Kolby’s Korndogs is looking at a new sausage system with an installed cost of $685,000. The asset qualifies for 100 percent bonus depreciation and can be scrapped for $91,000 at the end of the project’s 5-year life. The sausage system will save the firm $195,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $47,000. If the tax rate is 21 percent and the discount rate is 10 percent, what is the NPV of this project?

Use the information in the table

1. What is the expected return of a portfolio with 25% of wealth invested in the US, and 75% invested in the UK?
2. What is the standard deviation of return of a portfolio with 25% of wealth invested in the US, and 75% invested in the UK?
3. What is the covariance of return between the US and the UK?
4. Can an investor obtain diversification gains by investing in both the US and the UK?  Why or why not?  Be sure to provide quantitative justification for your answer.

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $411,000 is estimated to result in $152,000 in annual pretax cost savings. The press is eligible for 100 percent bonus depreciation and it will have a salvage value at the end of the project of $53,000. The press also requires an initial investment in spare parts inventory of $15,800, along with an additional $2,800 in inventory for each succeeding year of the project. The shop’s tax rate is 23 percent and its discount rate is 10 percent. Calculate the project's NPV.

Major concepts with which you should have some familiarity include:

FINANCE

• Financial instrument types (e.g., stocks, bonds) and pricing concepts

• Financial ratio interpretation

• Financial criteria for evaluating projects (e.g., cash flows, NPV, payback period,

  etc.)

• Valuation of stocks and bonds

• Break-even – term and applicatio

• Goals of the corporation

• Market beta and risk analysis

• Benchmarking

Briefly discuss the advantages and disadvantages of statistical sampling.

t year-end 2018, Wallace Landscaping’s total assets were $2.17 million, and its accounts payable were $505,000. Sales, which in 2018 were $2.8 million, are expected to increase by 15% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $405,000 in 2018, and retained earnings were $280,000. Wallace has arranged to sell $120,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 7%, and 60% of earnings will be paid out as dividends.

What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $

What were Wallace's total liabilities in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $

How much new long-term debt financing will be needed in 2019? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. Round your answer to the nearest dollar. $

River community operating metrics form question Profit per inpatient discharge. What metric is used to get the profit for inpatient discharge, profit per outpatient visit and the net revenue per discharge and net revenue per visit.

You have invested a portfolio comprised of Dell, Apple and Microsoft. Calculate the expected return and standard deviation of the portfolio given the information below. (SHOW IN EXCEL). Provide step by step solution.

1)Calculate the Expected return of the portfolio. (EXCEL)

2) The variance of the portfolio (EXCEL)

3) The standard deviation of the portfolio ( EXCEL)

This question requires the use of the Excel file ‘Assignment 3 Data’ found on ACORN. In the file, you will find the annual returns for Enbridge Inc. (ENB) and the S&P/TSX Composite Index (which we will use for the market portfolio). All parts of this question are to be done in Excel with your results printed and submitted with the other questions in this assignment.

1. Use the data for each of ENB and the S&P/TSX Composite Index to find the historical 95% confidence interval of each. [10 points]

2. Plot the returns of the market against the returns of ENB. Add a trendline to the graph and determine the beta of the stock from your trendline. [5 points]

3. Determine the variance and average annual return of the market portfolio. [3 points]

4. Determine the correlation coefficient between the market portfolio and ENB. [3 points]

5. What is the calculated beta for ENB using the information derived from parts a, c, and d? How does this compare with your answer to part b? [2 points]

6. The current Government of Canada Benchmark 10 Year Bond Yield (which will be our risk-free rate) is 1.61%. What is the required return on ENB stock according to the CAPM? [2 points]

The following information is available about an investment opportunity. Investment will occur at year 0 and sales will occur from year 1 to year 8. Use a nominal discount rate, calculated as in = (1 + ir)(1 + p) – 1, where ir is the real discount rate, and p is expected inflation.

Facts and assumptions

Initial cost $28,000,000

Unit sales $400,000

Selling price per unit, year 1 $60

Variable cost per unit, year 1 $42

Life expectancy (years) 8

Salvage value $0

Depreciation Straight-line

Tax rate 37%

Real discount rate 10.0%

Inflation rate 0.0%

a. Prepare a spreadsheet to estimate the project’s annual after-tax cash flows.

b. Calculate the investment’s internal rate of return and its net present value assuming zero inflation.

c.

How do the internal rate of return and net present value change when you assume an inflation rate of 8 percent per year in price and variable cost per unit?

d. How do you explain the fact that inflation causes the internal rate of return to increase and the NPV to decrease?

e. Does inflation make this investment more attractive or less attractive? Why?

Information on lightening power Co. is show below. Assume the company's tax rate is 24 percent.

DEBT: 16,900 5.9 percent coupon bonds outstanding, $1000 par value, 26 years to maturity, selling for 106.5 percent of par; semi annual payments

COMMON STOCK: 555,000 shares outstanding, selling for $82.00 per share; Beta is 1.20

PREFERRED STOCK: 22,000 shares of 4.2 percent preferred stock outstanding, currently selling for $91.40 per share. the par value is $100.

MARKET: 6.5 percent market risk premium and 3.1 percent risk-free rate.

A.) What is the company's cost of each form of financing?

B.) Calculate the company's WACC.

Show all work, Please and thank you :)

Futures

What is the implied interest rate on a Treasury bond ($100,000, 6% coupon, semiannual payment with 20 years to maturity) futures contract that settled at 100'16? Do not round intermediate calculations. Round your answer to two decimal places.

%??????

If interest rates increased by 1%, what would be the contract's new value? Do not round intermediate calculations. Round your answer to the nearest cent.

$ ??????

PLEASE SHOW FORMULA!! Thank you :)

Belarus Bearing Just paid a dividend of £7.20 per share on its stock. The dividends are expected to grow at a constant rate of 6% per year, indefinitely. If investors require (the discount rate) a 12% return on Belarus Bearing stock, what is the current price (Po)? What will the price be in 3 (P3) years? In 15 years (P15)?

n  If the stock is marketable at $95, what would be your investment decisions? Why?

n  If the firm’s risk as perceived by market participants suddenly increases, causing the required return to rise to 20 percent, what will be the common stock value today?

XYZ corp. is considering investing in a new machine. The new machine cost will $10,000 installed. Depreciation expense will be $1000 per year for the next five years. At the end of the fifth year XYZ expects to sell the machine for $6000. XYZ will also sell its old equipment today that has a book value of $3000 for $3000. In five years, the old machine will be fully depreciated and have a salvage value of zero. Additionally, XYZ Corp expects that the new machine will increase its EBIT by $2000 in each of the next five years. Assuming that XYZ’s tax rate is 21% and the new machines WACC is 15%, what is the projects NPV. Round your final answer to two decimals.

NOTE: Answer is not $13,651.94 as someone else put that