Please Convert yearly data to quarterly data on excel

Income Level

Canada United States

Year Annual Annual

2000 22750 59938

2001 23110 58609

2002 23580 57947

2003 25480 57875

2004 29530 57674

2005 34300 58291

2006 37890 58746

2007 41530 59534

2008 44930 57412

2009 43220 57010

2010 44480 55520

2011 47180 54673

2012 51080 54569

2013 52800 56479

2014 52190 55613

2015 47580 58476

2016 43940 60309

2017 43000

2018 44860

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $865 per set and have a variable cost of $425 per set. The company has spent $340,000 for a marketing study that determined the company will sell 70,600 sets per year for seven years. The marketing study also determined that the company will lose sales of 13,800 sets of its high-priced clubs. The high-priced clubs sell at $1,235 and have variable costs of $695. The company will also increase sales of its cheap clubs by 15,800 sets. The cheap clubs sell for $455 and have variable costs of $245 per set. The fixed costs each year will be $10,750,000. The company has also spent $2,900,000 on research and development for the new clubs. The plant and equipment required will cost $39,200,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,600,000 that will be returned at the end of the project. The tax rate is 24 percent, and the cost of capital is 12 percent. a. Calculate the payback period. (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. Calculate the NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate the IRR. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Payback period---- years b. NPV ------ c. IRR ----- %

You have just started a new job and your employer has enrolled you in KiwiSaver.

This is the first time you have been enrolled in KiwiSaver and you decide not to “opt out”.

You are interested in estimating how much your KiwiSaver fund could be worth when you retire.

You make the following assumptions:

• You have just turned 30 and will retire in exactly 35 years when you are 65.

• Your salary is $50,000 this year and you expect this to increase by 3% every year.

• You can choose to contribute either 3% or 8% of your salary into your KiwiSaver fund each year. https://www.kiwisaver.govt.nz/already/contributions/you/amount/

• Your employer must contribute 3% of your pay into your KiwiSaver fund each year. https://www.kiwisaver.govt.nz/already/contributions/employers/ You can ignore any tax implications and assume your account receives the full 3%. (KIWI SAVER ACC)

• You will be entitled to the annual member tax credit of $521.43 which will be credited into your KiwiSaver fund at the end of every year. https://www.kiwisaver.govt.nz/new/benefits/mtc/

• Your KiwiSaver fund will invest in a diversified portfolio of assets to earn a return on your investment. Of course, there is uncertainty around the actual annual rate of return that your fund will earn over the 35 years but you decide that 6% and 12% represent a good range of potential rates of return to conduct your analysis on.

• Regardless of the return earned, the manager of your KiwiSaver fund will charge a management fee of 1.0% at the end of each year, based on the opening balance of your fund each year.

• You will make no withdrawals or additional contributions (other than those mentioned above) to your fund until you retire in 35 years.

• For simplicity, assume that all contributions to your KiwiSaver fund are made once per year, at the end of the year. The first lot of contributions will be made in one year from today.

Construct a spreadsheet that will allow you to answer the following questions on Canvas.

How much will be in your KiwiSaver account when you retire if you contributed 3% of your salary and the fund earned 6%p.a.?

Options:

$484,003

452,419

$595,113

$395,485

$500,000

$475,375

Rentz Corporation is investigating the optimal level of current assets for the coming year. Management expects sales to increase to approximately $3 million as a result of an asset expansion presently being undertaken. Fixed assets total $1 million, and the firm plans to maintain a 60% debt-to-assets ratio. Rentz's interest rate is currently 10% on both short-term and long-term debt (which the firm uses in its permanent structure). Three alternatives regarding the projected current assets level are under consideration: (1) a restricted policy where current assets would be only 45% of projected sales, (2) a moderate policy where current assets would be 50% of sales, and (3) a relaxed policy where current assets would be 60% of sales. Earnings before interest and taxes should be 10% of total sales, and the federal-plus-state tax rate is 40%.

1. What is the expected return on equity under each current assets level? Round your answers to two decimal places.

Rogot Instruments makes fine violins and cellos. It has ​$1.9 million in debt​ outstanding, equity valued at ​$2.2 million and pays corporate income tax at rate 35 % . Its cost of equity is 10 % and its cost of debt is 6 % .

a. What is​ Rogot's pretax​ WACC? (Round by two decimals)

b. What is​ Rogot's (effective​ after-tax) WACC? (Round by two decimals)

You are the financial manager of the Crossrail 1 project in London. The Board overseeing the project, acting on behalf of the UK Government, has asked you to provide a financial analysis of the project for business planning purposes. With two years to go before the commencement of train operations, you have assembled the most recent estimates of the capital investment cost and net revenues, which were forecast 1 year ago. While the user benefits and ticket revenues are assumed to remain the same each year of the 60-year useful life, it is anticipated that maintenance costs will be higher in the final 30 years of the project. They are shown in Table 1.

For projects such as Crossrail 1, the UK Government typically estimates a 60-year useful life and uses a discount rate of 3.5%.

a) What is the net present value (NPV) of the project?                            [ Select ]                       ["£15.04", "£8.83", "£7.36", "£16.76"]      

b) What is the payback period of the project?                            [ Select ]                       ["13.04", "8.22", "17.60", "7.49"]      

c) What is the internal rate of return (IRR) of the project?                            [ Select ]                       ["7.57%", "7.35%", "5.44%", "6.52%"]      

d) Based on your calculations is Crossrail 1 a viable project at the discount rate?                            [ Select ]                       ["Yes", "No"]      

You have been asked by the Board to present an analysis that incorporates more recent cash flow information about the Crossrail 1 project. Before the project becomes operational, the capital investment has been given a worse scenario estimate that is 35% above the forecast in table 1. The Board would like to see the analysis if the net cash inflows will also be 35% below expectation over the 60-year life whether under the existing hurdle rate of 3.5% it would remain viable.

a) What is the net present value (NPV) of the project?                            [ Select ]                       ["-£2.16", "£4.78", "£3.20", "-£1.80"]      

b) What is the internal rate of return (IRR) of the project?                            [ Select ]                       ["2.72%", "3.10%", "1.79%", "0.67%"]      

c) Based on your calculations is Crossrail 1 a viable project at the discount rate?                             [ Select ]                       ["Yes", "No"]      

John is a middle aged executive for a small company. They treat him well, but, unfortunately, cannot pay what he believes he is worth. Recently, he applied to a large international corporation for an executive position. After a phone interview, which went well, the prospect employer set up an interview at their corporate offices. They then e-mailed John a series of questions which would be part of their second interview. Surprisingly, there were several questions as to what cable television news shows he regularly watches and the magazines and/or subscriptions he receives either online or through the mail.

John considers himself an independent and does not belong to any one party. He, however, favors cable news shows that are considered liberal and receives an online subscription to The New Republic and New Yorker. If he admits to this information, he worries he will be “painted” as a liberal, a radical, or at least an intellectual. Although this information should NOT be important to his future job, the company would not ask these questions unless they had a reason for this information.

Therefore, John decides to lie to the interviewing committee and indicate he rarely watches cable news shows and mostly watches the sports networks and the movie channel with his wife.

Is John’s conduct wrong? Is it unethical to lie to obtain employment when you know the provided information will not affect your work product? After he is hired, should he “confess” he watches some cable news shows?

What do you do? What are your choices?

The Warren Watch Company sells watches for $21, fixed costs are $165,000, and variable costs are $11 per watch.

lower

higher

1. What is the firm's gain or loss at sales of 9,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.
   $ ?
   
   What is the firm's gain or loss at sales of 18,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent.
   $?
2. 
   
3. What is the break-even point (unit sales)? Round your answer to the nearest whole number.
   ? units
4. 
   
5. What would happen to the break-even point if the selling price was raised to $32?
   unchanged
6. What would happen to the break-even point if the selling price was raised to $32 but variable costs rose to $25 a unit? Round your answer to the nearest whole number.
   -Select-The result is that the break-even point remains unchanged. The result is that the break-even point increases. The result is that the break-even point decreases.

Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $17 million in invested capital, has $3.4 million of EBIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 12% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure.

1. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.
   
   ROIC for firm LL is ? %
   ROIC for firm HL is ? %
2. Calculate the rate of return on equity (ROE) for each firm. Round your answers to two decimal places.
   
   ROE for firm LL is ? %
   ROE for firm HL is ? %
3. Observing that HL has a higher ROE, LL's treasurer is thinking of raising the debt-to-capital ratio from 30% to 60% even though that would increase LL's interest rate on all debt to 15%. Calculate the new ROE for LL. Round your answer to two decimal places.
   ? %

Suppose there are no taxes. Firm ABC has no​ debt, and firm XYZ has debt of $4,000 on which it pays interest of 10% each year. Both companies have identical projects that generate free cash flows of $4,700 or $4,200 each year. After paying any interest on​ debt, both companies use all remaining free cash flows to pay dividends each year.

a. In the table​ below, fill in the debt payments for each firm and the dividend payments the equity holders of each firm will receive given each of the two possible levels of free cash flows.

b. Suppose you hold 10% of the equity of ABC. What is another portfolio you could hold that would provide the same cash​ flows?  

c. Suppose you hold 10% of the equity of XYZ. If you can borrow at 10%​, what is an alternative strategy that would provide the same cash​ flows?

Suppose there are two one-year assets. You cannot buy a fractional portion of either asset. Asset A costs $100 to buy and in one year pays a total of either $120 or $90, with equal probability. Asset B costs $200 to buy and in one year pays a total of either $180 or $240. When Asset A pays $120, Asset B pays $180 (and when Asset A pays $90, asset B Pays $240). You buy two of Asset A and one of asset B. What is the standard deviation of the rate of return on your investment? (Hint: define a new asset C = 2A +B). Express your answer in decimal form without a percent sign and rounded and accurate to 4 decimal place.

Slight challenge question with a twist on the return measurement problems. If you understand how to set up an equation to solve for the annualized dollar-weighted return you should be able to solve this question. Two years ago you opened a new investment account and invested $9,000 at that time. Six months later you withdrew $1,000, and then one year after that withdrawal you invested an additional $2000. There were not other deposits and withdrawals, and today the balance $X. If the annualized dollar-weighted return was 8%, what is X? Round and express your answer to the nearest dollar.

(Weighted average cost of capital—weights) A company has the following right-hand side of its balance sheet:
Bonds payable = $250,000

Preferred stock (1000 shares) = $100,000

Common stock (200,000 shares) = $400,000

--------------------------------------------------------------

Total Liabilities + Equity = $750,000
Bonds payable are currently priced at 115 (115% of face value) in the market, preferred stock is selling at $70 per share, and common stock is selling at $20 per share. Management has announced that it is targeting a capital structure composed of 65% debt and 35% equity. Of the equity, 10% is to be preferred stock, with the remainder common stock. Calculate the weights to be used in the weighted average cost of capital calculation if the weights are based on:

a. The company’s book values

b. The company’s market values

c. Management’s target capital structure

d. If management’s target weights were not known, which of the other two weighting schemes would you use? Why?