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!
We are considering buying a widget fogger for $50,000. It will be depreciated according to the SACRS schedule (30%, 25%, 15%, 15%, 15%). We plan to keep it for 3 years and then sell it for $4,000. Our tax rate is 20%. This new machine will help us in two ways. Fogged widgets can be sold for more, so the machine will raise revenues by $2,000, and it will save $4,000 each year in costs. What are the after-tax operating cash flows (including the depreciation tax shield) that would result in each year during the three-year life of the new machine?
(a) Write the depreciation table. Calculate the cash flows resulting from the sale of the machine at time 3.
(b) What are the cash flows associated with the purchase of this machine, beginning with its purchase and ending with its sale?
Atlas Mines has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 2.75 percent annually. The firm just paid an annual dividend of $1.67. What will the dividend be six years from now?
The Western Capital Growth mutual fund has Total assets $ 714228000 Total liabilities $7567000 Total number of shares 27448000 What is the fund's net asset value (NAV)?
Stock R has a beta of 1.4, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 5%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exc..
Using annual, semiannual, and quarterly compounding periods for each of the following, (1) calculate the future value if $5000 is deposited initially and (2) determine the effective annual rate.
Adjusting a portfolio to make its duration neutral is sometimes referred to as immunizing the portfolio, a term that indicates it is being protected against interest rate changes. When the durations of a firm's assets and liabilities are significantl..
Dusit is financed 33% by debt yielding 8.3%. Investors require a return of 15.3% on Dusit’s equity. What is the company’s weighted-average cost of capital if the corporate tax rate is 35%? What would be the company’s cost of capital if it were exempt..
Garner-Wagner has a project that produces the following cash flows: CF0 = −3,000,000; CF1−5 = 500,000; and has a discount rate of I/YR = 10. CF0 = −3,000,000; CF1−5 = 500,000; I/YR = 10. If Garner-Wagner goes ahead with this project today, it will ob..
The treasurer of a middle market, import-export Company has approached you for advice on how to best invest some of the firm’s short-term cash balances. The company, which has been a client of the bank that employs you for a few years, has $250,000 t..
A borrower has a 5% chance of default on a $100 loan; If default occurs, the bank gets $60 back in principal and no interest; The bank sets the rate on the loan expecting 6% (3% inflation + 3% real) What is the interest rate the bank charges this bor..
You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset.
The beta of M Simon Inc., stock is 1.4, whereas the risk-free rate of return is 0.06. If the expected return on the market is 0.16, then what is the expected return on M Simon Inc?
The Internal Rate of Return (IRR) Model suffers from three problems. Which of the below is NOT one of these problems? Comparing mutually exclusive projects
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