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!
Pantaloon Beer is considering opening a microbrewery near campus. To open the brewery, they must purchase $250 in equipment. Shipping of the equipment will cost $40 and installation of the equipment will be $30. Pantaloon will lease a building for $384 per year. The building will need modifications costing $100. Both the modifications and equipment are depreciated using the 5 year MACRS schedule. Pantaloon will operate the brewery for four years, and then expects to sell the brewery to an investor for $500 plus any working capital. The firm will have some one-time expenses in year 1 of $120, primarily licenses and legal fees. To operate the brewery, Pantaloon will need an increase in Inventory of $17, an increase of Accounts Receivables of $19, and will have an increase in Accounts Payable of $15. Working capital will be recovered when we sell the brewery.
Annual sales will begin at $600, the increase at $600 per year. Thus year 2 sales are $1200, year 3 are $1800 and year 4 are $2400. Cost of Goods Sold (excluding overhead, depreciation, and lease payments) are 60% of annual sales. To operate the company, executives and administrators must be hired, at an annual fixed cost of $500.
Over the past two years, Pantaloon has been testing the concept by using a contract brewer. Last year's sales were $100 with a cost of goods sold of $120. 40% of the project financing will come from a three-year 6% annual coupon bond. The firm needs new equity investors to fund the expansion and Pantaloon has only been able to find one equity investor. This equity investor requires that the firm have audited financial statements. The outside investor gets to choose the auditor and the auditor would cost the company $30 per year. The firm's tax rate is 30%. The cost of capital is 13%.
Calculate the total value added of all the manager's decisions this period and calculate the value added (or subtracted) by her country allocation decisions - What was the contribution of security selection to relative performance
If the firm is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows?
csh has ebitda of 5 million. you feel that an appropriate evebitda ratio for csh is 9. csh has 10 million in debt 2
identify and recommend at least 1 credible web site that discusses the process of calculating the cost of capital and
What is the initial cost figure Gold should use when evaluating its project? (Round answer to 2 decimal places. Do not round intermediate calculations).
The consolidated balance sheets for the Hoffmeister Lumber Company at the beginning and end of 2015 follow. The company bought $50 million worth of fixed assets. Fill in the amount of the source or use in the appropriate column. Prepare a statement o..
How would you analyze these alternatives?- What if the biweekly loan was available for 5.75 percent? How would your answer change?
Explain the distinction between interest rates and returns. Explain two of the three theories of interest rate determination. Identify each theory by name.
lease versus purchase decision. sanchez co. is considering a capital lease providing additional warehouse space for
The Belgium Bike Company just paid an annual dividend of $1.12. If you expect a constant growth rate of 4% and have a reqquired rate of return of 13%, what is the current stock price according to the constant growth dividend model?
hyatt has 20 employees at age 45 who will retire when they become pension eligible at age 65.nbsp at this point they
saunders corp. has a book net worth of 13405. long-term debt is 8600. net working capital other than cash is 3235.
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