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!
Targaryen Aeronautics is exploring the possibility of making a significant purchase of a new alternative aircraft technology to add to their current fleet - a dragon. The purchase price of the dragon is expected to be $4,000,000 with additional shipping and installation expenses of $1,000,000. Maintenance of the dragon will require an increase in working capital of $2,000,000. The dragon is expected to generate additional annual sales of $2,500,000 over the next four years, additional operating costs of $230,000 and depreciation each year according to the MACRS schedule of 33%, 45%, 15%, and 7% respectively. Targaryen's tax rate is 40% and their required rate of return is 9.2%. Targaryen expects to be able to sell the dragon at the end of the project's life for 20% of the original purchase price of the dragon, and they also expect to be able to recoup the original additional investment in working capital.
The initial investment required for the dragon will be:
a. $3,800,000
b. $4,200,000
c. $4,800,000
d. $5,000,000
e. $5,200,000
A stock had returns of 14 percent, 26 percent, and 8 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 43.51 percent in any one given year?
Explain your reasoning. Be sure to consider how the inflation rate would affect the return - A leader in your firm has been studying the foreign exchange market for a number of years and believes that she can predict several of the foreign currency..
On July 1, 2012, Watson Company received a $20,000 promissory note for services from Jeffs Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2013. Assets decrease and owners' equity decr..
You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call?
What is the yield to maturity on a Treasury STRIPS with 11 years to maturity and a quoted price of 63.695?
A bond that pays interest annually yields a rate of return of 10.00 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?
you have been hired in the finance department at a large metropolitan for-profit hospital. your duties are very
What factors contribute to an expansion of the commercial paper market and what factors cause a contraction in the commercial paper market?
1 the type of risk that can be diversified away is called .a unsystematic riskb systematic riskc nondiversifiable riskd
Giant Enterprises’ stock has a required return of 14.8%. The company, which plans to pay a dividend of $2.60 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over the..
A company is expected to pay their first annual dividend three years from now. That payment will be $0.50 a share. Starting in year four, the company will increase the dividend by 4% per year. The required return is 12%. What is the estimated value o..
the primary financial goal of a for-profit corporation is to make a profit to maximize shareholder wealth.choosing any
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