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 $745 per set and have a variable cost of $375 per set. The company has spent $165,000 for a marketing study that determined the company will sell 76,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,000 sets per year of its high-priced clubs. The high-priced clubs sell at $1,350 and have variable costs of $690. The company will also increase sales of its cheap clubs by 12,500 sets per year. The cheap clubs sell for $355 and have variable costs of $140 per set. The fixed costs each year will be $11,350,000. The company has also spent $1,150,000 on research and development for the new clubs. The plant and equipment required will cost $25,550,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,650,000 that will be returned at the end of the project. The tax rate is 30 percent, and the cost of capital is 14 percent. Required: Calculate the Time 0 cash flow. (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest whole number (e.g., 32).) Time 0 cash flow $ Required: Construct the pro forma income statement. (Do not round intermediate calculations. Round your answers to the nearest whole number (e.g., 32).) Sales $ Variable costs Fixed costs Depreciation EBIT Taxes Net income $ Calculate the OCF. (Do not round intermediate calculations. Round your answers to the nearest whole number (e.g., 32).) OCF $ Calculate the payback period, the NPV, and the IRR. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period years Net present value $ Internal rate of return
Calculate the next three annual dividends for the common stock of Alpha Beta Corporation. The last annual dividend was Do = $1.24, but is projected to continue growing every year by g = 5.5% and investors in this stock expect a return of Ri = 9.00 pe..
You’ve worked out a line of credit arrangement that allows you to borrow up to $45 million at any time. The interest rate is .49 percent per month. In addition, 6 percent of the amount that you borrow must be deposited in a non-interest-bearing accou..
The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in Argentina is 10 percent and U.S. inflation is 4 percent. If purchasing power parity holds, at year-end the exchange rate should be approximately ______________ doll..
JJ Industries will pay a regular dividend of $1.70 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 12 percent, and the current share price is $62, what..
Find the expected return for the portfolio if she invests 75% of her funds in Stock A.
A bond that matures in 15 years has a $1,00 par value. The annual coupon interest rate is 8% and the market's required yield to maturity on a comparable-risk bond is 16 percent. a) What could be the value of this bond if it is paid interest annually?..
What is the future worth (in Year 8) of $20,000 deposited at the end of Year 3 plus $20,000 deposited at the end of Year 5, and $20,000 deposited at the end of Year 8 at an interest rate of 6% per year
Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $74 each year and expects these to grow at a rate of 0.05 each year. The upfront project costs are $559 and Ford's weighted average cost of capital is 0.07. If the i..
A perpetual bond pays a coupon of $25 per year. If in year 1 this bond sells for $200, what is its yield to maturity?
What is the intrinsic (min.) value of this warrant? What is the speculative premium on this warrant?
A7X, Inc., has an average collection period of 22 days. Its average daily investment in receivables is $81,000. What is the receivables turnover? What are annual credit sales?
You have just received an endowment and placed this money in a savings account at an annual rate of 19.01 percent. You are going to withdraw the following cash flows for the next five years. End of year 1. $1406 2. $9693 3. $2460 4. $2265 5. $846 How..
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