St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost $181,000 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $26,000 to $82,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the project cost of capital is 14%. Should the old welder be replaced by the new one? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign.

The NPV of the project is $ _______ ?  

Old welder -Select-should be replaced.

A Canadian company issues an 8-year term bond with face value of​ $1,000 and​ 6% coupon rate. If the market prevailing effective rate of interest is​ 5.75%, what is the price an investor will have to​ pay? Note: The bond pays a​ $60 coupon​ (or interest) payment at the end of each of the 8 years and pays the face value at the end of the 8 years.

A.​$1,150.00

B.​$1,200.00

C.​$1,015.85

D.​$1,215.00

Procter and Gamble​ (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG to increase its dividends by 8.1 %8.1% per year for the next five years​ (through 2014), and thereafter by 2.9 %2.9% per year. If the appropriate equity cost of capital for Procter and Gamble is 7.3 %7.3% per​ year, use the​ dividend-discount model to estimate its value per share at the end of 2009.

The price per share is ​$____?  (Round to the nearest​ cent.)

Non-constant growth model:
Do=$2.00 required return on equity= 5%

g= 9% n=1,2

g=7% n=3,4

g=3% n=5 and thereafter

No spreadsheet, worked out

1. According to Mike Taft of RVK, the “Markets Group” is an important unit of the Federal Reserve. What is the ‘Markets Group,” and what is their main responsibility?

Show your work please

1. What is the discount yield, bond equivalent yield, and effective annual return on a $2 million Treasury bill that currently sells for 99.90 percent of its face value and is 28 days from maturity?

1. Based on the loanable funds theory, explain how each of the following changes should impact interest rates (increase or decrease):
   1. Covenants on borrowing become more restrictive.
   2. The Federal Reserve increases the money supply.
   3. Total household wealth increases.

LUVE produces bracelets. Each band generates $460 in revenue and requires one
ounce of gold as an input. LUVE plans to produce and sell one widget in exactly
one year. The c.c. risk-free rate is zero percent.

1. LUVE is considering hedging their gold exposure with a long forward contract.
   The one-year forward price of gold is $420 per ounce. If the spot price of gold is $450
   per ounce in one year, what is LUVE's hedged profit?

The answer I got was 30

2. LUVE is considering hedging their gold exposure with a call option. The premium on a one-year call option on gold with a strike of $420 per ounce is $8.77. If the
price of gold is $450 per ounce in one year, what is LUVE’s hedged profit?

I got 21.23

3. The call option hedge outperforms the long forward hedge (in terms of profits) whenever the gold price is below S*. What value of S* makes this statement true?

I got -38.77

(The following data apply to the next three questions.)

Assume the following cost and revenue data for General Hospital: Fixed costs = $15,000,000. Variable cost per inpatient day = $250. Revenue per inpatient day = $1,000.

1. What is the expected profit at a volume of 25,000 inpatient days?

a. -$3,750,000 b. $ 0 c. $1,750,000 d. $2,750,000 e. $3,750,000

2. What revenue per inpatient day is required to obtain a profit of $1,000,000 at a volume of 25,000 patient days?

a. $750 b. $790 c. $850 d. $890 e. $950

3. Which of the follow statements best describes the contribution margin?

a. The contribution margin is defined as fixed costs minus variable costs.

b. Under fee-for-service, the contribution margin is the dollar amount of each unit of service that is available first to cover fixed costs and then to contribute to profit. c. Under capitation, the contribution margin is the dollar amount of each PMPM premium that is available to pay for administration overhead.

d. The contribution margin is defined as revenues minus fixed costs.

e. Under capitation, the total contribution margin is the contribution margin multiplied by the PMPM premium rate.

Question 1: In the past 3 years, give an example of one Bank Security breach?

Question 2: In your opinion, are Bank mergers beneficial or detrimental to the general public?

Question 3: Are bank branches still necessary? If so, why??

Daryl wishes to save money to provide for his retirement. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. He will make 360 such deposits. Then, one year after making his final deposit, he will withdraw $100,000 annually for 25 years. The fund will continue to earn 12% compounded monthly. How much should the monthly deposits be for his retirement plan?

A) 189.58

B) 199.58

C) 214.21

D) 234.89

E) 249.38

how do u calculate value of a bond

You consider purchasing $1000 face value 7 year annual coupon bond which currently sells for $975.20 at the bond market the annual coupon payments are $70 given that your annual required rate of return to purchase his bond is 8%

a)What is the value of the bond to you a potential investor?

b) What is your expected rate of return should you purchase the barn today and hold it to maturity

c) would u buy the bond

Bakes A Lot, Inc., has $1,000 face value bonds outstanding. These bonds pay interest semi-annually, mature in 3 years, and have a 8.0 percent coupon. The current price is quoted at 98.59. What is the yield to maturity?

Johnson Real Estate Company was founded 25 years ago by the current CEO, David Johnson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past 18 years, and the shareholders are satisfied with the company’s management. Prior to founding Johnson Real Estate, David was the founder and CEO of a failed camel farming operation. The resulting bankruptcy made him extremely averse to debt financing. As a result, the company is entirely equity financed, with 8 million shares of common stock outstanding. The stock currently trades at $37.80 per share. Johnson is evaluating a plan to purchase a huge tract of land in the southeastern United States for $85 million. The land will subsequently be leased to tenant farmers. This purchase is expected to increase Johnson's annual pretax earnings by $14.125 million in perpetuity. Abigail Burton, the company’s new CFO, has been put in charge of the project. Abigail has determined that the company’s current cost of capital is 10.2 percent. She feels that the company would be more valuable if it included debt in its capital structure, so she is evaluating whether the company should issue debt to entirely finance the project. Based on some conversations with investment banks, she thinks that the company can issue bonds at par value with a 6 percent coupon rate. From her analysis, she also believes that a capital structure in the range of 70 percent equity/30 percent debt would be optimal. If the company goes beyond 30 percent debt, its bonds would carry a lower rating and a much higher coupon because the possibility of financial distress and the associated costs would rise sharply. Johnson has a 23 percent corporate tax rate (state and federal). If Johnson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain.