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!
You have the following projects to consider
Project
Cost ($thousands)
NPV
IRR
A
$300
280
33%
B
$4,200
1775
14.2%
C
$6,300
1800
10.6%
D
$2,000
175
9.6%
Right now your debt rate is 6.3% and makes up 45% of the company capital structure with a tax rate of 30%. Equity is at 13.7% and makes up the rest of the capital structure. What will be the cost of capital for each project individually if you want to maintain the current capital structure, but the rates work as follows; we have $1.45 million in internal equity to use, if we go beyond that limit our equity rate goes to 15.1%. We can raise additional debt at the current rate up to $750 thousand. After that it goes to 6.7% and if we raise more than $2.5 million in debt it goes to 7.5%. Which projects should we do?
A portfolio manager is considering the effect of a 75 basis point cange of interest rate on a bond with Par = 1000, Price = $985 and Duration =4.8. The most appropriate price change would be
If the firm requires a minimum average accounting return of 11.65% what must be the minimum average net income for the project to be accepted?
Are your answers to parts A and B above consistent in present value terms (are they equal)? If yes, why? If not, why not?
Explain your position. What is the best way for an auditor to reduce their liability? Why?
Explain the time value of money principle and also identify the underlying assumption of that principle.
What level of sales could Seattle Coffee have obtained if it had been operating at full capacity? Round your answer to the nearest cent.
Calculate the present value of $14,000 and decide whether it will be a good investment or not? Please, explain.
As part of a consulting assignment you have been asked to review the appropriateness of a hotel's responsibility accounting system.
Cash flows from operating activities for both the indirect and direct methods are presented for Electronic Transformations.
An investment costs $3,000 at present and provides cash flows at the end of each year for 20 years. The investment's expected return is 10%.
An index is currently at 1,200. The three-month risk-free rate is 3% per annum and the dividend yield over the next three months is 1.2% per annum.
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth.
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