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!
A firm has decided to replace a major piece of industrial equipment. The equipment costs $690,000 to purchase and install and is expected to have a useful life of 5 years, after which it will be sold on the open market and is expected to have a salvage value of $200,000. The firm has a required return on equity of 14% and a large number of outstanding common shares held by many small investors. The firm is financed 50% with debt and 50% with equity.
The new equipment will be one of a large group of assets with a CCA rate of 20%. The firm will finance the purchase with a bank loan at the rate of 7% per year, the same interest rate it pays on its current debt. The loan will be repaid in equal installments at the end of each year. The corporate tax rate is 40%. The company is responsible for maintenance and insurance costs of $40,000 per year. The new equipment will allow the firm to increase production, and sales will increase by $270,000 per year.
Calculate the WACC of the project, and find the NPV of the project using the WACC as your discount rate.
McCormick Corporation issued a 4-year, $63,000, 5% note to Greenbush Company on January 1, 2014, and received a computer that normally sells for $49,605. The note requires annual interest payments each December 31. The market rate of interest for a n..
from books of aggarwal bors following information has been extracted rs. sales 240000 variable costs 144000 fixed costs
Use Runge-Kutta method to answer the solution.
Roth Corp. wants to raise $4.4 million via a rights offering. The company currently has 540,000 shares of common stock outstanding that sell for $42 per share. Its underwriter has set a subscription price of $30 per share and will charge the company ..
A man purchased a stock one year ago for $25. The stock is now worth $34, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends that he received for owning the stock during the year?
Five years ago you took out a mortgage for $250,000 at 5.5% for 30 years. You just received an inheritance of $15,000 from your uncle’s estate. If you use all of that to reduce the principal balance of your mortgage, how many more months will you nee..
What is your total return on the stock? What is the dividend yield? What is the capital gains yield and what is the expected return of the stock according to the security market line?
You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. If you are accepted into medical school, then you’re starti..
Burke Tires just paid a dividend of D0 = $1.50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the..
It will cost $3,500 to acquire a small hot dog cart. Cart sales are expected to be $1,500 a year for three years. After the three years, the cart is expected to be worthless as that is the expected remaining life of the cart. What is the payback peri..
The New York Stock Exchange is an example of a stock exchange that has a physical location. e) A larger bid-ask spread means that the dealer will realize a lower profit. f) The efficient market hypothesis assumes that all inventories are rational.
A company has dividend of $2 per share, earnings per share of $8 and plowback ratio of 75%. What is the payout ratio?
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