### Calculate present value of the technology

Assignment Help Finance Basics
##### Reference no: EM1343943

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be \$218,000, received two years from today. Subsequent annual cash flows will grow at 4 percent in perpetuity.

What is the present value of the technology if the discount rate is 10 percent?

#### What is the company net income

Shelton, Inc., has sales of \$14 million, total assets of \$12 million, and total debt of \$6.7 million. Assume the profit margin is 7 percent. What is the company's net income

#### What will the quarterly payments be

Mr. Sullivan is borrowing \$2 million to expand his business. The loan will be for ten years at 12% and will be repaid in equal quarterly installments. What will the quarterl

#### What is the cost of new equity for the firm

Wheel has just paid a dividend of \$2.50 per share. The dividends are expected to grow at a constant rate of six percent per year forever. If the stock is currently selling for

#### What is the operating income for both firms

Firm A has \$10,000 in assets entirely financed with equity. Firm B also has \$10,000 in assets, but these assets are financed by \$5,000 in debt (with a 10 percent rate of int

#### Would you invest in the stock market today

Given the present economic turmoil and relatively low interest rates, and given your individual risk profile/aversion, would you invest in the stock market today? Why or why

#### Demonstrate selected perceptions

Students will choose a company of their liking and use any of the 2 (qualitative or quantitative) research and analysis methods to demonstrate selected perceptions (approved

#### Calculate the after-tax cost of debt

DebtThe firm can sell for \$980 a 10-year, \$1,000-par-value bond paying annual interest at a 10% coupon rate. A flotation cost of 3% of the par value is required in addition

#### Calculate the effective annual rate of interest

John Fleming has been shopping for a loan to finance the buy of a used car. He has found three possibilities that seem attractive and wishes to choose one with the lowest inte