Calculate the interest value , Financial Management

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?

 

 

Posted Date: 2/27/2013 8:02:16 AM | Location : United States







Related Discussions:- Calculate the interest value , Assignment Help, Ask Question on Calculate the interest value , Get Answer, Expert's Help, Calculate the interest value Discussions

Write discussion on Calculate the interest value
Your posts are moderated
Related Questions
you just started your first job, and you want to buy a house within 3 years. you are currently saving for the down payment. you plan to save $5,000 the first year. You also anticip

ESSENTIAL FEATURES OF A SOUND CAPITAL MIX A sound or an appropriate Capital structure should have the following essential features : highest possible use of leverage

Q. What is Unsanctioned Expenditure? The expenditure, which is regularly incurred without the sanction of the competent authority or beyond the sanctioned limit of funds provid

An offer given by charitable trust to develop and build a facility on a 10000 sqmt of plot in a prime locality of pune where 5000 sqmt of area will be used by the trust for housing

S&P CNX 500 Here, the stocks are included as per their respective market capitalization. It includes companies which lead in their respective industry sector. They should close

Let us construct a binomial interest rate tree for a 5.5% option free bond taking Table 3 as the binomial interest rate tree. Table 1 shows the various values in

Definition of 'Working Capital Turnover': A calculation comparing the depletion of working capital to the generation of sales over a provided period. This provides some useful

i want some presentation slides of this chapter from page 570 to 580

What is a financial ratio? A financial ratio is a number that denotes the value of one financial variable that is relative to another.  Put much more simply, a financial ratio

Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi