Calculate the interest value , Financial Management

Assignment Help:

1. Suppose a firm's tax rate is 35%. What affect would a $10 million operating expense have on this year's earnings?  What effect would it have on next year's earnings?

2. What effect would a $10 million capital expense have on this years earnings if the capital is depreciated at a rate of $2 million per year for five years? What effect would it have on next years earnings?

3. Suppose  the risk free interest rate is 4%. Having a $200 today is equivalent to having what amount in one year? Having $200 in one year is equivalent to having what amount today? Which would you prefer,$200 today or $200 in one year?

4. Your firm has a risk free investment opportunity where it can invest $160,000 today and receive $170,000 in one year, for what level of interest is this project attractive?

 

 


Related Discussions:- Calculate the interest value

Skills, what are some of the skills in asmall scale business

what are some of the skills in asmall scale business

Determine the objectives of the firm, Determine the Objectives of the Firm ...

Determine the Objectives of the Firm Objectives of the Firm - Profit Maximisation and Wealth Maximisation To put it simply, we may say that goal of any business is to max

Beta, Beta Beta is a measure of the market risk, or methodical risk, o...

Beta Beta is a measure of the market risk, or methodical risk, of a particular privacy or portfolio. Systematic risk defines any risk that influences the value of a huge numbe

Tax-backed debt, An analyst should first examine the issuers ...

An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a

Accounting framework - convention of disclosure, Accounting Framework - Con...

Accounting Framework - Convention of Disclosure The doctrine of disclosure suggested in which all accounting statements should be honest and to that end, full disclosure of al

Rectification of errors, What is rectification of errors? List and explain ...

What is rectification of errors? List and explain the stages where the errors are deducted for rectification.

Determinants of working capital, Q. Determinants of Working Capital? D...

Q. Determinants of Working Capital? Determinants of Working Capital: - The working capital necessity is determined by a large number of factors but generally the following fa

Between entries for routine business transactions, Ivan is making several e...

Ivan is making several entries into the general journal at the restaurant where he serves as an accountant. The main difference between entries for routine business transactions an

Show financial management process, Q. Show Financial Management Process? ...

Q. Show Financial Management Process? The financial management process begins with the financial planning and decisions. While implementing these decisions, the firm has to acq

Write Your Message!

Captcha
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