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!
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $900 per set and have a variable cost of $500 per set. The company has spent $159, 000 for a marketing study that determined the company will sell 55, 000 sets per year for seven years. The marketing study also determined that the company will lose sales of 11, 000 sets of its high-priced clubs. The high-priced clubs sell at $1, 190 and have variable costs of S790. The company will also increase sales of its cheap clubs by 11, 500 sets. The cheap clubs sell for $530 and have variable costs of $275 per set. The fixed costs each year will be $9, 190, 000. The company has also spent $1, 200, 000 on research and development for the new clubs. The plant and equipment required will cost $29, 330, 000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1, 390, 000 that will be returned at the end of the project. The tax rate is 40 percent, and the cost of capital is 12 percent. Suppose you feel that the values are accurate to within only plusminus 10 percent. What are the best-case and worst-case NPVs? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Tidewater Fishing has a current beta of 1.08. The market risk premium is 7.9 percent and the risk-free rate of return is 3.2 percent. By how much will the cost of equity increase if the company expands its operations such that the company beta rises ..
A company enters into a $35 million notional principal interest rate swap. (pay fixed, receive floating at LIBOR) What is the value of the swap?
Annuity/Retirement A. If you deposited the following amount per month (letters in your last name X $80) from your paycheck from the time you graduate from school until you retire (at age 75) and your employer contributed an extra 6%, how much wealth ..
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $79,000 per year for the next two years, or you can have $68,000 per year for the next two years, along wi..
CellU, the company CompU is looking at purchasing, expected their dividend to grow at a rate of 35 percent for the next four years, then to drop to a growth rate of 15 percent for 2 more years, and then settle down to a 10 percent growth rate thereaf..
The present value of a future dollar is less than one dollar. The present value of a future dollar is more than one dollar. The present value of a future dollar is equal to one dollar. The present value of a future dollar cannot be determined.
You take out an amortized loan for $10,000. The loan is to be paid in equal installments at the end of each of the next 5 years. The interest rate is 8%. Construct an amortization schedule. You take out an amortized loan for $10,000. The loan is to b..
Over the past 4 years, large-company stocks and U.S. Treasury bills have produced the returns stated below. Given this information, 1. What are the average rates of return on large-company stocks and Treasury bills? 2. What are the standard deviation..
Joshua Industries is considering a new project with cash inflows of $478,000 for the indefinite future. Cash costs are 68 percent of the cash inflows. The initial cost of the investment is $685,000. The tax rate is 34 percent and the unlevered cost o..
The unlevered return on equity for a company is 6.55%, the company keeps a constant debt policy and the debt-to-equity ratio is 0.7. The beta of debt is equal to 0.1 and the risk free rate is 3.25%. Knowing that the market risk premium is 4.50% and t..
You have an opportunity to invest in a business venture. It requires a $250,000 investment on January 1st. You will receive $70,000 in After-Tax Cash Flows per year on December 31st for 3 years. At the end of 3 years, the project will be terminated, ..
The first sale of a company's stock occurs in the. Which of the following is not an example of an organized exchange? The primary ben efit of listing a stock to be traded on an organized exchange is that it provides investors
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