Question: Question 3. Matex Corp. needs to purchase new plastic moulding machines to meet the demand for its product the cost of the equipment is $6,616,000.

Question 3. Matex Corp. needs to purchase new plastic moulding machines to meet the demand for its product the cost of the equipment is $6,616,000. It is estimated that the firm will increase after tax cash flow (ATCH) by $1,622,277 annually for the next 5 years. The firm is financed with 10% debt and 60% equity, both based on current market values, though the firm has announced that it wants to quickly change its debt to aqulyatoto The firm's beta is 1.73, the risk free rate is 1.47% and the expected muket return is 6.40% Matex Corp's sem annual bonds have 12.10% coupons 12 years to maluty, and a quoted price of 95.74L Assume the firm's tax rate is 31% The firm's last 5 dividends (the last in the list is DO) are 1.23. 1.50 1.99, 2.54, and 299. Its current market price is $39.93. Question 3, Short Answer C. Assume that there are some large cleanup and disposal costs of $661 600 at the end of the project in year 6). Explain in a sentence or two how this impacts the calculation of the internal rate of return? Note that no additional calculation is required to answer this question (10 marks) Question 3. Matex Corp. needs to purchase new plastic moulding machines to meet the demand for its product the cost of the equipment is $6,616,000. It is estimated that the firm will increase after tax cash flow (ATCH) by $1,622,277 annually for the next 5 years. The firm is financed with 10% debt and 60% equity, both based on current market values, though the firm has announced that it wants to quickly change its debt to aqulyatoto The firm's beta is 1.73, the risk free rate is 1.47% and the expected muket return is 6.40% Matex Corp's sem annual bonds have 12.10% coupons 12 years to maluty, and a quoted price of 95.74L Assume the firm's tax rate is 31% The firm's last 5 dividends (the last in the list is DO) are 1.23. 1.50 1.99, 2.54, and 299. Its current market price is $39.93. Question 3, Short Answer C. Assume that there are some large cleanup and disposal costs of $661 600 at the end of the project in year 6). Explain in a sentence or two how this impacts the calculation of the internal rate of return? Note that no additional calculation is required to answer this question (10 marks)
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