What are the projected sales for the last year before sale

Assignment Help Financial Management
Reference no: EM131447402

CelebNav, Inc. had sales last year of $670,000, and the analysts are predicting a good year for the start-up, with sales growing 15 percent a year for the next three years. After that, the sales should grow 13 percent per year for two years, at which time the owners are planning to sell the company. What are the projected sales for the last year before the sale? (Round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

Reference no: EM131447402

Questions Cloud

Offering savings accounts : You have decided to visit 4 banks that are offering savings accounts. The first bank offers you a rate of 10% per annum compounded annually. What rate would the second bank have to offer you using monthly compounding that would make you indifferent b..
What is the new beta of the portfolio : You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.12. You have decided to sell a lead mining stock (b = 1.00) at $5,000 net and use the proceeds to buy a like am..
Explain how this donation hurts the stockholders : Suppose a Chicago firm donates $5 million to the local school district to help the school buy new computers. Assume also that the benefits from a point of view of PR, reputation, taxes amounts to $3 million in total. Explain how this donation hurts t..
What must have been growth rate of the mutual fund nav : The portfolio of an open-end mutual fund with 50,000 shares outstanding contained 1000 shares of ABC, 2000 shares of DEF, 2500 shares of GHI, and 5000 shares of JKL on a day where the closing price has been $100 for ABC, $50 for DEF, $40 for GHI, and..
What are the projected sales for the last year before sale : CelebNav, Inc. had sales last year of $670,000, and the analysts are predicting a good year for the start-up, with sales growing 15 percent a year for the next three years. After that, the sales should grow 13 percent per year for two years, at which..
What would be the size of your fixed monthly payments : It is January 1, 2016. Starting today, you plan to invest $5,000 at the beginning of every quarter for fifteen years into a pension fund that will deliver an effective annual return of 7.5% net of the management fees. What would be the size of your f..
Which investment would have lower dollar market value : Which investment would have a lower dollar market value (price)? For each pair of alternatives, indicate your correct choice: A call option with a strike (“exercise”) price of $40, with the same maturity on the same stock currently with a market valu..
Which investment would have a lower dollar market value : Which investment would have a lower dollar market value (price)? For each pair of alternatives, indicate your correct choice: A three-month put option with an exercise price of $50, both on the same stock now selling for $53/share? A three-month call..
Expects the market to be lower in the future : An investor who is “bearish” (i.e., expects “the market” to be lower in the future) can Sell individual stocks short; buy a put option, or; can write a call option. These three choices: Are quite different. Since shorting stocks or call options will ..

Reviews

Write a Review

Financial Management Questions & Answers

  What does the stock sell for today

D. S. Trucking Company stock pays a $1.50 dividend every year without fail. A year ago, the stock sold for $25 per share, and its total return during the past year was $20%. What does the stock sell for today?

  Market risk premium and real risk-free rate

Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.3% rate of inflation in the future. The real risk-free rate is 1%, and the market risk premium is 4%. Manning has a beta of 1.9, and its realized rate of..

  At the optimal debt to capital ratio

At the optimal debt to capital ratio of 50%, RAD has an interest coverage ratio of 2.198.Estimate the cost of capital at the optimal debt ratio. (You can still use that the current regression beta of 2.1 to arrive at the new beta)

  Assuming that beckett goes through with recapitalization

BIT and Leverage Beckett, Inc., has no debt outstanding and a total market value of $280,000. Earnings before interest and taxes, EBIT, are projected to be $21,000 if economic conditions are normal. If there is strong expansion in the economy, then E..

  Compare the various forms of business ownership

Compare the various forms of business ownership as found in our textbook--Chapter 5. What are the advantages and disadvantages of each form? Which one would be best for a small business, or one intending to increase in size? What advice would you off..

  About the efficient market hypothesis

For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient,  The stock price has risen steadily each day for the past 30 da..

  Executive roles of management-planning-organizing-leading

How does the concept of the time value of money affect decisions made across the four executive roles of management -- planning, organizing, leading, and controlling? Why is this concept important for the contemporary executive to understand?

  What was the average real return on the stock

You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average T..

  According to the residual distribution model

The Wei Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 45%. Wei has $10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual dis..

  What happens to longer term rates

Suppose that bond traders expect an increase in the federal funds rate, but the FOMC surprises them by keeping it constant.  - What happens to longer-term rates?

  What was the firm free cash flow

Everest Inc. recently reported $202,500 of sales, $145,200 of operating costs other than depreciation, and $9,775.00 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax..

  What is the present value of his inheritance

His recently departed dear Aunt Annie, may she rest in peace, has left Tom a 6-year annuity paying $4,500 per year. He will receive the first payment 4 years from today. If he is discounting at 7% (EAR), what is the present value of his inheritance?

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!

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