How much money must the company deposit

Assignment Help Financial Management

Reference no: EM131445268

Starlite industrie will need $2.2 million 4.5 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings for his purpose. The account pays 3.6 percent interest, coumpounded annually. how much money must the company deposit today to fuly fund the equipment purchase?

Reference no: EM131445268

Questions Cloud

The power of rippling effect of adding money : The power of a "rippling effect" of adding money to the financial system is measured by the ________. Which of the following will decrease the present value of a perpetuity, other things equal?

Project npv-widget manufacturer currently produces : Project NPV A widget manufacturer currently produces 200,000 units a year. It buys widget lids from an outside supplier at a price of $2 a lid. The plant manager believes that it would be cheaper to make these lids rather than buy them. Direct produc..

Find the after-tax return to a corporation : Find the after-tax return to a corporation that buys a share of preferred stock at $49, sells it at year-end at $49, and receives a $4 year-end dividend. The firm is in the 30% tax bracket.

Calculate the company weighted average cost of capital : Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. Calculate the company's weighted average cost of capital.

How much money must the company deposit : Starlite industrie will need $2.2 million 4.5 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings for his purpose. The account pays 3.6 percent interest, coumpounded annually. how mu..

Calculate the annual cash flows from fixed-payment annuity : Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $2 million and the annuity earns a guaranteed annual return of 10 percent.

What would be the exhange rate between the dollar and pound : Undre the gold standard , the price of an ounce of gold in US odallars was $20.67, will the price of that same ounce in British pounds was 3.7683. What would be the exhange rate between the dollar and the pound if the US doallar price had been $42.00..

What would be the equivalent taxable yield of this bond : A municipal bond carries a coupon rate of 6.00% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 38% tax bracket?

What should the firm do about dividend policy : The corporation has been wildly successful, in this, the third year of operation. While operating in the social media advertising arena can be risky, the corporation has been able through strategic alliances and timely hires, to stay ahead of the pro..

User Account

All Pages