User Account

All Pages

What factors should abc consider

Assignment Help Corporate Finance
Reference no: EM13972725

1. ABC Corp. owns a piece of land and building a few miles from its headquarters. The land originally cost ABC $500,000 to purchase. ABC is considering using the facility for a new training program. It could also rent a building about the same distance from its headquarters for $20,000 a year. A developer has offered ABC $2.5 million for its property. What factors should ABC consider when deciding whether or not to use its own facility or to sell it and rent the other building? What would you recommend? 

Reference no: EM13972725

Questions Cloud

Smithson company uses a job-order costing system : Smithson Company uses a job-order costing system and has two manufacturing departments--Molding and Fabrication.  The company provided the following estimates at the beginning of the year
Explain how the literary techniques define : Explain how the literary techniques define and draw out this conflict. Provide specific examples by quoting, paraphrasing, and/or summarizing.
Potential tax problem with sale of land : Nall had purchased the land for $62,000. Write a memorandum to the controller of Nall, Inc., explaining the potential tax problem with the sale of the land to Trebor.
Shares of common stock outstanding : In each of the following cases, determine whether Inez is a related party: a. Inez owns 500 shares of XYZ Corporation's common stock. XYZ has 50,000 shares of common stock outstanding.
What factors should abc consider : A developer has offered ABC $2.5 million for its property. What factors should ABC consider when deciding whether or not to use its own facility or to sell it and rent the other building? What would you recommend?
Obtaining state and local government finance data : Obtaining State and Local Government Finance Data - Preparing the 2nd Part of the Finances Database
Amount of tax sheila pays with adam : Adam and Tanya's $90,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanya's tax. How well does the ability-to-pay concept work in this situation?
What is profit planning and how is it being used here : What is this case about? What is profit planning and how is it being used here? Is it being done properly? Do you see an ethical dimension to this case? If so what is it? What is the CEO's role in any problems at the company.
Purchases of goods and services : Which of the following are based on an ability to pay? Explain. a. State Y collects a sales tax of 5% on all purchases of goods and services.

Reviews

Write a Review

Corporate Finance Questions & Answers

  What is richmond corporations total net cash flow

What is Richmond Corporation's total net cash fl ow from the current lockbox systemavailable to meet payroll and what cost of ACH transfers would make the company indifferent between the twosystems

  Prepare a forecasted income statement

Cost of sales forecast uses the average percent relation between cost of sales and sales for the three-year period ending June 30, Year 11 and Prepare a forecasted income statement for Year 12 using the following assumptions ($ millions):

  An investor is uncertain about how much to invest in two

an investor is uncertain about how much to invest in two risky assets. the first asset equity yields an expected return

  Calculate ocf and fcf

Calculate OCF and FCF - calculate Apple company

  The cost of capital for goff computer inc you have recently

the cost of capital for goff computer inc. you have recently been hired by goff computer inc. gci in the finance area.

  Calculate the cost fo the preferred shares

Calculate the cost fo the preferred shares and what is the after-tax cost of the preferred shares and if the firm sells the preferred stock with a 10 percent annual dividend and nets $90 after flotation costs, what is its cost?

  Financial intermediaries

Financial institutions are subject to regulations to ensure that they do not take many risk & can safely facilitate the flow of funds through financial markets.

  Compute the share price

Receiving per share for 2010 had been 22.8 pence, & Andrew Osborne expects this to rise to 25 pence per share for 2011.  Compute the share price.

  How frequently are cash dividends paid

How frequently are cash dividends paid? What has been the pattern of the cash dividend amount per share relative to the pattern of earnings per share?

  Depreciate the new safety-croc model

Assume that you are in a 30% tax bracket. Calculate the NPV - depreciate the new "Safety-Croc" model straight line for 3 years to a salvage value of zero and your required rate of return is 15%, should you replace your crocodile

  What was the effect of the transaction on cash flows

Fully depreciated equipment costing $55,000 was discarded. What was the effect of the transaction on cash flows if (a) $5,000 cash is received, (b) no cash is received?

  Solving financial analysis problem

Acme producing is a decentralized company. Sections are treated as investment centers. In recent years, Acme has been running about 11 percent ROA for company as a whole, and has a cost of capital of 9%.

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