Sun Brite has a new pair of sunglasses it is evaluating. The company expects to sell 5,900 pairs of sunglasses at a price of $154 each and a variable cost of $106 each. The equipment necessary for the project will cost $310,000 and will be depreciated on a straight-line basis over the 6-year life of the project. Fixed costs are $200,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 increase in variable costs per pairs of sunglasses?

Each year you need to power wash your deck.
You can rent a power washer for $38 per day. If you go with this option, you will pay $38 each year starting today up to and including year 5 .
If you buy the power washer, you will pay $100 today and the power washer will last up to and including year 5 .

If your investments earn 4% compounded annually, how much does it save you in present value terms to own the power washer?

Group of answer choices

$113

$102

$118

$97

$107

You are trying to decide whether to keep your current car or buy a new car. If you keep your current car you will pay $350 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for 10 years. Alternatively, you can buy a new car and pay $28,000 today and $300 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for for 10 years. If your investments earn 4% APR (compounded monthly), which alternative is cheaper in present value terms and by how much? get new car, saves $24,395 keep existing car saves $23,061 keep existing car saves $22,390 keep existing car saves $25,215

Question 1

Trevi Corporation recently reported an EBITDA of $31,200 and $9,700 of net income. The company has $6,600 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense? Round to the nearest cent.

Question 2

Working capital: Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,236,268, accounts payables worth $4,160,826, inventory of $7,121,886, accounts receivables of $3,488,415, notes payable worth $1,151,930, and other current assets of $121,634. What is the company’s net working capital?

Question 3

The difference between FIFO and LIFO is FIFO refers to the practice of firms, when making sales, assuming that the inventory that came in last (at a higher price) is being sold first. LIFO implies that a firm is selling the lower cost, older inventory first, leaving the higher cost, newer inventory on the balance sheet.

Question 3 options:

Question 4

Which of the following balance sheet items generally takes the longest time to convert to cash?

Question 4 options:

Question 5

A firm’s net income may be greater than its net cash flows because the firm

Question 5 options:

Question 6

The average tax rate is

Question 6 options:

Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (11 %) (37 %) 0.2 5 0 0.5 12 24 0.1 24 28 0.1 33 35 Calculate the expected rate of return, , for Stock B ( = 11.60%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 20.31%.) Do not round intermediate calculations. Round your answer to two decimal places. % Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places. Is it possible that most investors might regard Stock B as being less risky than Stock A? If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be less risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. Assume the risk-free rate is 2.5%. What are the Sharpe ratios for Stocks A and B? Do not round intermediate calculations. Round your answers to four decimal places. Stock A: Stock B: Are these calculations consistent with the information obtained from the coefficient of variation calculations in Part b? In a stand-alone risk sense A is less risky than B. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. In a stand-alone risk sense A is less risky than B. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. In a stand-alone risk sense A is less risky than B. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense.

You purchased a house five years ago and borrowed $250,000 . The loan you used has 300 more monthly payments of $1,194 each, starting next month, to pay off the loan. You can take out a new loan for $226,119 at 3.00% APR compounded monthly , with 300 more payments, starting next month to pay off this new loan. and pay off the old loan. If your investments earn 3.00% APR compounded monthly , how much will you save in present value terms by using the new loan to pay-off the original loan? There may be rounding in this case , so pick the closest answer.$24,194 $25,668 $26,166 $26,951 $24,920

Q4. What is the y/y revenue trend? in apple company

Q5. What product revenue is growing fastest in % terms? Apple company

The total market value of the common stock of the Okefenokee Real Estate Company is $9.5 million, and the total value of its debt is $6.1 million. The treasurer estimates that the beta of the stock is currently 1.6 and that the expected risk premium on the market is 9%. The Treasury bill rate is 5%. Assume for simplicity that Okefenokee debt is risk-free and the company does not pay tax.

1. What is the required return on Okefenokee stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
2. Estimate the company cost of capital. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
3. What is the discount rate for an expansion of the company's present business? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
4. Suppose the company wants to diversify into the manufacture of rose-colored spectacles. The beta of unleveraged optical manufacturers is 1.20. Estimate the required return on Okefenokee's new venture. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

A. Required Return:_____%

B. Cost of Capital:____%

C. Discount Rate:_____%

D. Required Return:______%

New-Project Analysis

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $870,000, and it would cost another $25,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $699,000. The machine would require an increase in net working capital (inventory) of $16,500. The sprayer would not change revenues, but it is expected to save the firm $376,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 35%.

a. What is the Year 0 net cash flow?
$

b. What are the net operating cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar.

c. What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)? Do not round intermediate calculations. Round your answer to the nearest dollar.
$

d. If the project's cost of capital is 15 %, what is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar.
$

Should the machine be purchased?
-Select-Yes OR No

Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $25 million, of which 80% has been depreciated. The used equipment can be sold today for $7.5 million, and its tax rate is 30%. What is the equipment's after-tax net salvage value? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

$

3. Consider the following semiannual bond: Coupon rate = 6.5% Maturity = 20 years Par value = $1,000 Market price = $1,035 Can be called in 8 years at $1,032.5 Can be called in 15 years at par Only put date in 8 years and putable at par value (1) What is the yield to maturity for this bond? (1 point) (2) What is the yield to first call? (1 point) (3) What is the yield to second call? (1 point) (4) What is the yield to worst for this bond? (2 points)

A company has just paid a dividend of $ 2 per share, D0=$ 2 . It is estimated that the company's dividend will grow at a rate of 18 % percent per year for the next 2 years, then the dividend will grow at a constant rate of 7 % thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the stock's current price? Round your answer to two decimal places.