What is the projected net income

Assignment Help Financial Management
Reference no: EM13911284

A proposed new investment has projected sales of $837,000. Variable costs are 57 percent of sales, and fixed costs are $187,610; depreciation is $97,000. Assume a tax rate of 35 percent.

What is the projected net income?

Reference no: EM13911284

Questions Cloud

General ledger accounts of a new capital projects fund : The following transactions tok place in the town of Burchette during 20X3: A bond issue of $12,000,000 was authorized for the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the General Led..
Using the dividend-growth model : Two stocks each pay a $1 dividend that is growing annually at 8 percent. Stock A's beta = 1.3; stock B's beta = 0.8. If Treasury bills yield 9 percent and you expect the market to rise by 13 percent, what is your risk-adjusted required return for eac..
Expected constant dividend and the last dividend paid : Ajax common stock has a 6% expected constant dividend and the last dividend paid was $2 per share. If you require a 12% return on stock of this risk level what is the maximum price you should pay?
What is ibm smarter planet business strategy : 1. What is IBM's Smarter Planet business strategy? How does this strategy relate to IBM's mission and values?
What is the projected net income : A proposed new investment has projected sales of $837,000. Variable costs are 57 percent of sales, and fixed costs are $187,610; depreciation is $97,000. Assume a tax rate of 35 percent. What is the projected net income?
Expected return on an average investment in the market : You are considering the purchase of a common stock whose historical beta is .5. What rate of return should you require from this stock if the current risk free rate of return is 4% and the expected return on an average investment in the market is 11%..
Use straight-line depreciation to zero over projects life : You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has a three-year life, and has pretax operating costs of $66,000 per year. use straight-line depreciation to zero over the project’s life and assume a salv..
What functional areas of altitude online are supported : What functional areas of Altitude Online are supported by MIS? How do MISs and DSSs provide a value add to Altitude Online products?
How to solve the most frustrating aspect of college : Have your team make a group decision about how to solve the most frustrating aspect of college or university life. Appoint one or two members of the team to disrupt the meeting with negative group behavior. After the meeting.

Reviews

Write a Review

Financial Management Questions & Answers

  Operating expenses are planned

A buyer plans on net sales of $2,000,000 for the coming year. Operating expenses are planned at $700,000 and retail reductions are planned at $300,000 with returns and allowances from customers at $50,000. Management wants a profit of $300,000 from t..

  Describe accurately the three parts of the dupont formula

Which three of the following list describe accurately the three parts of the DuPont formula?

  What is the firms market value capital structure

Titan Mining Corporation has 9.6 million shares of common stock outstanding and 400,000 6 percent semiannual bonds outstanding, par value $1,000 each. What is the firm's market value capital structure? If Titan Mining is evaluating a new investment p..

  What is the maximum percentage decline in the stock

You decide to buy 1,500 shares of stock at a price of $62 and an initial margin of 80 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 40 percent?

  What is your constant dollar mortgage payment on the day

You plan to live in your house for 20 years, and your 20 year mortgage (principle and interest only) is $2,100/month. If you expect inflation to average 3% annually, what is your constant dollar mortgage payment on the day of your last payment? Curre..

  Estimate average working capital required

Calculate with explanation the unit costs of the souvenirs and determine the price of the souvenirs and explain any other information that might be relevant for deciding the price

  Forecasts of revenues over the lifetime of project

These are the forecasts of revenues over the lifetime of a project. Assume all cash flows occur at the end of the year. Yearly expenses from year 1 to year 3: $0 Yearly expenses from year 4 to year 10: $55 Million Yearly expected revenues from year 4..

  CAPM approach to calculate the cost of equity

If the cost of new common equity is higher than the cost of internal equity, why would a firm choose to issue new common stock? Calculate all MCC break points for the following information: What determines whether to use the dividend growth model app..

  Calculate the sustainable growth rate

PING, INC. projects a rate of return on equity of 20%. Management plans to pay 70% of earnings as dividends. Earnings this year will be $3 per share, and investors expect a 12 rate of return on the stock. Calculate the sustainable growth rate.

  What are the yield to maturity ytm

BTR Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1000.00, and their current market price is $1130.35. However, BTR Co. may call the bonds in eight years at a call price of $106..

  What overall net income would be produced

What overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent?

  Role of consultant with ten years experience in public funds

You are in the role of a consultant with ten years experience in the public financial management industry. A group of 20 civic leaders are considering forming a new task force and have asked you to prepare a proposal on whether they should build a fa..

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