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!
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000. The truck falls into the MACRS 3-year class(1 yr 33.33%2 yr 44.45% 3 yr 14.81%) , and it will be sold after three years for $20,100. Use of the truck will require an increase in NWC (spare parts inventory) of $2,100. The truck will have no effect on revenues, but it is expected to save the firm $17,000 per year in before-tax operating costs, mainly labor. The firm’s marginal tax rate is 35 percent. What will the cash flows for this project be?
A company’s bonds have a par value of $1,000 par, 7.8% coupon rate and 30-year maturity. The bonds currently sell for $1,107.20 and pay coupon semi-annually. What is the bonds' yield to maturity? A Company's last dividend was $1.35. The dividend grow..
A firm has a capital structure with $100 million in equity and $100 million of debt. The cost of equity capital is 14% and the pretax cost of debt is 8%. If the marginal tax rate of the firm is 30%, compute the weighted average cost of capital of the..
Determine the Payback period, NPV and IRR for both project A and B (show work). Which Project would you select and why? Be specific. Project A will require an initial investment of $ 200,000 and Project B will require and initial investment of $ 325,..
Maxwell Communications paid a dividend of $2.00 last year. Over the next 12 months, the dividend is expected to grow at 10 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required r..
Compute the effect of this estimated change in inflation on the price of a 15-year, 10% coupon bond with a current yield to maturity of 8%.
A bank offers you $1050 in one year from now, if you deposit $1000 today. A competitor of this bank quotes APRs on their savings accounts. Assume that the second bank compounds interest semi-annually. What APR does the second bank have to offer so th..
How do commercial banks alleviate the problem of liquidity risk that investors would face if they were to directly loan funds to individuals and corporations? What are the main differences between money markets and capital markets?
Harold Rawlings has computed the returns he earned last year from each of the stocks he holds in his portfolio. Compute the return that Harold earned on his portfolio during the year. Harold has decided to keep Danka in his portfolio, even though it ..
A zero coupon bond with a face value of $1,000 is issued with an initial price of $565.01. The bond matures in 20 years. What is the implicit interest, in dollars, for the first year of the bond's life?
Atlantis Fisheries issues zero coupon bonds on the market at a price of $417 per bond. Each bond has a face value of $1,000 payable at maturity. What is the yield to maturity of the bond? (Assume semi-annual coupon payments unless it is explicitly st..
An equipment acquisition proposal was being considered by a large health care organization. The array machine will enable the hospital to perform autoimmunity tests (for immunoglobulins G, M, and A and complements C3 and C4) in-house rather than send..
What is the Present Value of the following annuities? How did you get to your answer?
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