Colter Steel has $5,550,000 in assets. Temporary current assets $ 3,100,000 Permanent current assets 1,605,000 Fixed assets 845,000 Total assets $ 5,550,000 Short-term rates are 9 percent. Long-term rates are 14 percent. Earnings before interest and taxes are $1,170,000. The tax rate is 40 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be?

Consider a project to supply 100 million postage stamps per year to Canada Post for the next five years. You have an idle parcel of land available that cost $850,000 five years ago; if you sold the land today, it would net you $1,080,000 after tax. If you sold the land five years from now, the land can be sold again for a net $1,150,000 after tax. You will need to install $4.6 million in new manufacturing plant and equipment to actually produce the stamps. The equipment qualifies for a CCA rate of 30% and can be sold for $400,000 at the end of the project. You will also need $600,000 in initial net working capital for the project, and an additional investment of $50,000 every year thereafter. Your production costs are 0.45 cents per stamp, and you have fixed costs of $1,200,000 per year. If your tax rate is 34% and your required return on this project is 12%, what bid price should you submit on the contract? Answer to 5 decimal places

1. Today is Joan's 30th birthday. Assume that she deposits $3,400 today and $3,400 on each of her birthdays until she turns 60 (when she makes the last deposit) into an account earning 6%. She plans to withdraw equal amounts each year from the time she turns 65 until she is 80. Each withdrawal is $______.

please use financial calculator!!!!

Trend Analysis & Ratio Analysis

Ratio analysis uses percentage or decimal calculations of comparison to at least two different sets of financial data using two industries. Comparing how one relates (compares) to another. Be sure to provide website

How much money can be withdrawn each month for the next 20 years from an account containing $250,000 if the account is paying 4% compounded monthly?

You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 25%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions. Last year's sales = S0 $300.0 Last year's accounts payable $50.0 Sales growth rate = g 40% Last year's notes payable $15.0 Last year's total assets = A0* $500 Last year's accruals $20.0 Last year's profit margin = PM 20.0% Initial payout ratio 10.0% Select the correct answer a. $12.6 b. $10.6 c. $11.6 d. $9.6 e. $13.6

Assume that the net cash flow of a potential $7.25 million investment is $1.1 million in year 1, then $1.25 million in year 2, $1.4 million in year 3, $2.2 million in year 4 and year 5, and then sold at the end of year 5 for $850,000. Further assume that in each year cash flows (excluding initial investment) could be as much as $400,000 less than forecast, or $400,000 more than forecast. Suppose you assess the “low net cash flow” probability at 25 percent likely, the base (original) scenario at 50 percent likely, and the “high net cash flow” probability at 25 percent. The corporate cost of capital is 9 percent.

1. What is the worst case NPV? $ _____

- What is the best case NPV? $_____

-What is the expected NPV on the basis of the scenario analysis? $_______

1. Google will not pay out a dividend for two years (t=1 and t=2). For the next two years, they will pay out a dividend of $6.00 per share (t=3 and t=4). The dividend will grow at a rate of 5% per year every year after this. If the required rate of return of Google’s stock is 22%, Google’s stock price is $________.

What is the amount of interest earned in the 33rd semi-annual deposit interval of a sinking fund that is set up to pay back a debt of $220000 over 19 years? The fund earns 4.62% compounded semi-annually and the deposits are made semi-annually.

Parramore Corp has $12 million of sales, $2 million of inventories, $2 million of receivables, and $2 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 9% rate. Assume 365 days in year for your calculations. Do not round intermediate steps.

1. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places.
     days
2. 
   
3. If Parramore could lower its inventories and receivables by 12% each and increase its payables by 12%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.
     days
4. 
   
5. How much cash would be freed up, if Parramore could lower its inventories and receivables by 12% each and increase its payables by 12%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
6. 
   
7. By how much would pretax profits change, if Parramore could lower its inventories and receivables by 12% each and increase its payables by 12%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
   

A proposed cost-saving device has an installed cost of $645,000. The device will be used in a five-year project, but is classified as manufacturing and processing equipment for tax purposes. The required initial net working capital investment is $55,000, the marginal tax rate is 35%, and the project discount rate is 9%. The device has an estimated year 5 salvage value of $75,000. What level of pre-tax cost savings do we require for this project to be profitable? The CCA rate is 20%.

Financing Deficit

Garlington Technologies Inc.'s 2016 financial statements are shown below:

Balance Sheet as of December 31, 2016

Income Statement for December 31, 2016

Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $186,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 9%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.

Ximena is trying to get a mortgage loan of $170,000. The bank quotes her a 15-year rate of 5.6% and a 30-year rate or 7.5%. Both of these loans involve equal monthly payment.

a. What is monthly payment for the 15-year loan? What is the total interest paid?

b. What is the monthly payment for the 30-year loan? What is the total interest paid?

c. What is the APR for each option?