What will be after-tax cash flow of this sale

Assignment Help Financial Management
Reference no: EM131492608

Suppose you sell a fixed asset for $129,000 when its book value is $163,000. If your compant's marginal tax rate is 15%, what will be the effect on cash flows of this sale (i.e , what will be after-tax cash flow of this sale)?

Reference no: EM131492608

Questions Cloud

Accrued interest due to seller from the buyer at settlement : Calculate the accrued interest due to the seller from the buyer at settlement. Calculate the dirty price of this transaction.
Working capital management : "Working Capital Management"-Examine the key reasons why a business may not want to hold too much or too little working capital.
Calculate how much money a prospective homeowner : Calculate how much money a prospective homeowner would need for closing costs on a house that costs $105,000.
What are portfolio weights of each stock : what are the portfolio weights of each stock?
What will be after-tax cash flow of this sale : what will be the effect on cash flows of this sale (i.e , what will be after-tax cash flow of this sale)?
Calculator to compute monthly payments for vehicle : calculator to compute monthly payments for vehicle that costs $17,500 if you financed entire purchase over four years at annual interest rate of 7.75 percent.
What is your estimate of the current value of stock price : What is your estimate of the current value of the stock price using a two-stage DDM
What would annual yield to maturity be on bond : What would the annual yield to maturity be on the bond if you purchased the bond today?
How much is this stock worth : Suppose you buy a stock that will pay an annual dividend next year of $5. How much is this stock worth?

Reviews

Write a Review

Financial Management Questions & Answers

  Bonds on the market making annual payments

Essary Enterprises has bonds on the market making annual payments, with eight years to maturitty, a par value of $1,000 and selling for $948. At this price, the bonds yield 5.9 percent. What must the coupon rate be on the bonds?

  Pure expectations and liquidity premium theories

Plot and identify each point under both the Pure Expectations and Liquidity Premium theories

  What is the current share price for the stock

Universal Laser, Inc., just paid a dividend of $3.55 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a return of 14 percent on the stock for the first three years, a rate of ..

  How long will it take to pay off the mortgage

Your friend tells you he has a very simple trick for taking one-third off the time it takes to repay your mortgage: how long will it take to pay off mortage

  Foregone future value of this reduced saving

Susan plans to reduce her savings (that is, she will spend more) by $70 a month. What would be the foregone future value of this reduced saving over the next 10 years?

  Which of the items are relevant for projects analysis

Blueberry Electronics is exploring the possibility of producing a new handheld device that will serve both as a basic PC, with Internet access, and as a cell phone. Which of the given items are relevant for project's analysis?

  Internal rate of return adolphus logistics

Internal Rate of Return Adolphus Logistics has a weighted average cost of capital of 10 percent. The company is considering a project with the following expected cash flows: Year Project Cash Flow 0 –$612 million 1 269 million 2 215 million 3 207 mil..

  What is the yield on risk free securities

Assume that interest rate parity holds. In both the spot market and the 90 day forward market, 1 Japanese yen equals 0.0086 dollar. In Japan 90 day risk free securities yield 4.6%. What is the yield on 90 day risk free securities in the United States..

  Van buren currently expects to pay a year-end dividend

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 4% and the market risk premium is 8%. Van Buren currently expects to pay a year-end dividend of $1.85 a share (D1 = $1.85). Van Buren..

  All hedging relationships must be highly effective

All hedging relationships must be “highly effective” to qualify for special financial treatment. What is meant by the term highly effective and why is its measurement important for financial managers?

  How is liquidity a source of risk

How is liquidity a source of risk? Explain how the stockholders of a company hold an implicit put option written by the creditors ?

  Calculate the time zero cash flow for this project

Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $135,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $590,000 p..

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