User Account

All Pages

Invest in addition annually to achieve that goal

Assignment Help Business Economics
Reference no: EM131802257

1If you have $5,000 to invest today, can earn 8% per year on your investment and would like $75,000 in 10 years, how much would you need to invest in addition annually to achieve that goal?

a.   What are you solving for?                                        

b.  What is your answer?                                               

If you take out a car loan for $35,000, will pay an annual interest rate of 4% on the loan, and make monthly payments of $547.58, how many payments will you need to make?

a.   What are you solving for?                                           

b.  What is your answer?                                                  

If I will have $25,000 in 10 years, will earn 10% interest annually on my investment, will not make any payments during the interim, how much must I invest today?

a.   What are you solving for?                                            

b.  What is your answer?                                                    

Our company has $100 million in Common Stock and no preferred stock, the company's tax rate is 25%, each share is currently selling for $125.00, dividends for the past 5 years have been:

2015 $3.50

2014 $3.04

2013 $2.65

2012 $2.30

2011 $2.00

What is our required return for Common Stock?

Our company has $75 million in Bonds outstanding, that have a par value of $1,000, a coupon rate of 12%, and is currently selling for $950. The company's tax rate is 25%. What is our required return for Bonds?                                                                         _

Our company has no Preferred Stock and using the information in questions 4 and 5

a.   How much capital does the company have?    

b.  What percentage of our capital is common stock?

 c.   What is the Weighted Average Cost of Capital for our company?                                      _

Our company has 3 projects to evaluation and $575,000 to spend. Given the information in problems 4, 5 and 6, the project results are as follows:

Project 1: Investment is $300,000 and the NPV is $10,500 Project 2: Investment is $300,000 and the NPV is -$8,500 Project 3: Investment is $275,000 and the NPV is $9,500 What decisions do you make regarding the projects?

Our company has 3 projects to evaluation and $625,000 to spend. Using the information from problems 4,5, and 6, the project results are as follows:

Project 1: Investment is $300,000 and the IRR is 10.5% Project 2: Investment is $300,000 and the IRR is 14.5% Project 3: Investment is $275,000 and the IRR is 13.5% What decisions do you make regarding the projects?

Reference no: EM131802257

Questions Cloud

What was the amount of best buy cost of merchandise sold : Question - Determining cost of merchandise sold. Its gross profit was $10,998 million. What was the amount of Best Buy's cost of merchandise sold
Maximizing shareholder interests : How does maximizing the value of the corporation differ from maximizing shareholder interests?
What attributes help define a project success : How are organizations in today's competitive environment making progress to deliver projects expected benefits and provide value?
Lower transportation classification for new product : Assume the role of a firm trying to negotiate a lower transportation classification for a new product.
Invest in addition annually to achieve that goal : 1If you have $5,000 to invest today, can earn 8% per year on your investment and would like $75,000 in 10 years, how much would you need to invest.
Explain the primary determinants of the health issue : Describe the specific population(s) (ethnic or racial group, homosexuals, veterans, women, children, adolescents, etc.) affected .
The simplest vehicle for international expansion : The simplest vehicle for international expansion is _____. Implementing the integration of a new acquisition is ______.
Determine the amount of working capital : Assume that cash is used to pay the balance due on accounts payable. Compute the new current ratio. Determine the amount of working capital
What is the? stock expected rate of? return : a. If? NCP's current market price is ?$21.17 per? share, what is the? stock's expected rate of? return? Round to two decimal? places.)

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd