Reference no: EM131772308
What is the beta of a company with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?
If a project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000, what effect does working capital have during the life of the project
How does net working capital affect the NPV of a 5-year project if working capital is expected to increase by $25,000 at end of 5 years and the firm has a 15% cost of capital?
Please consider the following information for the next 4 questions (Q17 - Q20). University Inc. is for sale and there is a price tag of $225,000. Your company, ABC, who is considering the purchase, has a beta of 1.5, the market is expected to have a 20% return and the risk-free rate is 5%. The forecasted free cash flows for the next 4 years for University are 7000 (FCF1), 22000(FCF2), 0(FCF3), and 50000 (FCF4). The company is expected to grow at 4% indefinitely after that. Your company has a debt/equity ratio of 2/3 and the applicable tax rate is 35%. ABC's cost of debt (before taxes) is 8%. What is the cost of equity for ABC company?
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Determine the eoq-average inventory
: Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.
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Examine the fraction of heads will get closer
: Explain which of the following more closely describes what it means to say that the probability of a tossed coin landing with heads up is 12.
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How does the negotiation process factor into the process
: How does the negotiation process factor into the process? What laws are important to know when negotiating contracts in a global environment?
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Discuss irs is telling me i have to pay tax on that money
: Now the IRS is telling me I have to pay tax on that money. I am able to repay it as agreed. I am not in default on the loan
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What is the cost of equity for abc company
: Your company has a debt/equity ratio of 2/3 and the applicable tax rate is 35%. ABC's cost of debt (before taxes) is 8%.
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Why you feel each event could be important to your readers
: Describing why you feel each event could be important to your readers. After writing your sentences, decide which of these topics interests you enough.
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How many tickets of each kind have been sold
: It has sold 114 more $20 tickets than $10 tickets. The total sales are $66,000. How Many tickets of each kind have been sold
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Create a tuition index for each year
: Find out what the tuition and fees were for your school for the previous 4 years and the current year. Using the cost 5 years ago as the base.
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What is the wacc for a firm
: What is the WACC for a firm with 40% debt, 20% preferred stock, and 40% equity if the respective costs for these components are 6% after tax
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