User Account

All Pages

Determining the company cost of capital

Assignment Help Finance Basics
Reference no: EM131402259

A project has an initial outlay of $3,193. It has a single payoff at the end of year 7 of $7,517. What is the profitability index (PI) of the project, if the company's cost of capital is 10.87 percent?

Round the answer to two decimal places.

Reference no: EM131402259

Questions Cloud

What does the slope of the line mean in your real-life data : Does the line fit the data? How can you tell? What does the slope of the line mean in your real-life data? How can you interpret the slope of your line?
Translate given into standard form categorical propositions : Translate the following into standard-form categorical propositions.- Bromine is extractable from seawater.
Project cash flow using net present value : The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods.
Determining the project at an annual rate : Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 9.30 percent.The initial outlay is $494,100.
Determining the company cost of capital : A project has an initial outlay of $3,193. It has a single payoff at the end of year 7 of $7,517. What is the profitability index (PI) of the project, if the company's cost of capital is 10.87 percent?
What was price elasticity of demand for domino’s pizza : The quantity of pizzas demanded soared the following week from 1 pie an hour to 100 pies an hour. What was price elasticity of demand for Domino's pizza?
Use the traditional square of opposition : Use the traditional square of opposition together with conversion, obversion, and contraposition to prove that the following immediate inferences are valid. Show each intermediate step in the deduction.
Heavy rain cost of retained earnings : Heavy Rain Corporation just paid a dividend of $2.99 per share, and the firm is expected to experience constant growth of 4.71% over the foreseeable future. The common stock is currently selling for $90.21 per share. What is Heavy Rain's cost of r..
Show each intermediate step in the deduction : Use the traditional square of opposition together with conversion, obversion, and contraposition to prove that the following immediate inferences are valid. Show each intermediate step in the deduction.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describing arbitrage opportunity

On the Milan boards, Fiat stock closed at EUR5.84 per share on Thursday, March 3, 2005. Fiat trades as an ADR on the NYSE. One underlying Fiat share equals one ADR.

  Explain how the appreciation of the australian dollar

Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security.

  Unemployment rate in a city

The unemployment rate in a city is 12%. If 9 people from the city are sampled at random, find the probability that fewer than 2 of them are unemployed. Carry your intermediate computations to at least four decimal places, and round your answer to a..

  The stages of the working capital cycle

Submit written responses to these questions. 1 In terms of cash flow, what are the stages of the working capital cycle? 2 Describe the two components of a working capital management strategy.

  A project is guaranteed to add value for a firm''s owners

A project is guaranteed to add value for a firm's owners

  Record the events in the financial statements model below

scott company is a merchandising business that was started in 2012. scott uses the perpetual inventory system. it

  Which forecasting method would you prefer to use and why

Use the regression model to predict the shipments for the years 1992 through 1999.Which forecasting method would you prefer to use and why? Note: Compute MAPE for the two forecasting methods to compare the accuracy for the period 1992-1998.

  Calculate 60 months of returns for the sampp 500 index

q1 index modelsdownload 61 months february 2009 to february 2014 of monthly data for the sampp 500 index symbol gspc.

  What was the net income of the brite partnership

Arthur Plack, a partner in the Brite Partnership, has a 30 percent share in partnership profits and losses. What was the net income of the Brite Partnership for 2013.

  Find the information to analyze expected changes

Would you, as the CFO, finance your projects as soon as possible if cost of capital was expected to drop

  Characteristics of fixed income and common stock securities

Create a matrix in which you describe characteristics of fixed income and common stock securities.

  What is the cost of common from retained earnings

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% (constant). What is the cost of common from retained earnings based on the DCF approach?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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