Reference no: EM132994900
Questions -
-What is the present value of a winning lottery ticket that pays you every year $5 000 for 8 years starting next year if the discount rate is 5%
-What is beta of assets of company Trico Inc, if its equity beta is 1.5, interest expense last year was 5%, its market capitalization is $10B and it has $6B of debt outstanding? Marginal tax rate that this company pays is 21%. Risk-free rate is 1% and market-risk-premium is 6%.
-What is WACC of company Trico Inc, if its cost of equity capital is 10% and [x]% of its assets are financed with debt? Marginal tax rate that this company pays is 21%. Interest expense it pays is 5%.
-Last year Brain Inc generated FCF of $1.3 M. Analysts estimate that its growth rate in the future would be stable at 3%, while it cost of capital will remain 10.3%. What is your estimate of its enterprise value?
-During the IPO of Carrots Inc, trading on the first day opened at $11, the highest price during the 1st day of trading was $16.97, and the lowest recorded price was $9.36. Trading closed on the 1st day at $15. What is the underpricing of Carrots Inc?
-Parsley Inc was an all-equity-financed firm. It pays taxes at the marginal tax rate of 21%. It has 10M shares outstanding that are trading currently at $10. It decided to issue $2M bonds and use proceeds to buy back shares. How many shares would be left in circulation?
-Parsley Inc was an all-equity-financed firm generating $3M EBIT every year. It decided to issue $8M worth of bonds and use proceeds to buy back some shares. Before issuing debt the required return on its assets was 9%, the marginal tax rate is 21% and it placed bonds with 5% coupon rate. Assume that the risk-free rate is 1% and MRP is 6%.What is its WACC after issuing debt?
-Beets Inc had 10M shares outstanding that were trading at $18. In 2020 it received a profit that was $4M higher than expected. It announced that it will use $4m to buy back shares. How many shares would it be able to repurchase?
-You purchased shares of the Birds Inc for $11 two years ago. Currently shares are trading at $14. You would like to homemade dividend ( next of any applicable taxes) of at least a $179. You capital gains tax rate is 15%, dividends are also taxed at 15%, corporate tax rate is 21%. How many shares should you sell?
-PPE at the end of 2019 was $123M. It depreciates its assets as 15% of the prior year PPE. What level of depreciation do you forecast for 2020?
-In 2019 Cucumbers Inc's CAPEX was $150M, and end of 2019 PPE balance was $372 M. It plans to grow its CAPEX at the 3% rate going forward. What can you tell me about its PPE balance at the end of 2020?
-EBITDA of Triceps Inc is $131K, and its Enterprise Value is $8 million. Biceps Inc is a competitor of Triceps Inc and has EBITDA of $50K. What is the implied Enterprise Value of Biceps Inc, if we use EV/EBITDA multiple?
-What is beta of assets of company Trico Inc, if its equity beta is 1.5, interest expense last year was 5%, its market capitalization is $10B and it has $6B of debt outstanding? Marginal tax rate that this company pays is 21%. Risk-free rate is 1% and market-risk-premium is 6%.
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What is the cost of operating the machine
: A machine costs $100,000 to purchase and has a 4 year depreciation life. What is the cost of operating the machine
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Calculate the break-even point in pieces
: Calculate the break-even point in pieces if the total fixed costs increased by 15% and selling price increased by 5%
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What is the present value of these cash flows
: You are considering a project with the following cash flows: What is the present value of these cash flows, given a 8 percent discount rate
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What the pre-acquisition of current year
: If the useful life of plant 4 years and all inventory was sold before 30/6/2014 and tax rate was 30%, what the pre-acquisition of current year are as follows
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What is the present value of a winning lottery ticket
: What is the present value of a winning lottery ticket that pays you every year $5 000 for 8 years starting next year if the discount rate is 5%
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What is the amount of net working capital
: Your firm has total assets of RM4,900, fixed assets of RM3,200, long-term debt of RM1,400. What is the amount of net working capital
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Explain the alternatives to leadership with examples
: With reference to the above situation, explain the alternatives to leadership with examples. Answer this question in not more than 400 words
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Explain audit evidence you expect to find in your review
: Comment on the matters to be considered, and explain the audit evidence you should expect to find in your review of the audit working papers
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How much more does olivia have
: Olivia invests $ 264 in a savings account that earns 8.3 % compounded annually. How much more does Olivia have after 17 years
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