The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $238,000 and cash expenses by $184,000. The initial investment will require $96,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 6-year life of the project. The company has a marginal tax rate of 32 percent. What is the annual value of the depreciation tax shield?

Consider the following option portfolio : What will be the profit/loss on this position if IBM is selling at $87 on the option maturity date? What if IBM is selling at $95? The call sells at $5.50 and the put sells at $1.55. |

At what price should a share sell : The risk-free rate of return is 10%, the required rate of return on the market is 15%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.5 and g=5%, at what price should a shar.. |

Determine the e-field between the conductors : Consider a coaxial transmission line that consists of inner andouter conductors of radii a and b, and is filled with an electron cloud with a volume charge density ofρv=γ/ρ[C/m3] fora |

Explain thermos container and the temperature is measured : A thermos container has 0.075 kilograms of distilled water at a temperature of 27 degrees Celcius. A 0.0076 kilogram sample of solid ammonium nitrate is dissolved in the water in the Thermos container and the temperature is measured to be 22.4 deg.. |

What is the annual value of the depreciation tax shield : The initial investment will require $96,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 6-year life of the project. The company has a marginal tax rate of 32 percent. What is the annual val.. |

What is the amount of the cash flow to creditors : Adelson's Electric had beginning long-term debt of $42,511 and ending long-term debt of $48,919. The beginning and ending total debt balances were $84,652 and $78,613, respectively. The interest paid was $4,767. What is the amount of the cash flow.. |

Find the voltage is developed across the secondary coil : a transformer has N^1 =350 turns and N^2 =2000 turns. what voltage is developed across the secondary coil? |

Calculate the total charge inducedon the conducting plane : A point charge Q is located at (0,0,d) above an infiniteconducting plane that lies in the xy-plane and is maintained atground potential. Find a) the surface charge density as a functionof x and y on the conducting plane |

What is the maximum dividend payout ratio consistent : What is the maximum dividend payout ratio consistent with not requiring external funds for a firm with an ROE of 15% a debt-equity ratio of 25% and annual sales growth objective of 10%? (show work) |

## Calculate the rate of benefitsTeri's yearly salary is$17,470. Benefits consist of one week paid vacation, 8 paid holidays, 80 percent of a total health insurance package costing $2100, 3 percent unemploymnt insurance, |

## Levered equity calculationConsider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. |

## Computation of weighted average cost of capitalComputation of weighted average cost of capital and calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has a 35% marginal tax rate |

## What is swimkidss margin of safetySwimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $86,500. Swimkids expects sales of $265,300 next year. What is Swimkids's margin of safety? |

## What is net value of payments vs. receipts in today dollarsCarol Thomas will pay out $6000 at the end of the year 2, 8000 at the end of year 3 and receive 10000 at the end of year 4. With an interest rate of 13%, what is the net value of the payments vs. receipts in today's dollars? |

## Service sector and prepare a revenue budget on an accrualService sector using pricing decision and prepare a revenue budget on an accrual basis and including all sources of revenue discussed previously |

## Calculate the one year bond equivalent yieldcalculate the one year bond equivalent yield for the Swiss government security that would support the interest rate parity condition. |

## Computation of total interest on the investmentComputation of total interest on the investment and how much total interest income would the money market lender receive |

## Computation of depreciation expenseComputation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense |

## Change in retained earnings accountThe current market price of the firm's shares is $20. If the firm declares a 10 percent stock dividend followed by a cash dividend of $0.10 per share, |

## What is the maximum initial investmentWhat is the maximum initial investment for which this project is acceptable if the pre-tax required return on debt is 8% and the required return on equity is 18%? |

## How the u.s. financial markets impact the economyDescribe how the U.S. financial markets impact the economy, businesses and individuals. Explain the role of the U.S. federal reserve, the federal reserve chairman, the board, indicating it's effectiveness in today's ecnomic environment, provide su.. |

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