User Account

All Pages

Question regarding the project payback

Assignment Help Finance Basics
Reference no: EM131100945

Project K costs $75,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

Reference no: EM131100945

Questions Cloud

A businessman trying to reach phoenix and mistakenly : AT&T was running commercials in 1990 aimed at luring back customers who had switched to one of the other long-distance phone service providers. One such commercial shows a businessman trying to reach Phoenix and mistakenly getting Fiji, where a ha..
Calculate the firm''s market value capital structure : The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 10 percent, the same as the rate on new bank loans. The long-term debt consists of 30,000 bonds, each of which has a par vale of $1,000, carries..
Grow at a constant rate : Harrison Clothiers' stock currently sells for $17 a share. It just paid a dividend of $3.5 a share ( that is, D - 3.5). The dividend is expected to grow at a constant rate of 8% a year.
Relationship between inflation and interest rates : What is the relationship between inflation and interest rates? How does this relationship affect asset prices? How does the unemployment rate affect interest rates? How do changes in interest rates affect the balance of payments?
Question regarding the project payback : Project K costs $75,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
How much of the new investment must be financed : To maintain the present capital structure, how much of the new investment must be financed by common equity?Assume that there is sufficient cash flow such that Tysseland can maintain its target capital structure without issuing additional shares of e..
Preferred stock valuation : Fee Founders has perpetual preferred stock outstanding that sells for $34.00 a share and pays a dividend of $4.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.
What will be next year''s eps : a. If investors require a 9 percent return, what rate of growth must be expected for Sidman? b. If Sidman reinvests earnings in projects with average returns equal to the stock's expected rate of return, what will be next year's EPS?
Question regarding the bond current market price : Callaghan Motors' bonds have 7 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 9%, and the yield to maturity is 7%. What is the bond's current market price? Round your answer to the..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the mean-standard deviation frontier

What is the mean-standard deviation frontier, and what is the mean-variance-efficient (MVE) portfolio? What is the prediction of the CAPM with respect to optimal portfolio choice?

  The increasing returns revolution in trade and geography

Can you please write a summary of the Article "The increasing returns revolution in trade and geography" by Krugman, paul - Why did the problems facing the trade counterculture seem to melt away?

  All else constant if the default correlations between the

a standard synthetic cdo references a portfolio of 10 corporate names. assume the following. the total reference

  At what price should schulers stock sell

If the dividend expected during the coming year, D1, is $2.00, and if g is a constant 2.75%, then at what price should Schuler's stock sell? Round your answer to the nearest cent.

  Interest earned tell us about fixed charge coverage explain

What does times interest earned tell us about a firm's short-term and long-term debt paying ability? What does times interest earned tell us about fixed charge coverage? Explain.

  Change in benefit sharing

No goodwill record showed up in the books of the firm and none was opened on change in benefit sharing proportion. Pass diary sections to make the essential alterations.

  The sampp 500 index is priced at 95046 the annualized

the sampp 500 index is priced at 950.46. the annualized dividend yield on the index is 1.40. what is the price of a

  Go to wwwvaluelinecom and look under the dow complimentary

go to www.valueline.com and look under the dow complimentary tab on the left. choose a stock and tell me whether you

  What is the difference between shareholder reporting

What is the difference between shareholder reporting and tax reporting of profits?

  What is the new interest rate in the market

If interest rates suddenly fluctuated and the value of your firm's equity were to decrease by $120,000, what is the new interest rate in the market?

  Consolidation criterion led

When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares of another firm?

  What would be the estimated cost of equity

Currently, the cost of equity, rs, is 11.5% as determined by the CAPM. What would be the estimated cost of equity if the firm used 60% debt?

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