What would be the marginal and average tax rates for a corporation with an income level of $85,000? (Do not round intermediate calculations. Enter the marginal tax rate as a whole percent. Enter the average tax rate as a percent rounded to 2 decimal places.)

Assume a Bank has the following loan portfolio:

Credit Rating   Bank Debt    Corporate Debt
AAA 10,000,000   5,000,000
A 10,000,000   10,000,000
BBB 10,000,000   5,000,000

Risk weightings for these assets are:

Credit Rating   Bank Debt   Corporate Debt
AAA 20%   20%
A 50%   50%
BBB 50%   100%

What is the Bank's total risk weighted assets?

A. $23,000,000
B. $23,000
C. $400,000
D. $50,000,000

Calculations of the NPV, IRR and the payback for the project and an analysis of the results. I need the excel formula calculation and analysis of the questions

You have identified a potential opportunity for WBC, which involves undertaking a project that will have a ten-year life. The project requires an initial purchase of equipment and furniture totalling $4,500,000, plus ancillary programming capability and machinery costing $1,500,000. The equipment and furniture will depreciate and have a salvage value of $500,000 at the end of the project’s life, and the programing machinery will have nil salvage value at the end of the project’s life. Depreciation is calculated on a straight-line basis over five years. Information related to the project is as follows: • Sales will be $3,050,000, $4,000,000 and $5,000,000 respectively in each of the first three years of operation, expected to grow at 10 per cent per annum for a further four years thereafter, and then settle to a growth of 5 per cent per annum indefinitely thereafter. In the event of not undertaking this project, all of this income would be lost. • Variable costs associated with the project will be 65 per cent of sales. • Fixed costs associated with the project will be $400,000 in the first year and expected to grow at 5 per cent per annum thereafter. • Even though this project will not add additional expenses to head office, WBC has a policy of allocating a ‘head office’ charge of $200,000 a year to each major project. • Research for this project and its capability was conducted during the previous year at a cost of $300,000. It yielded valuable information. • The corporate tax rate is 30 per cent.
GSB003 Managing Financial Resources: Course Outline
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• Financiers of this type and risk in this industry are presently requiring a rate of 12 per cent after corporate tax.

In order to undertake this project, WBC is considering various financing options. One option is to borrowing $5,000,000 at 7 per cent per annum. This loan will be paid off in 10 equal annual instalments.

Required Evaluate this project, and provide a report to WBC management discussing whether or not you recommend it should undertake the project, providing a full explanation of your recommendation. As support for your recommendation ensure your answer includes the following: • Calculations of the NPV, IRR and the payback for the project and an analysis of the results. • Justification for the correct discount rate to be used in evaluating the project. • Your assessment of the advantages and disadvantages of each methodology (NPV, IRR and payback), and which you therefore recommend is applied to evaluate this project. • Details of any other (financial and non-financial) matters you would consider before making a recommendation in respect of this project.

Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section.

The table below summarizes prices (per $100 face value) of various default-free zero-coupon bonds (expressed as a percentage of face value):

a. Compute the yield to maturity for each bond.

b. Plot the zero-coupon yield curve (for the first five years).

c.Is the yield curve upward sloping, downward sloping, or flat?

Maturity (years)                Price                                 Face Value =$100.00

a. Compute the yield to maturity for each bond.

b. Plot the zero-coupon yield curve (for the first five years).

c.Is the yield curve upward sloping, downward sloping, or flat?

The yield curve is _________

A bond matures in 20 years and pays an 8 percent annual coupon. The bond has a face value of $1000 and currently sells for $900. What is the bond's current yield and yield to maturity?

You have just received a windfall from an investment you made in a​ friend's business. He will be paying you $ 25,034 at the end of this​ year, $ 50,068 at the end of the following​ year, and $ 75,102 at the end of the year after that​ (three years from​ today). The interest rate is 10.2 % per year.

a. What is the present value of your​ windfall?

b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?

You are planning to buy a stock that has just paid a dividend (D0) of $2.50. In addition, you anticipate the following dividend growth rates:
• Year 1 = 100%
• Year 2 = 0%
• Year 3 = -30% (note this is NEGATIVE 30%)
• Year 4 = 20%
• Years 5 through infinity = 4%
Assume a discount rate of 10%. Based on this, what is the value of the stock today? (Hint: use the three-step process of non-constant growth DDM).

Costco is deciding between two potential investments. Each as an initial cost of 10,000 today,ans will produce the cash flow and only cash flows- listed below. 9 assume the cash flows occur at the end of the year). assuming a 10% return is required on investments, compute the net present value of the two options and indicate which investment if any should be made.

cash flow produce by each investment

year Drops Hots

1 $5,000 $8000

2 $6,000 $7,000

3 $7,000 $6,000

4 $8,000 $5,000

1. You have a zero coupon bond with ten years until maturity with $1000 face value. Yield to maturity is 5%. What is the duration of the bond? Show all calculations.

2. You have a 2% bond paying annual coupons, 3 years until maturity with $1000 face value. Yield to maturity is 2.5%. What is the duration of the bond? Show all calculations.

1.                 Define with words the following ratios:

A.            Liquidity (do each individually - current ratio, quick ratio, days cash on hand, days receivables)

B.             Solvency (Debt Service Coverage Ratio)

C.            Profitability (do each individually -  Total Margin, Operating Margin, Return on Total Assets)

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.0%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 11% 40% Bond fund (B) 6% 20% The correlation between the fund returns is .16. What is the expected return and standard deviation of the optimal risky portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return % Standard deviation %

You own a lot in Lowell, Massachusetts that is currently unused. Similar lots have recently sold for $0.7 million. Over the past five years, the price of land in the area has increased 8 percent per year, with an annual standard deviation of 12 percent. A buyer has recently approached you and wants an option to buy the land in the next 12 months for $0.77 million. The risk-free rate of interest is 3 percent per year, compounded continuously. How much should you charge for the option? $16,877.44 $15,996.12 $14,762.58 $13,267.79 $12,196.55

Your company is deciding whether to buy a new production equipment worth $25 mil and has employed a consultant to evaluate the decision. Your boss is unhappy with the following report:

You note that the consultant didn’t factor in that the projects require an upfront working capital injection of $10 million, which will be fully recovered in year 10. The consultant has attributed the $2 million SG&A expense, out of which $1 million is sunk cost (it has to be used regardless of the project decision).
Given the information, calculate free cash flows for years 0 through 10. If the interest rate is 10%, what’s the value of the project?

Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $700,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life (ignore the half-year convention for the straight-line method). The applicable MACRS depreciation rates are 33%, 45%, 15%, and 7%. The company's WACC is 11%, and its tax rate is 35%.

What would the depreciation expense be each year under each method? Round your answers to the nearest cent. Year Scenario 1 (Straight-Line) Scenario 2 (MACRS) 1 $ $ 2 3 4

Which depreciation method would produce the higher NPV?

How much higher would the NPV be under the preferred method? Round your answer to two decimal places. Do not round your intermediate calculations.