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!
One year ago your company purchased a machine for $110,000. You have learned that the new, much better machine is available for $150,000. In will be depreciated on a straight line basis and has no salvage value. You expect the machine to produce $60,000 per year in revenue and cost $20,000 per year to operate for the next ten years. The current machine is expected to produce $40,000 per year in revenue and also costs $20,000 per year to operate. The current machine’s depreciation expense is $10,000 per for the next 10 years, after which it will be discarded. It will have no salvage value. The market value of the current machine today is $50,000. Your company’s tax rate is 45% and the opportunity cost of capital is 10%. Should your company replace its year-old machine?
Bowman, Inc., is proposing a rights offering. Presently there are 600,000 shares outstanding at $47 each. There will be 120,000 new shares offered at $38 each. What is the new market value of the company? How many rights are associated with one of th..
Compute the cost of capital for the firm for the following: a. A bond that has a $1,000.00 par value (face value) and a contract or coupon interest rate of 11.7 percent. Interest payments are $58.50 and are paid semi annually. The bonds have current ..
A financial institution is permitted to use leverage up to a maximum debt to equity ratio of 20. Currently the bank finances its $ 100 of assets with $10 of equity. In the 10-K filed by Bear Stearns and Company for the fiscal year ending November 30,..
A company would like to invest in a capital budget project that will be worth $500,000 in 40 years. How much should the company invest today, assuming an average inflation rate of 2% and a 10% annual return?
MacDonald's Hamburger Company wants to hedge its anticipated purchase of 1,600,000 pounds of hamburger with the live cattle futures contract (40,000 lb. of live cattle per futures contract). The estimated relationship between the price that MacDonald..
Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.9%. If Joan sold the bond today for $1,033.23, what rate of ret..
Deep Water Drilling has operations off the coast of South America helping its clients (principally sovereign oil companies) tap into oil reserves located more than 10,000 feet below sea level. The Company’s cost of capital is 6%. If Deep Water Drilli..
The goal of this project is to create a worksheet that through inputs and a series of formulas, be a basis of an expandable tool, that you can use to create project an amortization schedule.
You want to buy a new sports coupe for $52,250, and the finance office at the dealership has quoted you a 8.0 percent APR loan for 60 months to buy the car. Your monthly payment will be $ ___ and the effective annual rate on this loan is ___ percent.
Describe the key responsibilities of one of these roles in the sector based on your interview -
This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.
Mahjong, Inc., has identified the following two mutually exclusive projects: What is the IRR for Project A? If the required return is 8 percent, what is the NPV for Project A? At what discount rate would the company be indifferent between these two..
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