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!
At the moment Lauren Co. keeps a constant debt-to-equity ratio equal to 1, its wacc is 13% and its cost of debt is 2.50%. Moreover the company's debt bears no systematic risk. Lauren is thinking to raise $20,000,000 to acquire the assets for a new, 7 year-long, project. The assets of this new project are as risky as the other assets of the rm. This new venture will be separated from the rest of the company's operations. As the new project is short-lived, Lauren's management think to keep a constant amount of debt equal to 30% of the initial asset value. The cost of debt for the new project is the same as the cost of the other debt issued by the company. The assets of the project will be depreciated straight line through the life of the project, and the present value of depreciation tax benets for the rst year is 709,171.50. The corporate tax rate is 26%. Assuming that the annual expected net income from the project is $14,534,000, what is the NPV of the project?
Blue Company has 12,000,000 in sales. COGS are 40% of sales. Operating costs are $1,200,000plus depreciation expense of $80,000 and interest expense $80,000. Tax rate is 40%. They have 1,000,000 shares of stock outstanding. What is their net income? ..
Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $27,000, and the company expects to sell 1,550 per year. The company currently sells 2,050 units of its existing model per year..
The Waterford Corporation just paid a dividend of $1.90 per share. The dividend is expected to grow 3% per year for the next 3 years, then 8% per year thereafter. What is the expected dividend per share for the next 5 years?
The real risk-free rate is 3.25%. Inflation is expected to be 2.5% this year, What is the yield on a 7-year Treasury note?
What is the traditional gold standard? and how does it differ from our current monetary system.
Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 0.80, and (5) its r..
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 11 percent, and the company just paid a di..
A company uses delta hedging to hedge a portfolio of long positions in put and call options on a currency.- Which of the given would give the most favorable result?
Stage 5 of "The Development Life-Cycle of Organizations" is known as
Use the following information to compute Fixed costs, Depreciation, and Operating Cash Flow:
Companies secure themselves against market fluctuations (they engage in hedging) – What are the cost? – What do they gain? Price-earnings ratio: Does this indicator fit to the theory of capital markets? You identify a good investment project – Unfort..
Selena Gomez has asked you to analyze the following stock as a possible investment. It's most recent dividend was $1.95. Selena believes that the dividend will grow at the rate of 3.25% annually for the next 3 years. Find the expected dividends. Find..
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