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!
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $739 per set and have a variable cost of $369 per set. The company has spent $159,000 for a marketing study that determined the company will sell 25,900 sets per year for three years. The marketing study also determined that the company will lose sales of 9,400 sets per year of its high-priced clubs. The high-priced clubs sell at $1,290 and have variable costs of $630. The company will also increase sales of its cheap clubs by 11,900 sets per year. The cheap clubs sell for $349 and have variable costs of $134 per set. The fixed costs each year will be $1,290,000. The company has also spent $1,090,000 on research and development for the new clubs. The plant and equipment required will cost $1,130,000 and will be depreciated using the 7-yr MACRS schedule. It can be sold for 30% of the acquisition cost at the end of the project. The new clubs will also require initial net working capital of $7,590,000 and will maintain a level equal to 25% of the total sales. The tax rate is 35 percent, and the cost of capital is 12 percent. 7-year MACRS 1 14.29% 2 24.49% 3 17.49% Deliverables: 1. An analysis showing the following information: a. Depreciation table with year, MACRS %, depreciation and book value b. Income statements for each year c. Project cash flows for each year d. NPV.
What is the bond’s nominal yield to call? What is the firm’s expected rate of return?
Stanley has $2,400 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,800 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to deliver on h..
what is the value of a call option on one share of this stock? Under risk neutrality, the expected return on an asset will equal:
Newton Kris's plans to give her son $12500 when he is 21 which will be 5 years from now. if Newton finds an investment that will pay 8% compounded semiannually compute the amount that he must invest today to achieve his goal.
Calculate how much sales in dollars are needed to break-even. Use operating leverage to calculate the percentage increase in operating income?
Calculate the variance of portfolio returns, assuming correlation between the returns is 1. Calculate variance of portfolio returns, assuming correlation is 0
A share of stock in the local fast food restaurant chain will pay a next dividend in the amount of $1.50.
What is the total return to an investor who buys a bond for $1,100 when the bond has a 9% coupon rate and five years remaining until maturity and then sells the bond after one year for $1,085? What rate of return should an investor expect for a stock..
Assume the rate on the issuance of $100m of 100-year bonds is 7.5%; the annual debt service payment would be $7.505m. How high would the interest rate have to be on 30-year bonds for the annual debt service payment to be the same for both financings?
what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?
Alternatively, the practice can finance up to 50 percent of its assets with a bank loan. Assuming that the debt alternative has no impact on the expected profit margin, what is the difference between the expected ROE if the group finances with 50 per..
The payback period is nothing years.
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