What is the cash flow one year from today

Assignment Help Financial Management
Reference no: EM131615838

A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $240000 and are expected to be $290000 one year from today. Assuming that expenses are 60% of sales each year, what is the cash flow one year from today if the tax rate is 34%? Assume straight line depreciation of $25,000.

Reference no: EM131615838

Questions Cloud

Evaluate the investment from an investors perspective : You are advising an investor on whether to buy a beach house as an investment property. Evaluate the investment from an investors perspective.
What is the incremental savings of buying the valves : Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; What is the incremental savings of buying the valves?
What is the pretax cost of debt and aftertax cost of debt : Jiminy’s Cricket Farm issued a 30-year, 8 percent semiannual bond 3 years ago. What is the pretax cost of debt? What is the aftertax cost of debt?
Determine the rate of return for project : Determine the rate of return for this project. Considering the rate of return that the company normally earns on their investments,
What is the cash flow one year from today : what is the cash flow one year from today if the tax rate is 34%? Assume straight line depreciation of $25,000.
We actually paying when we buy share of stock : For what are we actually paying when we buy a share of stock?
Expected return on portfolio and expected beta on portfolio : We are going to find the expected return on the portfolio and expected beta on the portfolio.
Important for portofit no to hedge foreign exchange risk : Determine for which transaction it would have been most important for Portofit no to hedge its foreign exchange risk.
The operation of a multinational modern corporation : Describe and explain how the study and application of microeconomics influences the operation of a multinational modern corporation,

Reviews

Write a Review

Financial Management Questions & Answers

  What is current value of this stream of cash flows

Suppose that you will receive annual payments of $21,400 for a period of 22 years. The first payment will be made 7 years from now. If the interest rate is 7.50%, what is the value of the annuity in year 6, What is the current value of this stream of..

  Businesses will most benefit from depreciation tax shield

What kinds of businesses will most benefit from the depreciation tax shield?

  Demonstrat ing the potential risk from financing

Discuss the pros and cons of financing in unhedged Eurodollars instead of via Euroeuros. As you do this you must give consideration to the foreign exchange risks associated with financing in Eurodollars.

  Recapitalization-what is the stock current price per share

Tartan Industries currently has total capital equal to $8 million, has zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $3 million, and distributes 40% of its earnings as dividends. What is the stock's current price per sh..

  What is the duration of a two-year bond

What is the duration of a two-year bond that pays an annual coupon of 9 percent and whose current yield to maturity is 13 percent?

  Modify the wagner within model for the case

Modify the Wagner-Within model for the case where the warehouse is capacitated. Does the ZIO property still hold?

  Semi-annual corporate bond has a face value

A semi-annual corporate bond has a face value of $1,000, a yield to maturity of 6.9 percent, and a coupon rate of 6.5 percent.

  Piece of equiipment has depreciate

A piece of equiipment has depreciate to $3,000, but it sells for $1,000 at an auction. Which of the following consequences is MOST accurate?

  Calculate Debt ratio and equity ratio

Binomial Tree Farm’s financing includes $7 million of bank loans. Its common equity is shown in Binomial’s Annual Report at $6.87 million. It has 500,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16 per share. ..

  What is the price of the bonds-the cost of capital

Bennington Industrial Machines issued 144,000 zero coupon bonds five years ago. The bonds originally had 30 years to maturity with a yield to maturity of 7.4 percent. Interest rates have recently increased, and the bonds now have a yield to maturity ..

  What is the prepayment penalty

In 2010 a mortgage loan of $8,500,000 was issued by Associated Bank on a downtown office building. The terms of the loan were 10 years, 6.15% interest rate, interest only (no amortization). What is the prepayment penalty?

  Incoming administration stated goal of keeping jobs

Use the incoming administration’s stated goal of keeping jobs in the US and how this will impact both the labor market and goods and services.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd