PLEASE ANSWER J&K :) THANK YOU!

1. Q Corporation and R Inc. are two companies with very similar characteristics. The only difference between the two companies is that Q Corp. is an unlevered firm, and R Inc. is a levered firm with debt of $5 million and cost of debt of 10%. Both companies have earnings before interest and taxes (EBIT) of $2 million and a marginal corporate tax rate of 40%. Q Corp. has a cost of capital of 15%.                         (20 marks total)

a. What is Q’s firm value?                                                                                     

b. What is R’s firm value?                                                                                      

c.   What is R’s equity value?                                                                         (1 mark)

d. What is Q’s cost of equity capital?                                                        (1 mark)

e. What is R’s cost of equity capital?                                                       .

f.   What is Q’s WACC?                                                                                     (1 mark)

g. What is R’s WACC?                                                                                  

h. Compare the WACC of the two companies. What do you conclude?       (1 mark)

i.    What principle have you proven in this case?                                                (1 mark)

j.   Both companies are now evaluating a project that requires an initial investment of $1.15 million and that will yield cash inflows of $500,000 per year for the next three years. Assume that this project has the same risk level as the individual firm’s assets. Should Q invest in this project? Should R invest in this project?                                                                                                                               

k. Based on your results for part (j), discuss the effects of leverage and its tax shields effects on the future value of the two firms.                                 (1 mark)

You are planning to purchase a new car explain whether it is to your advantage to lease or buy your new car, and why. What did you have to consider about your personal circumstances before making this decision? What are the potential drawbacks of your decision?

1. One argument for high dividend payout is the desire of investors for current income. Explain why this argument does/does not work in a perfect capital market with no transaction costs. Explain how this argument does/does not work in real life.

​(Operating leverage​) The Quarles Distributing Company manufactures an assortment of cold air intake systems for​ high-performance engines. The average selling price for the various units is ​$600 . The associated variable cost is ​$400 per unit. Fixed costs for the firm average $ 190 comma 000 annually. a. What is the​ break-even point in units for the​ company? b. What is the dollar sales volume the firm must achieve to reach the​ break-even point? c. What is the degree of operating leverage for a production and sales level of 5 comma 000 units for the​ firm? (Calculate to three decimal​ places.) d. What will be the projected effect on earnings before interest and taxes if the​ firm's sales level should increase by 50 percent from the volume noted in part ​(c​)?

Bahamas Inc. is experiencing rapid growth. The company expects dividends to grow at 15 % per year for the next 4 years before leveling off at 6% into perpetuity. The required return on the company's stock is 11 percent. The dividend per share just paid was $1.25. 1) calculate the current market value of Bahamas Inc.'s stock. 2) calculate the expected market price of the share in one year. 3) calculate the expected dividend yield and capital gains yield expected at the end of the first year.

Review any current events/transactions that have taken place and have an opinion about them.

Describe 3 Business transactions in DETAIL. (M&A, IPO, stocks)

(​Break-even

analysis​)

You have developed the income statement in the popup​ window,

LOADING...

​, for the Hugo Boss Corporation. It represents the most recent​ year's operations, which ended yesterday. Your supervisor in the​ controller's office has just handed you a memorandum asking for written responses to the following​ questions:

a. What is the​ firm's break-even point in sales​ dollars?

b. If sales should increase by 35 ​percent, by what percent would earnings before taxes​ (and net​ income) increase?

a. What is the​ firm's break-even point in sales​ dollars?

​$26083606

​(Round to the nearest​ dollar.)

b. If sales should increase by 35 ​percent, by what percent would earnings before taxes​ increase by _______ ​(Round to two decimal​ places.)

question b please!

Sales   50,803,627
Variable costs   (21,878,000)
Revenue before fixed costs   28,925,627
Fixed costs   (14,851,000)
EBIT   14,074,627
Interest expense   (1,031,032)
Earnings before taxes   13,043,595
Taxes at 35%   (4,565,258)
Net income   ˜NI

The following table lists prices of Alphabet options in December 2015 when Alphabet stock was selling for $470.

Use the data in the table to calculate the payoff and the profits for investments in each of the following June maturity options, assuming that the stock price on the expiration date is $450. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

This is an exact screenshot of the question. This same question with different number was answer in the past on Chegg's website. This is all the info. Please pass this question to another Q&A expert if this continues to be a problem. Thanks

eBook Problem 4-14 Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0 = 0. Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.) Year Cash Stream A Cash Stream B 1 $100 $300 2 400 400 3 400 400 4 400 400 5 300 100 Stream A $ Stream B $ What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent. Stream A $ Stream B $

Carland, Inc., has a project available with the following cash flows. If the required return for the project is 7.5 percent, what is the project's NPV?

Year cash flow

0 -$254,000

1 $62,500

2 $86,400

3 $115,800

4   $67,300

5   - $11,600

The twenty-year bond yields 6.1% and has a coupon of 8.1%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price            $

b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Total return             %

New-Project Analysis

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,100,000, and it would cost another $17,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $565,000. The machine would require an increase in net working capital (inventory) of $15,000. The sprayer would not change revenues, but it is expected to save the firm $481,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 35%.

1. What is the Year 0 net cash flow?
   $
2. 
   
3. 
   
4. 
   
5. What are the net operating cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar.

   Year 1	$
   Year 2	$
   Year 3	$

6. 
   
7. What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)? Do not round intermediate calculations. Round your answer to the nearest dollar.
   $
8. 
   
9. 
   
10. 
    
11. If the project's cost of capital is 15 %, what is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar.
    $
    
    Should the machine be purchased?
    -Select-YesNo

Consider the following information:

a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.)

b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept?

c. If you use a cutoff period of three years, which projects would you accept?

d. If the opportunity cost of capital is 10%, which projects have positive NPVs?

e. “If a firm uses a single cutoff period for all projects, it is likely to accept too many short-lived projects.” True or false?

f-1. If the firm uses the discounted-payback rule, will it accept any negative-NPV projects?

f-2. Will it turn down positive-NPV projects?

The Bruin Stock Fund sells Class A shares that have a front-end load of 4.9 percent, a 12b-1 fee of 0.40 percent, and other fees of 1.24 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.85 percent, and other fees of 1.24 percent. Assume the portfolio return is 9 percent per year.

a. What is the value of $1 invested in each share class if your investment horizon is 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Investment Value

Class A

Class B

b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Investment Value

Class A

Class B