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!
Daniel Kaffe, CFO of Kendrick Enterprises, is evaluating a 10-year, 5.1 percent loan with gross proceeds of $5,930,000. The interest payments on the loan will be made annually. Flotation costs are estimated to be 1.2 percent of gross proceeds and will be amortized using a straight-line schedule over the 10-year life of the loan. The company has a tax rate of 35 percent, and the loan will not increase the risk of financial distress for the company.
a. Calculate the net present value of the loan excluding flotation costs. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Net present value $______
b. Calculate the net present value of the loan including flotation costs. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Net present value $_______
A narrative summary of each of the financial statements is as follows: Can you give me an outline of the important things that need to be included in the narrative summary of each of these statements in the annual report?
Cash Management. A firm maintains a separate account for cash disbursements. Total disbursements are $100,000 per month, spread evenly over the month. Administrative and transaction costs of transferring cash to the disbursement account are $10 per t..
The shareholders' equity of Green Corporation includes $480,000 of $1 par common stock and $590,000 par value of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $69,000 in 2013 after paying $39,000 cash divid..
Based on the following information determine the covariance and correlation between the returns of the two stocks.
Birch Company normally produces and sells 46,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component part in the automotive industry. Assuming that the strikes continue for two months, what is the impact on income by closin..
The risk free rate is 5% and the expected rate of return on the market is 12%. According to the CAPM, is Duff fairly priced, underpriced, or overpriced? Explain
The S&P 500 just closed at 2500 (T=0) and has continuously compounded annual dividend yield of 2.0%. you will need to calculate the futures price of the index.
Jonas Manufacturing makes only one product which sells for $5 each. At a production and sales level of 10,000 units their total variable costs are $20,000 and total fixed costs are $18,000. If they increase their production and sales to 12,000 units,..
A couple borrows $200,000 for a mortgage that requires fixed monthly payments over 30 consecutive years.
What is the required rate of return (yield) on the preferred stock?
The congress company produces playing cards. Variable costs are 80% of sales. Fixed Costs other than depreciations are $150,000. Machinery cost $2million and is depreciated straight line over 10 years to a zero salvage value. Calculate the NPV break-..
The importance of a balanced capital structure and the problems which are associated with high levels of gearing.
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