Compute npv depreciation using simplified straight-line

Assignment Help Finance Basics
Reference no: EM1310778

Compute NPV Depreciation using simplified straight-line method and cost of new preferred stock.

1. The Acu Punct Corp is considering the purchase of a new machine with an initial outlay of $4,500 and expected cash flows in year 1-4 of $2,200 per year. The risk-adjusted discount rate for the firm is 12% and the risk-free rate is 5%. Compute the net present value of this project.

2. A firm purchased an asset with a 5 year life for $90,000,and it cost $10,000 for shipping and installation. Using the simplified straight-line method, what is the annual depreciation?

3. X Corporation is trying to determine the appropriate cost of preferred stock to use in determining the firm's cost of capital. This firm's preferred stock is currently selling for $36, and pays a perpetual annual dividend of $2.60 per share. Underwriters of a new issue of preferred stock would charge $6 per share in flotation costs. The firm's tax rate 30%. Compute the cost of new preferred stock XYZ

Reference no: EM1310778

Questions Cloud

Aging free from negative stereotypes : Aging Free From Negative Stereotypes: Successful Memory in China and Among the American Deaf
Four methods to provide data backup : What are the four methods used by the servers in order to provide the data backup, decrease the response time, and decrease the network and the server access time?
Evaluate the amount of prepaid insurance : Evaluate the amount of prepaid insurance that should be reported on the 31 st  of August balance sheet with respect to this policy.
Computing total cost at economic order quantity : Determine Tech Products’ economic order quantity (EOQ) for motors? Compute its total cost at the EOQ?
Compute npv depreciation using simplified straight-line : Compute NPV Depreciation using simplified straight-line method and cost of new preferred stock.
Levels of performance and commitment : This paper asks you to employ the course topics to understand explain why some of the coworkers encompass higher or lower levels of performance and commitment.
Data planning and modelling– enterprise modelling : Write down the major differences between the two approaches to the data planning and modelling– enterprise modelling and the view integration?
Inventory valuation and cost of goods sold : Difference between ending inventory valuation and cost of goods sold - compute ending inventory and cost of goods sold under each method, and then compare results.
Health administration requires the firm to install equipment : The Occupational Safety as well as Health Administration requires the firm to install new ventilating equipment in its plant, Theory Question regarding specific factors affecting firm's breakeven point

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Determining max annual withdrawal

If upon retirement in twenty years he plans to invest= $800,000 in fund which earns 4%, determine max annual withdrawal he can make over following fifteen years?

  What do you predict net income and revenue to be next year

How would you measure the corporation's revenue performance over the last few years( for example, is it incresing, declining, stagent)? what are the reasons for your assessment? What factors will have the greatest influence on the evaluation o..

  Case analysis: outdoor sports inc

Calculate the Du Pont ratio analysis

  Violet isaacsongave jeanne collection of coin

One month before she died on April 14, 2002, Violet Isaacson (Jeanne's mother) gave Jeanne collection of coin.

  Computing firm-s value and its ebitda multiple

Compute Soundbytes’ enterprise value and its EBITDA multiple. Compute Hagar Enterprise’s EBITDA.

  Prepare a 20x8 consolidated income statement

Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements.  Prepare a 20X8 consolidated income statement for Insure using ..

  Determining the total book value of assets

Fixed assets can be sold today for= $23,300. Determine the total book value of assets of Alaris?

  Computing expected return on equity with capital structure

Backwards has $364 million of debt outstanding at the interest rate of 11% and $674 million of equity (market value) outstanding. Compute expected return on equity with this capital structure?

  Compute yearly interest income of every bond on basis

Compute yearly interest income of every bond on basis of its coupon rate also number of bonds which Sam could buy with his= $20000.

  Explaining parent-subsidiary relationship between companies

Parent-Subsidiary relationship between companies develops when one company owns greater than 50% of another company voting stock.

  Describe tax liability on dividend income

Describe tax liability on dividend income, interest income and interest on loan paid and Excluding the items noted above, Redbird's taxable income is $500,000

  Require to cash in at the end of ten years

you will require to cash in at the end of ten years. suppose your brother is trustworthy and both investments carry similar risk.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd