Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: The Deluxe Corporation has just signed a 168-month lease on an asset with a 19-year life. The minimum lease payments are $1,300 per month ($15,600 per year) and are to be discounted back to the present at a 9 percent annual discount rate. The estimated fair value of the property is $165,000. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Assume the lease is set up as an annual lease. a. Calculate the lease period as a percentage to the estimated life of the leased property. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Lease period percentage 74.00 % b. Calculate the present value of lease payments as a percentage to the fair value of the property. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
PV of lease payment percentage %
c. Should the lease be recorded as a capital lease or an operating lease? (Use criteria 3 and 4 for a capital lease.)
Capital lease
Operating lease
kmw inc. plans to pay a dividend of 0.50 per share both 3 and 6 months from today. kmws share price today is 36.00 and
the time clock co. is trying to decide which one of two projects it should accept. both projects have the same start-up
Describe a recent development in the Investment Banking industry. What implications might this development have for the Business Analysis Department where you intend to join?
You are considering the replacement of a machine which has a current book value of $55,000 and market value of $62,000. The machine is expected to last another.
Roland & Company has a new management team that has developed an operating plan to enhance upon last year's ROE. What does Roland & Company expect return on equity to be following the changes?
ti paid a dividend of 5.25 on its common stock yesterday. the companys dividends are expected to grow at a constant
if excel inc. has projected sales of $30,000 in january, $20,000 in february, and $20,000 in march 80% of sales are on credit 20% are collected in the month of sale and 80% are collected the month after, what are cash receipts in march?
Suppose the firm uses straight-line depreciation for tax purposes (so that the cost of refurbishing is completely depreciated over ten years) and pays 35% in corporate income taxes. Finally, suppose that the opportunity cost of the firm's investor..
Indicate whether each of the following statements is true, false, or uncertain, and justify your answer.
If your cost capital is 12%, compute the NPV of each and indicate which project, if any, you should select.
Does the different treatment of financial assets and liabilities affect inferences you draw from the decomposition of ROCE? Explain.
Find the net proceeds from sale of the bond, Nd? Show the cash Flows from the firm's point of view over the maturity of the bond. Calculate the before-tax and after-tax costs of debt.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd