Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight-line basis over its five-year life, and would have a zero salvage value. The estimated income from the golfing fees would be $72,000 a year with $24,000 of that amount being variable cost. The fixed cost would be $11,600. In addition, the firm anticipates an additional $14,000 in revenue from its existing facilities if the golf course is added. The project will require $3,000 of net working capital, which is recoverable at the end of the project. What is the net present value of this project at a discount rate of 12 percent and a tax rate of 34 percent?

What is the firms pretax cost of debt : Birds of a Feather have 10-year bonds outstanding that carry an annual coupon of 8 percent. The bonds mature in 7 years and are currently priced at 110 percent of face value. What is the firm's pretax cost of debt? |

What is the after tax cash flow from the sale : Consider an asset that costs $465,000 and is depreciated straight-line to zero over its six-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $120,000. If the relevant tax rate is 35 p.. |

Average does it take the firm to sell an inventory item : Bob Gibson's has sales for the year of $311,400, cost of goods sold equal to 78 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 35 percent. How many days on average does it take the firm to se.. |

Sources of cash : Which of the following are sources of cash? |

Considering adding a miniature golf course to its facility : Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight-line basis over its five-year life, and would have a zero salvage value. The estimated income from the go.. |

A project has an annual operating cash flow : A project has an annual operating cash flow of $45,000. Initially, this four-year project required $3,800 in net working capital, which is recoverable when the project ends. The firm also spent $21,500 on equipment to start the project. This equipmen.. |

Compromising or contradiction its brand ethic credentials : How should a Western Multinational Enterprise develop its business in Myanmar? To more precisely, How should a business corporation achieve its market objectives in Myanmar without compromising or contradiction its brand ethic credentials? |

Lockbox system : Hardin-Gehr Corporation (HGC) began operations 5 years ago as a small firm serving customers in the Detroit area. However, its reputation and market area grew quickly. Today HGC has customers all over the United States. Despite its broad customer bas.. |

Receivables investment-what are the days sales outstanding : McDowell Industries sells on terms of 3/10, net 25. Total sales for the year are $1,561,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 74 days after their purchases. Assume 365 days in year for .. |

## Treasury note-corporate bond and municipal bondConsider the following three bond quotes: a Treasury bond quoted at 103:29, a corporate bond quoted at 96.30, and a municipal bond quoted at 100.70. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value.. |

## Dhl and fedex have helped companies throughout the worlddhl and fedex have helped companies throughout the world succeed in the global economy by understanding the customers |

## Increased production capacity by acquiring more machinesDuring the year a company increased the production capacity by acquiring more machines. Compute company's capital expenditures during the year. |

## Compute attitude scores for consumerImagine you work for a well-known market research firm. Your supervisor has asked you to calculate numerical values for consumer attitudes using the Fishbein expectancy-value model, A = ?be. In your preliminary research for a client that manufacturer.. |

## What is the coupon rate of these bondsThe current price of a $1,000 par bond is $1,101.72 and coupons are paid semi-annually in the amount of $38.50. What is the coupon rate of these bonds? |

## Create a portfolio equally as risky as the marketYou want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 146,000 .91 Stock B $ 134,000 1.36 Stock C 1.51 Risk-free asset.. |

## Cost of capital-acceptable rate of return on an investmentRank the following from lowest to highest interest rate: cost of capital, acceptable rate of return on an investment, minimum attractive rate of return, rate of return on a safe investment. |

## Discount rate should you use to evaluate warehouse projectAs a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. What discount rate should you use to evaluate the warehouse project? |

## Multiple choice - financial management questionInvestment income resulting from the investment of both the reserves established to pay off future claims and the property and casualty company's surplus |

## Target capital structure-cost of debt and cost of equityA company has a target capital structure of 60% debt and 40% equity and the tax rate is 34%. If the cost of debt is 8%, and he cost of equity is 12%, what is WACC of the company at its target capital structure? |

## Calculate the periodic depletion for first year of operationBlack Gold Oil purchased a parcel of land containing an estimated 2 million barrels of crude oil for $850,000. Two oil wells were drilled at a cost of $340,000. The residual value of the property and equipment is $50,000. Calculate the periodic deple.. |

## Constant growth valuation-stock price is expectedHarrison Clothiers' stock currently sells for $20 a share. It just paid a dividend of $2 a share (that is, D0 = 2). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? |

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