What is the profit margin if the tax rate

Assignment Help Financial Management
Reference no: EM131989681

1. Harford Undercover LLC has annual sales of 3,550,000. Earnings before interest and taxes is equal to 21 percent of sales. For the period, the firm paid $117,900 in interest. What is the profit margin if the tax rate is 38 percent?

2. You find a home that you can purchase for $295,000. You make a 20 percent down-payment on the home. You find a savings bank that will write a loan for 30 years at a 4.5 percent annual rate with monthly payments that include interest and principal. Calculate the monthly payment.

3. Assume you are to receive a 25-year annuity with annual payments of $100. The first payment will be received at the end of Year 1, and the last payment will be received at the end of year 25. You will invest each payment in an account that pays 5.5 percent. What will be the value in your account at the end of Year 25? End of Year 30?

Reference no: EM131989681

Questions Cloud

What is the outstanding balance immediately : Each succeeding monthly payment will be 3% lower than the prior one. What is the outstanding balance immediately after the 30th payment is made?
What is the firm total corporate value in millions : ABS Corporation’s free cash flow during the just-ended year (t=0) was $300 million, what is the firm’s total corporate value, in millions?
Budget forecast to represent annualized cost of shaker table : what annual value should ACE put in its budget forecast to represent the annualized cost of the shaker table (nearest dollar)?
What are possible problems to achieve successful acquisition : What are the possible problems to achieve a successful acquisition?
What is the profit margin if the tax rate : For the period, the firm paid $117,900 in interest. What is the profit margin if the tax rate is 38 percent?
You need to set coupon rate of nothing : If you want to issue new? 10-year coupon bonds at? par, what coupon rate do you need to? set? You need to set a coupon rate of nothing
What is the yield today for two-year treasury securities : what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average.
What are total shortage costs : The chairs are sold out before they are restocked. What are the total shortage costs?
What is the price of the treasury bond : What is the price (expressed as percentage of the face value) of the treasury bond? What is the credit spread on the BBB bonds?

Reviews

Write a Review

Financial Management Questions & Answers

  Change in bond price bond

A 5.55 percent coupon bond with ten years left to maturity is priced to offer a 7.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent. What is the change in price the bond will experience in dollars?

  Property disposition capital gains-taxation of gross income

Bob’s personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of $6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for..

  Find the sustainable and internal growth rates for a firm

Find the sustainable and internal growth rates for a firm with the following ratios:

  What is the projects year zero net cash flow

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,040,000 in annual sale..

  Make the investment beginning next year

Stephanie Watson plans to make the following investment beginning next year. How much will Stephanie have at the end of the seven years?

  Capital structure includes bonds and preferred stock

MNO's capital structure includes bonds, preferred stock, and common stock. what is MNO's weighted average cost of capital?

  What is addition to retained earnings-operating cash flow

Daniel’s Market has sales of $36,000 costs of $28,000, depreciation expense of $3,000 and interest expense of $1,500. If the tax rate is 30 percent, what is the operating cash flow, OCF? Andersen’s Nursery has sales of $318,400, costs of $199,400, de..

  What portion of the feasible set is efficient

Asset A has an expected return of 10% and standard deviation of 20%. Asset B has an expected return of 16% and a standard deviation of 40%. The correlation between A and B is 0.35. Portfolio C is composed of 30% asset A and 70% asset B. Now add an il..

  What is the effective annual interest rate on loan

What is the APR of the loan? What is the effective annual interest rate on the loan?

  The same bond has clean price

Yesterday, a bond had a clean price of $927.40. Today, the same bond has a clean price of $933.80. Based on this information, you know that:

  Calculate the npv of the project using the wacc method

What is the net present value of the project if it is all equity financed? Calculate the NPV of the project using the WACC method,

  Prepare cash budget for the company first year of operations

Prepare a cash budget for the company’s first year of operations based on the sales calculated in item.

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