of $82.50 sometime during the next 5 months. For $5.10 you could buy a 5-month put option giving you the right to sell 1 share at a price of $85 per share. If you bought this option for $5.10 and Florio's stock price actually dropped to $60, what would your pre-tax net profit be?

Question 12 options:

-$5.10

$19.90

$20.90

$22.50

Question 13

You are offered an investment with returns of $ 1,427 in year 1, $ 4,286 in year 2, and $ 3,800 in year 3. The investment will cost you $ 8,626 today. If the appropriate Cost of Capital (quoted interest rate) is 10.9 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.

Your Answer:

Question 13 options:

Answer

Question 14

An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a(n)

Question 14 options:

Call option.

Put option.

Out-of-the-money option.

Naked option.

Covered option.

Question 15

You are considering the purchase of an investment that would pay you $92 per year for Years 1-4, $65 per year for Years 5-7, and $51 per year for Years 8-10. If you require a 14 percent rate of return, and the cash flows occur at the end of each year, then how much should you be willing to pay for this investment? Show your answer to the nearest $.01.Do not use the $ sign in your answer.

Your Answer:

Question 15 options:

Answer

Question 16

If Wolves Entertainment Company is acting in the best interests of stockholders (following the primary goal of the firm), which of the following is the optimal (best) capital structure for the firm?

Question 16 options:

Debt = 40%, Equity = 60%, EPS = $2.95, Stock price = $26.50, Cost of Debt = 3.0%

Debt = 80%, Equity = 20%, EPS = $3.28, Stock price = $29.70, Cost of Debt = 5.8%

Debt = 60%, Equity = 40%, EPS = $3.18, Stock price = $31.20, Cost of Debt = 4.0%

Debt = 50%, Equity = 50%, EPS = $3.05, Stock price = $28.90, Cost of Debt = 3.5%

Debt = 70%, Equity = 30%, EPS = $3.42, Stock price = $30.40, Cost of Debt = 5.0%

Question 17

Which is theamount that should be paid for a stock that will pay a dividend of $4.12 in one year and $3.92 in two years? After that, the stock pricewill grow at a constant 5% per year forever.The appropriate discount rate is 12%.Show your answer to the nearest $.01.Do not use the $ sign in your answer.

Your Answer:

Question 17 options:

Answer

Question 18

Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive). Which of the following statements is most correct?

Question 18 options:

All else equal, a project's IRR increases as the cost of capital declines.

All else equal, a project's NPV increases as the cost of capital declines.

All else equal, a project's MIRR is unaffected by changes in the cost of capital.

Answers a and b are correct.

Answers b and c are correct.

Question 19

Under M&M with corporate taxes Theory, Which of the following statements is most correct?

Question 19 options:

Since debt financing raises the firm's financial risk, raising a company's debt ratio will always increase the company's WACC.

Since debt financing (after-tax) is cheaper than equity financing, raising a company's debt ratio will always reduce the company's WACC.

Increasing a company's debt ratio will typically reduce the marginal cost of both debt and equity financing; however, it still may raise the company's WACC.

Statements a and c are correct.

None of the statements above is correct.

Question 20

Can someone solve this question? Thanks

The Target Copy Company is contemplating the replacement of its old printing machine with a new model costing $ 703.The new machine will operate for 3 years and then project will be shut down and all equipment sold. The old machine, which originally cost $ 606, has 2 years of depreciation remaining and a current book value of 22% of the original cost.The old machine has a current market value of $ 442 and should be worth $ 208 at the end of 3 years.The new printing machine could be sold for $ 202 in 3 years.If we buy the new machine our inventory levels will go from $600 to $900.Inventory levels will return to normal at the end of the project. Our annual sales will go from $15,000 to $20,000.Target's corporate tax rate is 25 percent. Both machines are in the 3-year MACRS class, with rates of 33% for year 1, 45% for year 2, 15% for year 3, and 7% for year 4.What are the expected Terminal Cash Flows at the end of year 3, if we replace the old printing machine?This could be a cash inflow or a cash outlay.Be sure to use the - sign should this be a cash outflow.Show your answer to the nearest $.01 Do not use the $ symbol in your answer.

Your Answer:

Question 20 options:

Answer

Question 21

Will's Winery is consideringopening a winery near campus.To open the winery, they must purchase $270 in equipment.Shipping of the equipment will cost $60 and installation of the equipment will be $50.Will's Winery will lease a building for $335 per year.The building will need modifications costing $100, but these will be paid by the landlord.The modifications and equipment are depreciated using the 5-year MACRS schedule.Will's Winery will operate the winery for four years, and then expects to sell the winery to an investor for $600 plus any working capital.The firm will have some one-time expenses in year 1 of $170, primarily licenses and legal fees.To operate the winery, Will's Winery will need an increase in Inventory of $27, an increase of Accounts Receivables of $14, and will have an increase in Accounts Payable of $19.Working capital will be recovered when we sell the winery.

Annual sales will begin at $500, the increase at $700 per year.Thus year 2 sales are $1200, year 3 are $1900 and year 4 are $2600.Cost of Goods Sold (excluding overhead, depreciation, and lease payments) are 50% of annual sales.To operate the company, executives and administrators must be hired, at an annual fixed cost of $450.

Will's has an agreement for a 3-year 6% amortized Small Business Administration Loan to finance part of the project.The firm needs new equity investors to fund the expansion and Will's Winery has only been able to find one equity investor.Both SBA and this equity investor requires that the firm have audited financial statements.The outside investor gets to choose the auditor and the auditor would cost the company $20 per year.The firm's tax rate is 30%.The cost of capital is 13%.

What are the Initial Cash Flows in Year 0?

What are the Operating Cash Flows in Year 2?

What are the Terminal Cash Flows in Year 4? (I want only Terminal Cash Flows, not operating cash flows in year 4)