RapidVolt, LLC. is an upstart company that designs and manufactures residential electric car chargers. The company expects
Question:
RapidVolt, LLC. is an upstart company that designs and manufactures residential electric car chargers. The company expects its sales to reach 100,000 units that sell for $600 each. RapidVolt shrewd management was able to keep tight control on cost through long-term and future contracts strategies, limiting the cost to produce each system to 25% of its price, and keeping GS&A at $10 million. The founders started with $10 million of equity funds and a $20 million 15% loan from a strategic investor. RapidVolts 2018 financial statements contain the following data:
Shares of Common Stock Outstanding 1,000,000 shares
Depreciation $3,000,000
Fed-to-State Tax Rate 40%
Dividend Payout Ratio 15%
Introduction to Finance Markets Investments and Financial Management
ISBN: 978-1118492673
15th edition
Authors: Melicher Ronald, Norton Edgar