Alternative to address the planned net new financing need

Assignment Help Financial Management

Reference no: EM131924032

1. A firm projects net income of $100,000, dividends of $30,000, and net new financing of $20,000 next year. Which of the following is not an alternative to address the planned net new financing need?

A) all of these answers are acceptable alternatives

B) borrowing $20,000 in long-term debt

C) issuing $20,000 in preferred stock

D) reducing dividends to $10,000

E) issuing $20,000 in common stock

2. Determine the IRR on the following? projects:

a. An initial outlay of ?$13,000 resulting in a single free cash flow of ?$16,822 after 8 years

b. An initial outlay of $13,000 resulting in a single free cash flow of ?$54,023 after 14 years

c. An initial outlay of $13,000 resulting in a single free cash flow of $107,224 after 21 years

d. An initial outlay of $13,000 resulting in a single free cash flow of $13,653 after 3 years

Reference no: EM131924032

Questions Cloud

Building new factory to produce aluminum baseball bats : Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats.

What is the company current stock price-expected stock price : What is the company's current stock price? What is expected stock price in 5 years? What is expected stock price in 8 years?

What is the cost of capital of project : What is the cost of capital of this project? Can you explain in details to Shelley, the president, how your team comes up with the cost of capital for this proj

What is the project payback period and project NPV : What is the project's payback period? What is the project's NPV. What is the project's PI. What is the project's IRR.

Alternative to address the planned net new financing need : Which of the following is not an alternative to address the planned net new financing need?

Implications for stakeholder based on agent course of action : What are the alternative courses of action for an agent facing this dilemma and the implications for stakeholders based on the agent’s course of action?

How much does she need to borrow to purchase yacht : Beth Klemkosky bought a yacht for $80,000 and paid $12,000 down, how much does she need to borrow to purchase the yacht?

Net operating income provided by new bottling machine : What is the annual incremental net operating income provided by the new bottling machine?

What is yield to maturity of par bond : What is the yield to maturity of the par bond? If you expect rates to fall substantially in the next two years, which bond would you prefer to hold?

User Account

All Pages