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!
1. The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $2,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The computer is expected to be used for 3 years and then be sold for $25,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the projects NPV?? Should they go forward and complete the project?? Why??
Macrs 3 Year Schedule
AnnualYear Depreciation1 33%2 453 154 07
2. The initial equity capital of Toys 4 Tots, Inc. consisted of 10 million shares sold at $0.25 par value per share. The company has been in business for a year and has earned net income of $500,000, paid $100,000 in dividends, and retained the balance. The stock is now selling at 15x earnings. Calculate its market value per share. Discuss what this figure represents.
Corporation stock is currently selling for $25 a share. Corporation is expected to pay a dividend of $.75 at end of this year. Corporation stock is bought today and sold for $29 after receiving the dividend.
Computation of PV and Future Annual Payments and principal amount and Compute the original principal amount
Calculate the following-Future value of $1000 for 10 years at 8% compounded, if the compounding is:
Calculation of issue value of bond considering time value of money - Find the value of an individual bond from this issue to an investor who purchases the Wilson bond on the date of issue (November 15, 2004) assuming they require an 8% return?
If opportunity cost of capital is 14%, compute the present value of business owners' equity at commencement of year.
Brandywine Homecare, a non-profit business, had revenues of 12 million dollar in 2007. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5 million.
The Hartnett Company manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat trades for $13 and has a variable expense of $8.
Find the controls and weaknesses in the controls, Misappropriation of funds, Audit procedures and to test the control system.
Baird Bros. Construction is considering the purchase of machine at a cost of $125,000. The machine is expected to generate cash flows of $20,000 per year for 10 years and can be sold at the end of ten years for $10,000.
The ABC Company has decided to build a new facility for its R&D department. The cost of the facility is estimated to be $125 million. ABC Company wants to finance this project using its traditional debt-equity ratio of 1.5.
Different products have different elasticity's. Heart medication, for example, is inelastic & corn is elastic. Determine a product and explain the price elasticity and income elasticity.
Describe a WACC and describe your reasoning within the context of the models discussed in class
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