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!
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $769 per set and have a variable cost of $399 per set. The company has spent $114534 for a marketing study that determined the company will sell 53353 sets per year for seven years. The marketing study also determined that the company will lose sales of 9626 sets of its high-priced clubs. The high-priced clubs sell at $1038 and have variable costs of $742. The company will also increase sales of its cheap clubs by 10726 sets. The cheap clubs sell for $457 and have variable costs of $226 per set. The fixed costs each year will be $8882350. The company has also spent $1173327 on research and development for the new clubs. The plant and equipment required will cost $28289005 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1343483 that will be returned at the end of the project. The tax rate is 28 percent, and the cost of capital is 11 percent. What is the annual OCF for this project? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.) Hint: there are two sunk cost numbers in this question. Also, you want to consider the many spillover effects of the project.
The average unlevered beta of publicly traded Sodium Chlorate businesses is 0.94. Assume zero debt beta. The target capital structure that is appropriate for Collinsville plant is 35% debt and 65% equity. Assume a risk-free rate of 9.5% and market ri..
A fund manager has a well-diversified portfolio that mirrors the performance of the S&P 500 and is worth $510 million. The value of the S&P 500 is 1,700, and the portfolio manager would like to buy insurance against a reduction of more than 5% in the..
1 which of the statements below is false?a if you invest money for a short period and buy a six-month cd you will not
Large Industries bonds sell for $1,121.79. The bond life is 13 years, and the yield to maturity is 6.3%. What must be the coupon rate on the bonds? Assume coupons are paid once a year and the face value is $1,000.
The company sells electronics such as smart phones which has being very successful sellers. However, as with any electronic item, technology changes rapidly. So the company spent $750,000 to developed a prototype for a new smart phone with new featur..
What is the difference between capital structure and capital budgeting? Explain and give an example of a capital structure decision and an example of a capital budgeting decision.
Suppose that a security costs $1,500 today. a Calculate the percentage return on the security if the payoff to the security in one year is $1,000, $1,500, $2,000, or $2,500.
Which of the following statements regarding a firm's optimal capital structure is true? Review the list and identify which items are correct
Find the interest rates earned on each of the following-You borrow $650 and promise to pay back $689 at the end of 1 year. You borrow $92,000 and promise to pay back $321,858 at the end of 12 years.
Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $5.4 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years fo..
The Owner of a small business borrowed $70,000 with an agreement to repay the loan with quarterly payment over a five year time period. If the interest rate is %12 per year compounded quarterly, his loan payment each quarter is nearest to:
Keira Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $66. The current price is $80 per share, and there are 42 million shares outstanding. The rights offer would raise a total of $70 million. What is ..
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