Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Bush Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates that the project would cost $8 million today. Bush estimates that once drilled, the oil will generate positive net cash flows of $4 million a year at the end of each of the next 4 years. While the company is fairly confident about its cash flow forecast, it recognizes that if it waits 2 years, it would have more information about the local geology as well as the price of oil. Bush estimates that if it waits 2 years, the project would cost $9 million. Moreover, if it waits 2 years, there is a 90% chance that the net cash flows would be $4.2 million a year for 4 years, and there is a 10% chance that the cash flows would be $2.2 million a year for 4 years. Assume that all cash flows are discounted at 10%. >>>>>>>> If the company chooses to drill today, what is the project's net present value? (Round your answer to four decimal places. Enter your answer in millions. For example, an answer of $13,555,500 should be entered as 13.5555.)
You believe that next year there is a 30% probability of recession and 70% probability that the economy will be normal. If your stock will yield 10% in the recession and 20% in normal year, what is your expected return?
Illustrate what is the geometric return. Illustrate what is the sample standard deviation of the above returns.
The General Store has a cost of equity of 15.8 percent, a pre-tax cost of debt of 7.7 percent, and a tax rate of 32 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?
Morgan uses net present value method and has a discount rate of 12%. Will Morgan accept the project? What's the NPV?
Gary Incorporated's total common equity at the end of last year was $405,000 and its net income was $70,000. What was its ROE?
Garth's Micro Brewery, whose shares are currently trading at $40 per share, is considering acquiring Wayne's Beer Bottling Co. What is the offer value per share and offer premium?
What would happen to the money supply if the reserve requirement increased to 14 percent while noncheckable deposits to checkable deposits fell to 35 percent? Assume the other ratios remain as orgiginally stated.
Niko has buy a brand new equipment to produce its High Flight line of shoes. The equipment has an economic life of five years. The depreciation schedule for the machine is straightline with no salvage value.
At the beginning of the year, a firm has current assets of $323 and current liabilities of $227. At the end of the year, the current assets are $483 and the current liabilities are $267. What is the change in net working capital?
Select the best answer for each of the following:
As a financial planner a customer comes to you for investment advice. After meeting with him and understanding his requirements, you offer him the following two investment options:
what is the expected future spot exchange rate of the € six years from now? Use European or indirect quotes in your calculations.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd