You bought one of Great White Shark Repellant Co.’s 11 percent coupon bonds one year ago for $780. These bonds make annual payments and mature 7 years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 13 percent. If the inflation rate was 3 percent over the past year, what was your total real return on investment?

Consider the following abbreviated financial statements for Cabo Wabo, Inc.:
  

a. What is owners’ equity for 2015 and 2016? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
  

b. What is the change in net working capital for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Change in net working capital            $

c. In 2016, the company purchased $5,941 in new fixed assets. The tax rate is 30 percent.

1. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Fixed assets sold            $

2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets            $

d. During 2016, the company raised $1,885 in new long-term debt.

1. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to creditors            $

2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Debt retired            $

Financing Deficit Garlington Technologies Inc.'s 2016 financial statements are shown below: Balance Sheet as of December 31, 2016 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180,000 Fixed assets 1,440,000 Total current liabilities $ 696,000 Common stock 1,800,000 Retained earnings 204,000 Total assets $2,700,000 Total liabilities and equity $2,700,000 Income Statement for December 31, 2016 Sales $3,600,000 Operating costs 3,279,720 EBIT $ 320,280 Interest 18,280 Pre-tax earnings $ 302,000 Taxes (40%) 120,800 Net income 181,200 Dividends $ 108,000 Suppose that in 2017 sales increase by 10% over 2016 sales and that 2017 dividends will increase to $170,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 10%, 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. Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 Sales $ Operating costs $ EBIT $ Interest $ Pre-tax earnings $ Taxes (40%) $ Net income $ Dividends: $ Addition to RE: $ Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 Cash $ Receivables $ Inventories $ Total current assets $ Fixed assets $ Total assets $ Accounts payable $ Notes payable $ Accruals $ Total current liabilities $ Common stock $ Retained earnings $ Total liabilities and equity $

Lucas Corp. has a debt-equity ratio of .9. The company is considering a new plant that will cost $108 million to build. When the company issues new equity, it incurs a flotation cost of 7.8 percent. The flotation cost on new debt is 3.3 percent.

a. What is the initial cost of the plant if the company raises all equity externally? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

b. What is the initial cost of the plant if the company typically uses 60 percent retained earnings? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

c. What is the initial cost of the plant if the company typically uses 100 percent retained earnings? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

Please find the answer for the Payback Period, Discounted Payback, NPV, IRR for Project One. Explain how to get the answer
.

PRO FORMA INCOME STATEMENT

At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars):

Looking ahead to the following year, the company's CFO has assembled this information:

• Year-end sales are expected to be 14% higher than the $3 billion in sales generated last year.
• Year-end operating costs, excluding depreciation, are expected to equal 80% of year-end sales.
• Depreciation is expected to increase at the same rate as sales.
• Interest costs are expected to remain unchanged.
• The tax rate is expected to remain at 40%.

On the basis of that information, what will be the forecast for Roberts' year-end net income? Enter your answer in millions. For example, an answer of $25,000,000 should be entered as 25. Round your answer to two decimal places.

$___ million

Frank's Cargo Corp has 100,000 outstanding bonds paying $30 twice a year. Today, the bonds sell for $900 and will mature in five years. If the market rate is 12%, the risk-free rate is 2%, and the marginal tax rate is 30%, what is the cost of debt capital for Frank's Cargo Corp?

Making an investment (FV Function): long term

You told Jane about your calculation result and Jane is very impressed by your ability of using the FV function. She says that she would like to save more. Now she wants to know if she is able to deposit $3,000.00 in a mutual fund account each year as a lump sum, and let it grow for 30 years, how much money would she receive at the end of 30 years.

Before she makes a decision about how much she would deposit for each year, she wants to do a comparison about how the initial deposit amount affect the end result. She figures out that she would be able to make the deposit between $2000 and $5000 each year. She will make the deposit at the beginning of each year.

She asks you to calculate this for her. Since the return (rate) of the mutual fund varies, sometimes it could be negative, we will just assume that the rate varies from 3.5% to 8%. Therefore, in your calculation, you need to include the following annual interest/return rate: 3.5%, 4%, 4.5%, 5%, 5.5%, 6%, 6.5%, 7%, 7.5%, 8%.

For the principal/deposit for each year, you will need to include: $2,000, $3,000, $4,000, $5000.

Use a table to calculate how much Jane would receive at the end of 30 years for different deposit amount and rates.

You must use the FV function.

You must use proper cell reference. You will set up the formula one Excel cell in such a way that you can drag and fill out the rest of the table.

Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2016, is shown here (millions of dollars): Cash $ 3.5 Accounts payable $ 9.0 Receivables 26.0 Notes payable 18.0 Inventories 58.0 Line of credit 0 Total current assets $ 87.5 Accruals 8.5 Net fixed assets 35.0 Total current liabilities $ 35.5 Mortgage loan 6.0 Common stock 15.0 Retained earnings 66.0 Total assets $122.5 Total liabilities and equity $122.5 Sales for 2016 were $475 million and net income for the year was $14.25 million, so the firm's profit margin was 3.0%. Upton paid dividends of $5.7 million to common stockholders, so its payout ratio was 40%. Its tax rate was 40%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2017. Do not round intermediate calculations. If sales are projected to increase by $80 million, or 16.84%, during 2017, use the AFN equation to determine Upton's projected external capital requirements. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ million Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places. % Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2017. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt). Assume Upton's profit margin and dividend payout ratio will be the same in 2017 as they were in 2016. What is the amount of the line of credit reported on the 2017 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2017 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Round your answers to the nearest cent. Upton Computers Pro Forma Balance Sheet December 31, 2017 (Millions of Dollars) Cash $ Receivables $ Inventories $ Total current assets $ Net fixed assets $ Total assets $ Accounts payable $ Notes payable $ Line of credit $ Accruals $ Total current liabilities $ Mortgage loan $ Common stock $ Retained earnings $ Total liabilities and equity $

Filer Manufacturing has 5,336,582 shares of common stock outstanding. The current share price is $27.73, and the book value per share is $8.17. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $58,377,375, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $77,610,198, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par.

The most recent dividend was $1.69 and the dividend growth rate is 0.05. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.38.

What is Filer's aftertax cost of debt? Enter the answer with 4 decimals

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 5% over 2016 sales and that 2017 dividends will increase to $170,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 13%, 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.

I need help to calculate--addition to RE on income statement.....i have calculated the rest of the numbers.

Problem 12-09
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 5% over 2016 sales and that 2017 dividends will increase to $118,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 14%, 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.

1. Construct profit diagrams at expiration time to show what position in IBM puts, calls and/or underlying stock best expresses the investor’s objectives described below.

   IBM currently sells for $150 so that profit diagrams between $100 and $200 in $10 increments are appropriate. Also assume that at-the-money puts and calls currently

cost $20 each. The call with strike $140 costs $25 and the call with strike $160 costs $17.

1. (a) An investor wants to benefit from IBM price drops, but does not want to lose more than $20 on the investment.

2. (b) An investor wants to capture profits if IBM price declines and losses if IBM price increases. The investor wants to break even if IBM price does not change.

3. (c) An investor wants to bet that the upcoming IBM earnings announcement is very close to market expectations—meaning that the price will not move by more than $10 dollars.

Explain why shareholder wealth as a singular, overarching goal is flawed.