Calculate the initial investment in this equipment

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Questions -

Q1. MNN inc has an expected dividend next year of $3.90 oer share, a growth rate of dividends of 2 percent and a required return of 9 percent. the value of a shared MNN Inc's common stock is

A) 55.71

B) 43.33

C) $56.83

D) $34.45

Q2. LynIT Ltd issued a 10 year. 7% coupon interest rate, $1000 per value bond that pays interest semi-annually. The required return is 5%. Compute the value of the bond

A) $1,155.89

B) $1.154.43

C) $857.88

D) $610.27

Q3. Jane operates an oriental restaurant chain that uses 9000 bottles of soya sauce per year. The ordering cost of the soya sauce is $20 per order and the carrying cost is $2.50 per unit per year. what is the economic order quantity?

A) 450

B) 47

C) 260

D) 380

Q4. Company H is planning to purchase a machine for $100,000 and will incur an additional $10,000 in an installation expenses. it is replacing a similar machine that can be sold for $30,000. Because of this transaction. The company's current assets will increase by $6000 and current liabilities will increase by $3000. Calculate the initial investment in this equipment

A) $83,000

B) $100,000

C) $110,000

D) $80,000

Reference no: EM133144993

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