Cincinnati Company has decided to put $30,000 every year for next 3 years, $25000 for year 4, 5 and 6, and $40000 for year 7, 8, 9 and 10 in a pension fund. The fund will earn interest at the rate of 6% per year. Illustrate the timeline for the project and volume of money available in pension fund after 10 years.
In: Finance
A 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay him $5,000 a year to T for the rest of T’s life. How much income will he include in his personal income tax return as a result of receiving the $5,000 payment
in 2020? _____________
In 2050? ______________
In: Accounting
Hampton Industries had $47,000 in cash at year-end 2015 and $10,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $270,000. Cash flow from financing activities totaled +$150,000. Round your answers to the nearest dollar, if necessary.
$
In: Finance
[Q14-17] Your firm has a free cash flow of $300 at year 1, $360
at year 2, and $864 at year 3. After three years, the firm will
cease to exist. As of today (i.e. at year 0), the firm is partially
financed with a 1-year maturity debt, whose face value is $660 and
interest rate is 10%. After the debt matures at year 1, the firm
will not issue any more debt and will remain unlevered. Assume that
the firm’s unlevered cost of capital is 20%, and the firm’s cost of
debt is identical to the interest rate on the debt (i.e. 10%). The
corporate tax rate is 40%.
1. What is the firm’s enterprise value if the firm were
unlevered?
|
A. $1,524 |
||
| B. |
$1,012 |
|
| C. |
$1,000 |
|
| D. |
$1,024 |
2. What is the discount rate for the interest tax shield?
| A. |
Cost of unlevered equity |
|
| B. |
WACC |
|
| C. |
Cost of debt |
|
| D. |
Cost of levered equity |
3. What is the present value of the interest tax shield?
| A. |
$24 |
|
| B. |
$12 |
|
| C. |
$33 |
|
| D. |
$66 |
4. What is the firm’s enterprise value?
| A. |
$1,524 |
|
| B. |
$1,024 |
|
| C. |
$1,000 |
|
| D. |
$1,012 |
In: Finance
On July 1, Year 1, Danzer Industries Inc. issued $25,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $20,001,500. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
For all journal entries: If an amount box does not require an entry, leave it blank.
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.
| Year 1 July 1 | |||
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)
| Year 1 Dec. 31 | |||
b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)
| Year 2 June 30 | |||
3. Determine the total interest expense for
Year 1.
$
In: Accounting
| 1. |
|
In: Accounting
Scenario: You are the parent of a 13-year-old son and a 17-year-old daughter. You and your spouse have recently decided to obtain a divorce. The decision is that you will retain custody of the children and your spouse will have them every other weekend. Your spouse will be moving out this coming weekend. Now the children have to be told. Using your knowledge about individual differences in susceptibility for the development of adverse outcomes discuss how you will tell your children about the divorce?
List the factors to be considered in the conversation
Provide specific examples that reflects your conversation with a 13-year old and a 17-year old.
In: Psychology
4.44 Heights of 10 year olds: Heights of 10
year olds, regardless of gender, closely follow a normal
distribution with mean 55 inches and standard deviation 6
inches.
(a) What is the probability that a randomly chosen 10 year old is
shorter than 48 inches?
____ (please round to four decimal places)
(b) What is the probability that a randomly chosen 10 year old is
between 60 and 65 inches?
(please round to four decimal places)
(c) If the tallest 10% of the class is considered "very tall", what
is the height cutoff for "very tall"?
inches ____ (please round to two decimal places)
(d) The height requirement for Batman the Ride at Six Flags Magic
Mountain is 54 inches. What proportion of 10 year olds cannot go on
this ride?
____ (please round to four decimal places)
In: Statistics and Probability
Cougar Athletics is soliciting bids on a 3-year contract to produce 3,000 t-shirts per year to be given away at athletic events. You have decided to bid on the contract. It will cost you $3 per shirt in variable costs (buying plain t-shirts and paying an employee to imprint them) and $5,000 per year in fixed costs. A t-shirt printing machine will cost $7,500. The machine will be depreciated to zero over its 3-year life and it will not have any salvage value. There are no net working capital implications for the project. If your tax rate is 20% and your required return on this project is 10%, how much would you bid for the contract? State your answer in the total price, not the per-unit price.
In: Finance
|
1. Grohl Co. issued 13-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price? |
$630.76
$1,727.34
$1,010.00
$1,000.00
$1,005.00
2.
|
Ngata Corp. issued 16-year bonds 2 years ago at a coupon rate of 9.7 percent. The bonds make semiannual payments. If these bonds currently sell for 96 percent of par value, what is the YTM? |
11.27%
5.12%
9.22%
10.24%
12.29%
3.
|
Ashes Divide Corporation has bonds on the market with 17 years to maturity, a YTM of 6.4 percent, and a current price of $1,326.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round your intermediate calculations.) |
9.58%
14.48%
19.21%
7.22%
9.68%
In: Accounting