1- Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,010,000 in annual sales, with costs of $705,000. The project requires an initial investment in net working capital of $230,000, and the fixed asset will have a market value of $295,000 at the end of the project. If the tax rate is 34 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign.)

1. Coconut, Inc. has sales of $610,400, total equity of $170,000, a profit margin of 10 percent and a debt-equity ratio of 0.8. What is the return on assets?

   		23.70 percent
   		21.34 percent
   		19.95 percent
   		25.50 percent

4 points   

QUESTION 22

1. Blueberry, Inc. has total assets of $642,000. There are 60,000 shares of stock outstanding with a market value of $42 a share. The firm has a profit margin of 7 percent and a total asset turnover of 1.36. What is the price-earnings ratio?

   		26.50
   		41.18
   		18.20
   		33.06

This topic comes from both Chapter 13 and 15. It is an investment topic, but you will need to refer to Chapter 13 to understand stock splits. You are a financial consultant. Your client owns 200 shares of Chipotle Mexican Grill. This corporation has never had a stock split. Write a message to your client discussing the possibility of a stock split. Explain to your client how a 2:1 split might affect their portfolio of stocks. You will need to do some research on stock splits and study the section on stock-splits from the book in Chapter 13. The Chapter 13 PowerPoint slides are a good resource. Your message must be professionally written, using the proper voice for your audience. It must be completely free of spelling and grammatical errors. Remember to be thorough, but concise, so a maximum of two paragraphs. Use actual Chipotle stock prices in your explanation and focus on what the client needs.

You have $1,000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (i) a sequence of three one-year bonds; (ii) a three-year bond; or (iii) a two-year bond followed by a one-year bond. The current yield curve tells you that the one-year, two-year, and three-year yields to maturity are 3.5 percent, 4 percent, and 4.5 percent respectively. You expect that one-year interest rates will be 4 percent next year and 5 percent the year after that. Assuming annual compounding, compute the return on each of the three investments. Instructions: Enter your responses rounded to the nearest two decimal places. Expected return for (i) = ___% Expected return for (ii) =____ % Expected return for (iii) =____ %

Five years ago, Brian had invested $16,850 in a growth fund. The investment is worth $24,000 today. If the interest was compounded annually, what is the annual rate of return earned on the investment?

Greenpoint Corporation is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Suppose the appropriate discount rate is 12 percent. Determine the net working capital spending for Year 4 then calculate the NPV of the project. What is the project NPV? Year 0 Year 1 Year 2 Year 3 Year 4 Investment $118,000 Sales revenue $75,000 $75,800 $77,000 $78,500 Operating cost 18,000 18,600 19,600 21,000 Depreciation 29,500 29,500 29,500 29,500 Net working capital spending 10,000 4,000 2,000 1,000 ? $30,532.66 $29,744.78 $28,568.41 $27,520.33 $26,244.80

Franklin Company is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $372,000, annual operating costs of $31,600, and a 4-year life. Machine B costs $268,000, has annual operating costs of $39,200, and a 3-year life. The firm currently pays no taxes. Which machine should be purchased and why? Machine A; because it will save the company about $2,875 a year Machine A; because it will save the company about $4,130 a year Machine B; because it will save the company about $3,294 a year Machine B; because it will save the company about $2,795 a year Machine B; because it will save the company about $2,358 a year

Fluor Enterprise is considering a 3-year project with an initial cost of $336,000. The project will not directly produce any sales but will reduce operating costs by $150,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are .1429, .2449, .1749, .1249, .0893, .0892, .0893, and .0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $151,000. The tax rate is 25 percent and the required return is 12 percent. An extra $22,000 of inventory will be required for the life of the project. What is the total cash flow for Year 3? $307,512.63 $299,174.80 $290,413.64 $313,416.76 $382,266.33

A project will produce an operating cash flow of $445,000 a year for four years. The initial cash outlay for equipment will be $1,195,000. The net aftertax salvage value of $61,000 will be received at the end of the project. The project requires 87,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 12 percent? $146,800.23 $181,219.28 $154,036.37 $172,811.69 $163,677.13

In 2018, CJH Excavating reported the following information. What is the firm's free cash flow? Dividends are paid out at 31% of earnings for the year. The firm has 50,000 common shares outstanding. The firm's tax rate is 32%.

Treasury Securities.

Consider a 4-year semiannual TIPS with a coupon rate of 6%. Suppose that an investor purchases $1,000,000 of par value (initial principal) of this issue today, and that the annual inflation rate is 2.8% for the 1st six-month period and 3.2% for the 2nd six month period. What is the dollar coupon interest that will be paid in cash at the end of the 2nd six-month period?

Suppose the quote on a bank discount for a treasury bill with 90 days to maturity and a face value of $1,000 is 5% what is the price?

I don't really understand how to estimate revenue. I have been given revenues from previous years and I am being asked to estimate the revenue for FY2020 and explain my rationale. Please help thank you! Please show all relevant work so I can understand how you got to the answer. Thank you!

PS: if possible please use regression including a graph.

you are planning to borrow $10,000 to buy a new car. the loan is being made to you ag 8.0% annual percentage rate. you will make monthly payment for four years. how mi h of the third monthly payment will go to the paymebt of principal

Price Volatility I: Given a $100 par value with a coupon rate of 8% paying semiannually, a term to maturity of 6 years; and an initial yield of 7%.

I.) What is the approximate duration using the shortcut formula by changing yields by 10 basis points?

ii.) What is the approximate convexity using the shortcut formula by changing yields by 10 basis points?

A particular investment offers the following cash flows: none for 3 years, then $1500 per year for

5 years, then $2000 per year for 10 years. The required return is 6%.

a. What is the value of the investment today?

b. What is the value of the investment in 5 years?

c. What is the value of the investment in 8 years?