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!
Your company, which is financed entirely with common equity, plans to manufacture a new product, a cell phone that can be worn like a wristwatch. Two robotic machines are available to make the phone, Machine A and Machine B. The price per phone will be $250.00 regardless of which machine is used to make it. The fixed and variable costs associated with the two machines are shown below, along with the capital (all equity) that must be invested to purchase each machine. The expected sales level is 27,000 units. Your company has tax loss carry-forwards that will cause its tax rate to be zero for the life of the project, so T = 0. How much higher or lower will the project's ROE be if you select the machine that produces the higher ROE, i.e., what is ROEB - ROEA? (Hint: Since the firm uses no debt and its tax rate is zero, ROE = EBIT/Required investment.) Machine A Machine B Price per phone (P) $250.00 $250.00 Fixed costs (F) $1,000,000 $2,000,000 Variable cost/unit (V) $200.00 $150.00 Expected unit sales (Q) 27,000 27,000 Reqd equity investment $2,500,000 $3,000,000 Answer 8.68% 8.49% 9.33% 9.43% 8.12%
A corporation makes a single product that it sells for $18 a unit. Fixed costs are $76,000 per month and the product has a contribution margin ratio is 40 percent.
A family trust will convey property to you in 15 years. If the property is expected to be worth 50,000 when you receive it, what is the present value of your interest, discounted at 10 percent annually?
The given return figures were computed using closing prices obtained from Yahoo Finance website for Harley Davidson. Calculate the average monthly return for the company and the standard deviation for these monthly returns.
what kind of business law system would you adopt -a civil law system or a common law system, and why? 2) What kind of business regulations would you impose?
Objective type questions on cost of capital and WACC and he company currently has no debt in its capital structure
Describe one motive for pursuing a M&A? Illustrate and provide an example of one commonly employed term in M&A? Define three types of M&A's?
The tax rate is 35%. Your estimated cost of capital is 10%. What is the net present value of this project?
Computation of cost of debt bonds and common equity for WACC - What is the bond-yield-plus-risk-premium estimate for Coleman's cost of common equity?
Suppose that the risk-free rate is 5%, the company's beta is equal to 2, and the expected market return is equal to 20%. What should be the IPO price (which is equal to the fundamental value of the firm) according to the two stage DDM?
What is an event study designed to test? What role does par value play in the pricing and sale of common stock by the issuing corporation? Why do most firms assign relatively low par values to their shares?
According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2011? What is the corresponding implied forward rate
Computation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense
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