The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, the company received $21.05 for each of the 6.59 million shares sold. The initial offering price was $22.90 per share, and the stock rose to $29.41 per share in the first few minutes of trading. The company paid $909,000 in legal and other direct costs and $184,000 in indirect costs.
  
What is the net amount raised? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
   
Net amount raised            $
  
What are the total direct costs? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
  
Direct costs            $
  
What are the total indirect costs? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
  
Indirect costs            $
  
What are the total costs? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Total costs            $
  
What was the flotation cost as a percentage of funds raised? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
  
Flotation cost percentage             %

Daily Enterprises is purchasing a $9.5 million machine. It will cost $53,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of $3.9 million per year along with incremental costs of $1.5 million per year. If​ Daily's marginal tax rate is 35%​, what are the incremental earnings​ (net income) associated with the new​ machine?

write one page paper about profit margin & Annual Revenue Across 5-10 years , Annual Growth , & forecasts of Domino's Pizza.

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.0 million. The equipment will be depreciated straight - line over 6 years to a value of zero, but, in fact, it can be sold after 6 years for $511,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year’s forecast sales. The firm estimates production costs equal to $1.80 per trap and believes that the traps can be sold for $7 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 8%.

Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV? (Enter your answer in millions rounded to 4 decimal places.)

Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $38,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $9,500. The grill will have no effect on revenues but will save Johnny’s $19,000 in energy expenses per year. The tax rate is 30%. Use the MACRS depreciation schedule.

a. What are the operating cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. What are the total cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. Assuming the discount rate is 12%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchased? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

you take out a 250,000 30 year mortgage with monthly payments and a rate of 4% monthly compounded what is the mortgage monthly payment

The failure of Frannie Mae and Freddie Mac can be attributed to several weaknesses within the internal environment ranging from procedures and system failures to human capacity and ethical issues.

Identify five areas of Risks that the bank failed to mitigate adequately that could have contributed to the crisis at the bank in 2008.

Present one argument for each risk you identified above to demonstrate why the poor management of that risk contributed to the demise of that financial institution.

Provide one sound recommendation for each risk that you identified above that could. have helped to mitigate or prevent the financial failure

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.0 million. The equipment will be depreciated straight - line over 6 years to a value of zero, but, in fact, it can be sold after 6 years for $511,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year’s forecast sales. The firm estimates production costs equal to $1.80 per trap and believes that the traps can be sold for $7 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 8%.

Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV? (Enter your answer in millions rounded to 4 decimal places.)

Here are book- and market-value balance sheet the United Frypan Company (figures in $ millions): Book-Value Balance Sheet Net working capital $ 40 Debt $ 30 Long-term assets 60 Equity 70 $ 100 $ 100 Market-Value Balance Sheet Net working capital $ 40 Debt $ 30 Long-term assets 195 Equity 205 $ 235 $ 235 Assume that MM’s theory holds except for taxes. There is no growth, and the $30 of debt is expected to be permanent. Assume a 21% corporate tax rate. b. What is United Frypan’s after-tax WACC if rDebt = 7.0% and rEquity = 16.0%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. Now suppose that Congress passes a law that eliminates the deductibility of interest for tax purposes after a grace period of 5 years. What will be the new value of the firm, other things equal? Assume a borrowing rate of 7.0%. (Do not round intermediate calculations. Enter your answer in million rounded to 2 decimal places.)

Max Laboratories Inc. has been operating for over thirty years producing medications and food for pets and farm animals. Due to new growth opportunities they are interested in your expert opinion on a series of issues described below. The firm has a target capital structure of 40 percent debt and 60 percent common equity, which the CFO considers to be the optimal capital structure and plans to maintain it in the future. Next year the firm forecasts Earnings per share (EPS) of $15. Max Labs has One million common shares outstanding. The firm has a line of credit at the local bank at the following interest rates: Can borrow up to $6,000,000 at an 8% interest rate; the rate goes to 10% for amounts above $6,000,000. The firm’s interest subsidy tax rate is 25 percent. The firm plans to retain 70% of the forecasted Net income; the remaining 30% of the estimated profits will be paid as dividends to common shareholders next year. Currently common shares sell for $110 and the expected earnings growth is 9%. The floatation costs to raise new common equity capital, equal 7% of the share price. 1. Estimate the weighted average costs of capital for Max Laboratories: A) After-tax cost of debt. B) Cost of equity. C) Cost of new equity. 2. Calculate all of the Marginal cost of capital break points. Show the amount of total capital and how much would be raised from Common Equity and Debt at each point. A) Before the firm has to raise new equity. B) With the cost of new common equity but before the firm has to borrow at the higher interest rate. C) With New cost of equity and at the most expensive cost of debt. 3. Calculate the Weighted average cost of capital at all the break points found on Question 2 above. A) Before the firm has to raise new equity. B) With the cost of new common equity but before the firm has to borrow at the higher interest rate. C) With New cost of equity and at the most expensive cost of debt.

Suppose that XYZ Corp is considering financing a project with only equity. The project’s unlevered cost of capital is 10%. The project will require a $1000 initial investment today and pay incremental free-cash-flows of $100 in perpetuity starting the end of the next year. If the firm were to finance the project with debt so that its D/E ratio is 0.50 how will the NPV of the project change? Assume the interest rate on the new debt will be 3%, and the firm faces a 21% tax rate. Round your answer to two decimals.

You have an outstanding student loan with required payments of $ 500$500 per month for the next four years. The interest rate on the loan is 9 %9% APR​ (compounded monthly). Now that you realize your best investment is to prepay your student​ loan, you decide to prepay as much as you can each month. Looking at your​ budget, you can afford to pay an extra $ 150$150 a month in addition to your required monthly payments of $ 500$500​, or $ 650$650 in total each month. How long will it take you to pay off the​ loan? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Your firm has taken out a $ 492 comma 000$492,000 loan with 8.2 %8.2% APR​ (compounded monthly) for some commercial property. As is common in commercial real​ estate, the loan is a 55​-year loan based on a 1515​-year amortization. This means that your loan payments will be calculated as if you will take 1515 years to pay off the​ loan, but you actually must do so in 55 years. To do​ this, you will make 5959 equal payments based on the 1515​-year amortization schedule and then make a final 60th payment to pay the remaining balance.  ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) a. What will your monthly payments​ be? b. What will your final payment​ be?

Use the following information for the next 2 questions:

Megatron Corp. estimates their future free cash flows as followed:

Year 1: $7,000; Year 2: $6,500; Year 3: $8,900; and they expect a 6% growth rate beyond year 3. If investors require 15% return, what is their current total company value (V0)?

Question 2 options:

Lakonisho Equipment has an investment opportunity in Europe. The project costs €10.5 million and it is expected to produce cash flows of €1.7 million, €2.4 million, and €3.3 million, for years 1, 2 and 3 respectively. The current spot exchange rate is $1.36/€; the current risk-free rate in the United States is 2.3%, compared to that in Europe of 1.8%. The appropriate discount rate for the project is estimated to be 13%, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of the 3 years for an estimated €7.5 million. What is the NPV of the project? What is the IRR of the project? Should Lakonisho Invest in this project?