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!
Premium Pie Company needs to purchase a new baking oven to replace an older oven that requires too much energy to run. The industrial size oven will cost $1,200,000. The oven will be depreciated on a straight-line basis over its six year useful life. The old oven cost the company $800,000 just four years ago. The old oven is being depreciated on a straight-line basis over its expected ten year useful life. (That is, the old oven is expected to to last 6 more years if it is not replaced now.) Due to changes in the fuel costs, the old oven may only be sold today for $100,000. The Expenses will also decrease by $50,000 per year due to the more energy efficient design of the new oven. The premium pie company is in the 40% marginal tax bracket and has a required rate of return of 10%
Calculate the net present value and internal rate of return of replacing the existing machine.
A corporation's last dividend was $1. Its dividend growth rate is expected to be constant at 15 percent for two years, after which dividends are expected to grow at a rate of 10% forever. The required return is 12%.
The manager of the Petroco Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The owner has accumulated the following data on demand for unlea..
You bought a bond with a face value of $1,000 four years ago at a yield-to-maturity of 6%. When the bond matured today, you realized a capital gain of $43.31. If the bond had paid annual coupons, what was the original coupon rate?
Heavy Metal Corporation is expected to generate the following free cash flows over the next 5 years:
Jarel purchased 80% of the outstanding voting stock of Suarez for $260,000. Of this payment, $20,000 was allocated to equipment that had been undervalued on Suarez's books by $25,000.
McCormac Co. wishes to maintain a growth rate of 12 percent a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .75.
Because the two divisions are the same size, the company has composite of WACC of 11%. Division B is considering a new project with an expected return of 12%.
Discuss the pros and cons of using the past performance of stocks and bonds as a means of predicting future performance, and make at least one recommendation for making this technique more accurate.
Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.
Determine a firm's weighted average cost of capital.
Which worker will have more in his or her account when he or she retires if they both earn 8% on their investment? How much?
Explain how expected rate of return used to value stock.
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