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!
Y, Inc. has no debt right now. You project that this company can generate EBIT of 8 million per year for the next few years. There is no depreciation. You plan to attempt a leveraged buyout of this company. Your plan is to operate the company for three years and sell the company then. You think the company can be sold at price to EBIT ratio of 9.5 three years from now. You plan to borrow 60 million in three-year interest only loan and putting 10 millions of your own equity to buy the company. (Note that the loan is interest only and you do not plan to retire any debt before you sell the company. Your interest payment will remain the same for the three years.) The interest rate on the loan is 10% and the tax rate is 40%.
1. What will be the selling price of the company in three years (in millions)?
2. What is the cash flow to the equity investor in the first year (in millions)?
3. What is the cash flow to the equity investor in the third year in millions (the final year of the project, including sale proceeds and loan repayment)?
4. What is the rate of return to you as the equity investor (in percentage)?
Both Kim and Chris will retire at age sixty-seven, and their 401(k) plans average a 12 percent annual return. Who will have more 401(k) money at retirement?
A small business owner visits his bank to ask for a loan. how much would it be willing to lend the business owner?
Describe how gifts relate to income taxes, including determining the tax basis of gifted property. Give some examples of the tax basis of gifts to the donee when the FMV is more than the donor's basis and if FMV is less than the donor's basis.
You currently own a portfolio valued at $52,000 that has a beta of 1.16. You have another $10,000 to invest and would like to invest it in a manner such that the portfolio beta decreases to 1.15. What does the beta of the new investment have to be?
What is the annualized rate of return net of your financing cost in your housing investment for each financing program?
What is the firm's after-tax component cost of debt for purposes of calculating the WACC?
What are the main responsibilities of the board of directors? How does the Sarbanes-Oxley Act and the Dodd-Frank Act affect the board of directors at Dropbox?
Calculate this company’s cost of equity. Calculate the market value of this company's debt. Calculate the market value of this company's equity.
Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options: 1. Attend college full-time at a cost of $1,200. 2. Attend college part-time at a cost of $600 and work part-time earning $1,50..
The bonds make semi-annual payments. After the issuance, interest rates rose 2%. What is the percentage change in price of the bonds?
You are considering acquiring SunBlocker Oil common stock that you would like to hold for one year. You expect to receive both $2.50 in dividends and $37 from the sale of the stock at the end of the year. You require a minimum rate of return of 15%. ..
You decide it's time you start saving for your retirement by making equal biweekly deposits into an account that earns 8% per year compounded daily.
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