What is the annualized percentage all-in cost

Assignment Help Financial Management

Reference no: EM131317050

Nakatomi Toyota. Nakatomi Toyota buys its cars from Toyota Motors (U.S.), and sells them to U.S. customers. One of its customers is EcoHire, a car rental firm that buys cars from Nakatomi Toyota at a wholesale price. Final payment is due to Nakatomi Toyota in six months. EcoHire has bought $200,000 worth of cars from Nakatomi, with a cash down payment of $40,000 and the balance due in six months without any interest charged as a sales incentive. Nakatomi Toyota will have the EcoHIre receivable accepted by Alliance Acceptance for a 2% fee, and then sell it at a 3% per annum discount to Wells Fargo Bank. A. What is the annualized percentage all-in cost to Nakatomi Toyota? B. What are nakatomi’s net cash proceeds, including the cash down payment?

Reference no: EM131317050

Questions Cloud

Most important factors in creating business valuation : Often business owners are very disappointed when someone does a valuation of their business. The business owners will say things like "I haven't taken a paycheck in five years" and "I work seven days a week to keep this business running." what are t..

The remainder funded by common stock : Walker Corp. has a target capital structure of 27% long-term debt, 7% preferred stock, and the remainder funded by common stock. The yield on its 4% coupon bonds is 2.7%. The preferred stock is priced at $55 and pays $6.44 in dividends per share annu..

The estimated risk premium between company debt and equity : Panem Corp.'s most recent bond issue has a coupon rate of 4.46% and is currently priced at par. The estimated risk premium between the company's debt and equity is 3.78%. The estimated cost of equity, Re, for Panem Corp. is %.

Analysts estimates of the beta : You have discovered three analysts' estimates of the Beta for Kuschel Corp.: 1.74, 1.51, and 1.64. The Treasury Bond rate is estimated at 4%. The Market Risk Premium is estimated to be 4%. The estimated cost of equity, Re, for Kuschel Corp. is %.

What is the annualized percentage all-in cost : Nakatomi Toyota. Nakatomi Toyota buys its cars from Toyota Motors (U.S.), and sells them to U.S. customers. One of its customers is EcoHire, a car rental firm that buys cars from Nakatomi Toyota at a wholesale price. What is the annualized percentage..

The stock is currently trading : The most recent dividend for Terminus Corp. was $2.39. The dividend is expected to grow by 6% per year indefinitely. The stock is currently trading for $34 per share. The estimated cost of equity, Re, is %.

Nominal cost of preferred equity adjusted for flotation cost : An issue of preferred stock pays a $1.42 dividend each quarter, and is currently trading at $94 per share. Flotation costs are estimated to be $0.86 per share. The nominal cost of preferred equity (Rp) adjusted for flotation costs, is %.

Find the yield rate sojourner earned on her investment : Seth borrows $1000 at 5% for 20 years from Sojourner. After 10 years, Sojourner sells the rights to future payments to Johnathon for $P. Find P, if Johnathon plans to accumulate a sinking fund at 4% to replace P and desires a yield of 6%. Find the yi..

What is the crossover rate for these two projects : Seether, Inc., has the following two mutually exclusive projects available. What is the crossover rate for these two projects?

User Account

All Pages