Question: Please answer all the questions and show all the step, thanks! 1.You purchase equipment for $20,000. You expect to sell the equipment for $1,800 when

 Please answer all the questions and show all the step, thanks!

1.You purchase equipment for $20,000. You expect to sell the equipment for

Please answer all the questions and show all the step, thanks!

1.You purchase equipment for $20,000. You expect to sell the equipment for $1,800 when you are done with it in 5 years. The company's marginal tax rate is 30%, what is the depreciation expense for each year and the after-tax salvage in year 5 if straight-line method is adopted? Supposed that the company pay dividend of $1.00 per share this year. The dividend growth rate for the first three year is 10%. There will be a steady growth in dividends of 8% afterward. The required rate of return is 15%. What is the current price of the stock? 2. Suppose you company has an equity beta of 1.55, and the current risk-free rate is 5%. If the expected market risk premium is 8%, what is your cost of equity capital? How does the beta value affect the cost of equity?4 4. You are considering a project that will require an initial outlay of $200,000. This project has an expected life of five years and will generate after-tax cash flows to the company as a whole of $60,000 at the end of each year over its five-year life. Thus, the free cash flows associated with this project look like this: Given a required rate of return of 10% percent, calculate the following:d 3. a. Discounted payback period b. Net present value c. Profitability index d. IRR

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