What would their net cash flows from investing activities be

Assignment Help Financial Management
Reference no: EM131070454

QV purchased $3.0 million in new manufacturing equipment, resulting in an increase in their monthly depreciation expense of $170,000. They also sold some old equipment for $65,000, and sold $500,000 worth of common stock. Given this information, what would their net cash flows from investing activities be?

Reference no: EM131070454

Questions Cloud

Further assume that the returns are normally distributed : Suppose the average return on an asset is 11.5 percent and the standard deviation is 21.1 percent. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to determine the probability that in any given year you wi..
What is the amount of current liabilities : Tiny Venture has total assets of $800, net fixed assets of $500, long term debt of $80, and stockholders' equity of $400. What is the amount of Tiny Venture's current assets? What is the amount of Tiny Venture's current liabilities?
How many years do these bonds have left until they mature : Backwater Corp. has 9 percent coupon bonds making annual payments with a YTM of 8.3 percent. The current yield on these bonds is 8.65 percent. How many years do these bonds have left until they mature?
Net cash flows from financing activities be : QV borrowed an additional $1,500,000, but paid down existing loans by $250,000. They made interest payments of $45,00, sold $200,000 worth of stock, added $1.75 million to retained earnings, and paid out dividends of $200,000. Given this information,..
What would their net cash flows from investing activities be : QV purchased $3.0 million in new manufacturing equipment, resulting in an increase in their monthly depreciation expense of $170,000. They also sold some old equipment for $65,000, and sold $500,000 worth of common stock. Given this information, what..
Net cash flows from operating activities be : Questionable Venture, Inc. had net income of $1.75 million in the fourth quarter of 2013. They purchased $3.0 million in new manufacturing equipment, sold some old equipment for $85,000, their inventories fell by $110,000, their interest payments inc..
What is its after-tax cost of debt : Dunkin’ Donuts’ bonds currently sell for $1171.19 (for a $1K face-value bond). The bonds’ coupon rate is 10% and the bonds mature in 15 years. Coupons are annual. What is the yield to maturity for this bond? what is the before-tax cost of debt for Du..

Reviews

Write a Review

Financial Management Questions & Answers

  Capital schedule represent a series of average costs

In what sense does the marginal cost of capital schedule represent a series of average costs? Please explain as thorough as possible.

  Insurance company was disappointed

Joe and Anne own a dog, and that dog is wicked as all get out. It chased down a nun and an orphan who were going about their business and proceeded to maul them both. Joe and Anne have a standard homeowners insurance policy with liability limits of $..

  The following capital structure is taken from bata boots co

the following capital structure is taken from bata boots co. balance sheet for the fiscal year ended april 30 2005.

  Liquidit and profitability

Liquidit. Profitability Company ratio values and industry average for the most recent year.

  After-tax cash flows for the next ten years

A large cow barn will cost $150,000 to build today and you figure it will add $18,000 per year to your after-tax cash flows for the next ten years. If the salvage value of the building is 50% after ten years and the cost of capital is 7%, what is the..

  Lower weighted average cost of capital

In general, the cost of debt capital is lower than the cost of equity capital. For this reason, it might be expected that firms with high debt ratios would have a lower weighted average cost of capital. Explain at least one reason why this is not the..

  Money stays extremely liquid

Robert and Cora might receive a settlement in the amount of $800,000. Robert and Cora want to know how to make sure their money is protected from a bank failure and that the money stays extremely liquid. Please help educate Robert and Cora on the FDI..

  Emergence of enterprise resource planning technology

Is the following statement true? The emergence of enterprise resource planning technology is essential to large multinational corporations and to the continued development of international business. Explain your response and give an appropriate examp..

  What is the firms breakeven point

Flying Bat Corporation is currently planning to start production of boat navigation systems. The firms selling price per unit is $410.58. Variable costs per unit $258.41. Interest expense is running at $50,000 per year, while fixed costs total $422,7..

  How much can she borrow in a home equity loan

Acme Home Lending offers home equity loans up to 75% of the home value for its customers. If Sally Johnson has a home valued at $270,000 and a current mortgage of $81,000, how much can she borrow in a home equity loan from Acme?

  Common stock value-zero growth-personal finance problem

Kelsey Drums, Inc., is a well-established supplier of fine percussion instruments to orchestras all over the United States. The company's class A common stock has paid a dividend of $5 per share per year for the last 15 years. Management expects to c..

  What is the interest rate that the expectations theory

If the real interest rate in the economy is 3% and the expected inflation is 2% per year over a five year period, assuming the maturity risk premium is 0, what is the interest rate that the expectations theory would predict for a five year Treasury n..

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