Middlefield Motors is evaluating project Z. The project would require an initial investment of 55,000 dollars that would be depreciated to 10,500 dollars over 7 years using straight-line depreciation. The project is expected to have operating cash flows of 18,500 dollars per year forever. Middlefield Motors expects the project to have an after-tax terminal value of 373,000 dollars in 4 years. The tax rate is 30 percent. What is (X+Y)/Z if X is the project’s relevant expected cash flow in year 4, Y is the project’s relevant expected cash flow in year 5, and Z is the project’s relevant expected cash flow in year 3? Round your answer to 2 decimal places (for example, 2.89, 0.70, or 1.00).

## Discuss the federal reserve act and glass-steagall actDiscuss the Federal Reserve Act, the Glass-Steagall Act, the Bank Holding Company Act, Monetary Control Act of 1980, |

## Project has an initial requirementA project has an initial requirement of $198,955 for new equipment and $10,880 for net working capital. What is the project's NPV if the tax rate is 37%? |

## What are some internal as well as external factorsWhat are some internal as well as external factors that could have an impact on debt and equity instruments? Explain your answer. |

## What is the required return for dentrix corporationWhat is the required return for Dentrix Corporation? The risk-free rate is 2.7%, the risk premium is 8.1, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 0.9. ro.. |

## According to the black-scholes option pricing modelAssume that you have been given the following information on PK industries: current stock price = $15, strike price option = $15, time to maturity of option = 6 months, risk free rate 6%, variance of stock return = 0.12, d1 = 0.24495, d2 = 0.00000, N.. |

## Providing an additional layer of management oversightLeverage can reduce the degree of managerial entrenchment because managers are more likely to be fired when a firm faces financial distress. When a firm is highly levered, creditors themselves will closely monitor the actions of managers, providing a.. |

## If market is strong form efficientIf a market is strong form efficient, it also implies that: A. semi strong form efficiency holds B. weak form efficiency holds C. on cannot earn abnormal returns with inside information D.Both semi strong form efficiency holds; and one cannot earn ab.. |

## Compute the cost of capital for the firmCompute the cost of capital for the firm for the following: currently bonds with a similar credit rating and maturity as the firm's oustanding debt are selling to yield 8.35 percent while the borrowing firm's corporate tax rate is 34 percent. |

## What is the effective cost of borrowing in this caseYour firm has an average collection period of 36 days. Current practice is to factor all receivables immediately at a discount of 1.7 percent. What is the effective cost of borrowing in this case? |

## The firm reduced its net working capital investmentThe 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.8 million, and the 2015 balance sheet showed long-term debt of $6 million. The 2015 income statement showed an interest expense of $195,000. Suppose you also know th.. |

## How much will gross profit margin growIf a company has DPS of $3.20 and a retention rate of 20%, what are the company's EPS? A company has revenues of $7.6B and cost of goods sold of $6.2B. If revenues are projected to grow by 5% and COGS by 11%, how much will Gross Profit Margin grow? |

## What were critical economic issues of the tax cut debateWas there a production gap when Kennedy assumed the presidency in January 1961? How large was it? Assume a GNP growth rate of 3.3% starting in 1955 and project forward using Excel document. Attach the file directly to the discussion board. What were .. |

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