What is the firms net income after four years

Assignment Help Financial Management
Reference no: EM131020289

Manufic has announced this year's net income as $832,500. It expects its net earnings to grow at a rate of 15 percent per year for the next two years, before dropping to 12 percent for each of the following two years. What is the firm's net income after four years? (Round to the nearest dollar.)

Reference no: EM131020289

Questions Cloud

Floating rate cds differ from regular cds : Floating rate CDs differ from regular CDs in that: A. they have longer maturity. B. they differ substantially in default risk. C. they are not taxed. D. they have coupons that are frequently reset. E. All of these describe differences.
Adding a robotic paint sprayer to its production line : The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer would not change revenues, but it is expected to save the firm $544,450.00 per year in before-tax operating costs, mainly labor. Campbell's margina..
Estimate be for the new division’s cost of capital : Harry Davis is interested in establishing a new division that will focus primarily on developing new Internet-based projects. what would your estimate be for the new division’s cost of capital?
Loan balance exceeds the value of the home : You are 62 years old, and your house appraises for $450,000. A bank is willing to give you a reverse mortgage at 50% LTV with a 6% fixed contract rate. You choose an option to receive equal monthly payments over a period of 10 years. If you choose to..
What is the firms net income after four years : Manufic has announced this year's net income as $832,500. It expects its net earnings to grow at a rate of 15 percent per year for the next two years, before dropping to 12 percent for each of the following two years. What is the firm's net income af..
What is the payback period : A project requires an investment of $500 today, and will generate CF from Assets equal to $200 each year for ten years (first $200 to be received exactly one year from today). The annual rate is 12%. What is the payback period? What is the discounted..
Assume straight-line depreciation on both machines : Assess the relevant cash flows used in forming a capital budgeting decision model. For this assignment, focus upon a replacement problem. Assume straight-line depreciation on both machines.
Most corporate bonds : Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon r..
Consider a mining project in which there are costs : Consider a mining project in which there are costs to open the mine and to seal the mine at the end of the project. Consider the following cash flows for the project: -$3,787,879 initially, $8,712,121 one year from today, and -$5,000,000 two years fr..

Reviews

Write a Review

Financial Management Questions & Answers

  Estimate of the net present value

An analysis of what happens to the estimate of the net present value when you examine a number of different likely situations is called _____

  What is the companys new required rate of return

Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free r..

  What would her monthly payment be

Oprah Winfrey has closed on a 42-acre estate near Santa Barbara, California, for $53,000,000. If Oprah puts 20% down and finances at 7% for 30 years, what would her monthly payment be?

  What is the projected net present value of project

Antonio's is analyzing a project with an initial cost of $44,000 and cash inflows of $26,000 a year for 2 years. This project is an extension of the firm's current operations and thus is equally as risky as the current firm. The firm uses only debt a..

  What is the average accounting return

A project has an initial cost of $62,000 and a four year life. The company uses straight line depreciation to a book value of zero over the life of the project. The projected net income from the project is $2,400, $4,100, $4,700, and $4,500 a year fo..

  Calculate the t-bills quoted yield

Calculate the bond equivalent yield and effective annual return on a jumbo CD that is 115 days from maturity and has a quoted nominal yield of 6.56 percent.

  Operating cash flow financial staff of cairn communication

Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service:

  Determine the amount of safety stock and Reorder point

Determine the following Amount of safety stock, in units, Average inventory and annual carrying costs and Reorder point.

  Security beta expected return-what is the risk-free rate

Suppose you observe the following situation: Security Beta Expected Return Peat Co. 1.20 11.2 Re-Peat Co. 1.00 9.6 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?

  Setting the price on new outpatient service

Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service.  What per visit price must be set for the service to break even? To earn an annual profit of $100,000? Repeat Part a, but assume that the variable co..

  What were flotation costs as a fraction of funds raised

Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $8 per share. The underwriting spread was $.6 a share. The price of the stock closed at $12 per share at the end of the first day of trading...

  Expected interest rate-what is the yield

The real risk-free rate is 3.35%. Inflation is expected to be 2.85% this year, 3.75% next year, and then 3.05% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year..

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