Questions
1 )The following table shows type of franking credit and amount of dividend for two companies....

1 )The following table shows type of franking credit and amount of dividend for two companies. Your task is to calculate the amount of franking credit and price per share on ex-dividend date. Show your workings by writing down the formula where appropriate.

Name

Company X

Company Y

Franking Credits

Fully Valued

No value

Current Share Price

$30

$25

Dividend per share announced

$1

$1.50

Tax rate

30%

30%

Franking Credit

?

?

Share Price on Ex-Dividend Date

?

?

2) The manager of Dynamix Corporation is planning to investment in a factory that will produce X-ray machines. The cost of the project will be around $20 Million. The manager has the following options to raise funding for the factory. Your task is to explain clearly how the manager will go about choosing the funding source. Explain your answer in detail.

Funding Source

$(Million )

Issuing Shares

50

Retained Earnings

10

Bank Loan

30

3) From the figures outlined in the table below for fossom foods, calculate the Weighted Average Cost of Capital (WACC).

Cost of debt capital

0.10

Corporate tax rate

0.30

Market value of debt

$20 000 000

Cost of equity capital

0.20

Market value of fossom foods

$40 000 000

In: Accounting

please show your work and write out your solutions in detail by giving formulas and a...

please show your work and write out your solutions in detail by giving formulas and a short summary at the end. Please do not just post about financial calc or excel without explaining how you got the answer. thank you!

Consider the following mutually exclusive projects:

T=0

1

2

3

Project X:

-100

20

30

90

Project Y:

-100

80

30

20

  1. Find IRRs for both projects.
  2. Find the cross-over rate.
  3. Construct a graph, where you will show the NPV of each project as a function of its discount rate (i.e NPV on the vertical axis and r on the horizontal axis). Both NPVs should be on the same graph. This graph is the NPV schedule.
  4. Please describe as fully as possible which project is the best and under which circumstances.

In: Accounting

Explain, in detail four major socio-economic trends that are impacting the food service-industry today? Explain, how...

Explain, in detail four major socio-economic trends that are impacting the food service-industry today?
Explain, how the proper organization and scheduling of a cleaning and sanitation program ensures the safety of the food, the workers, and the consumers.

In: Nursing

Explain in detail the process of meiosis including the significance of tetrad formation, crossing over, and...

Explain in detail the process of meiosis including the significance of tetrad formation, crossing over, and the Law of Independent Assortment in maintaining chromosome number and genetic variability. Explain the key features that make it different from mitosis.

In: Anatomy and Physiology

How does fluoroscopy work? (to answer this properly you will need to draw a diagram and...

How does fluoroscopy work? (to answer this properly you will need to draw a diagram and explain how it works; brief answers won't be acceptable). Be sure to explain in detail how the image intensifier works. Assu

In: Physics

Why is the goal of wealth maximization is superior than the goal of profit maximization. Also...

Why is the goal of wealth maximization is superior than the goal of profit maximization. Also explain why profit maximization is a short run goal and wealth maximization is long run goal.
please explain in detail.

In: Finance

“Bankrupt” Corporation is in a deep financial crisis. You are one of the financial avengers “Bankrupt”...

“Bankrupt” Corporation is in a deep financial crisis. You are one of the financial avengers “Bankrupt” is desperately seeking help from. CEO of the company informed you that he is considering the two risky projects “Thanos” and “Loki” to protect the firm from financial collapse. Both projects have similar risk characteristics. Bankrupt’s WACC is 11%. The initial investments for both the projects are $200 million. Cashflow from the projects are as follows;

Year           1                2                3                4

Thanos       10M           60M           80M           160M

Loki           70M           50M           20M           160M

Now, your job is to explain the following questions in great detail so that the CEO understands your plans to protect the firm.

  1. Explain your decision when Thanos and Loki are mutually exclusive, and when they are independent.
  2. WACC has increased to 15%. What change you will see in NPV?
  3. What is IRR and how it is different from NPV? What is the IRR for Thanos and Loki? Based on IRR which project you should accept?
  4. How is IRR identical to Bond’s YTM?

In: Finance

What is the function of a centromere? Draw the correct order of the steps of mitosis,...

  1. What is the function of a centromere?
  2. Draw the correct order of the steps of mitosis, label them, and state what occurs in each (this should not be a picture from the internet)?
  3. Why is apoptosis required to balance mitosis?
  4. What is binary fission?
  5. What are cell cycle check-points?
  6. What are the difference between proto-oncogenes and tumor suppressor genes? How to these impact the cell cycle?
  7. What are some life styles choices that can increase your risk of cancer? How about decrease?

In: Biology

Retention of Health Information The topic of discussion this week is retention of health information. Pick...

Retention of Health Information

The topic of discussion this week is retention of health information. Pick a state, not necessarily the one you live in now, and use the Internet to research the retention requirements for the state you picked. Write a brief analysis of the retention requirements making sure to include health records, radiology films, death records, and other health record types and formats (i.e. electronic). How do you feel about the requirements? Too restrictive? Not restrictive enough?

In: Nursing

Explain the relationship of time value and options, how does it affect pricing of options, how...

Explain the relationship of time value and options, how does it affect pricing of options, how it is looked at in business etc. Make sure to discuss the time value of money and its mathematical calculations.

Explain how options prices are derived? What are ALL the factors that affect options prices?

What are the advantages and disadvantages of trading options instead of equities? be detailed and include them all.

Describe in detail the two kinds of options contracts that exist, also describe the advantages and disadvantages of each?

In: Finance