The possibility of a power outage seems to grow every year because of demand and an aging infrastructure. What can/should companies do to mitigate this risk?
In: Accounting
Molly and Mark are wife and husband and earned salaries this year of $12,000 and $64,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Mark and Molly also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Mark and Molly have a 10-year-old son, Matt, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matt. Mark and Molly paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. What is Molly and Mark’s gross income? What is Molly and Mark’s adjusted gross income? What is the total amount of Molly and Mark’s deductions from AGI? What is Molly and Mark’s taxable income? What is Molly and Mark’s taxes payable or refund due for the year (use the tax rate schedules)? Complete the first two pages of Molly and Mark’s Form 1040 (download forms from the IRS website). 2018 TAX LAW
In: Accounting
Suppose that a company is considering an investment in a new
product with a 5-year horizon (product will be sold for 5 years).
The upfront investment is $1 million and it is assumed to
depreciate on a straight-line basis for 5 years, with no residual
value. Fixed costs are assumed to be $50,000 per year. The company
estimates the variable cost per unit (v) to be $5 and expects to
sell each unit for $15. There are no taxes and the required rate of
return is 8% per year.
The company estimates that they will be able to sell 32,000 units
during the year under normal circumstances (base case), but they
believe that actual sales could be 10% lower than 32,000 (worst
case) or 10% higher than 32,000 (best case).
Base Case NPV =
Worst Case NPV =
Best Case NPV =
In: Finance
1. What would be the monthly payment on a 5 year loan of $35,000 if the interest rate is 6.0% compounded monthly?
2. Sarah bought a raft for $664 using her credit card. The interst rate is 0.186 compounded monthly. If she pays $23 a month, how long will it take her to pay off the credit card?
3. What would be the monthly payment on a 5 year loan of $24,000 if the interest rate is 5.0% compounded monthly?
In: Finance
In the year 2015, leaders from 193 countries of the world gathered and moderated by the United Nation and finally summarized that there are 17 goals for the world to be achieved in 2030 named as UNDP Sustainable Development Goals (SDG) towards 2030.
THIS IS THE LINK FOR 17 GOAL.
https://www.undp.org/content/dam/undp/library/corporate/brochure/SDGs_Booklet_Web_En.pdf
In: Civil Engineering
a. What is the duration of a two-year bond that
pays an annual coupon of 11.3 percent and has a current yield to
maturity of 13.3 percent? Use $1,000 as the face value. (Do
not round intermediate calculations. Round your answer to 4 decimal
places. (e.g., 32.1616))
b. What is the duration of a two-year zero-coupon
bond that is yielding 11.5 percent? Use $1,000 as the face
value.
In: Finance
The following is a list of selected information for Liverpool Co. for the fiscal year.
|
Forecasted Operations |
Sales with 30.00% Increase |
Unit Change |
|
|---|---|---|---|
| Sales in units (millions) | 200 | 260 | 60 |
| Earnings before interest and taxes (EBIT) | 4,000.00 | 5,600.00 | 1,600.00 |
| Less: Interest | (150.00) | (150.00) | (0.00) |
| Earnings before taxes | $3,850.00 | $5,450.00 | $1,600.00 |
| Less: Taxes (40%) | 1,540.00 | 2,180.00 | (0.00) |
| Net income | 2,310.00 | 3,270.00 | 960.00 |
| Earnings per share (20 million shares) | $115.50 | $163.50 | $48.00 |
You are an employee for Liverpool Co., and your boss needs help assessing the level of risk associated with the firm’s current financial position. Begin by calculating the degree of financial leverage for the change between forecasted operations and the operational increase of 30.00%.
0.60X
1.04X
0.42X
1.03X
Your boss says, “Looking good so far. However, I would like to know how we stack up against our strongest competitor, Everton Co.” Compare the degree of operating leverage of Everton Co. with that of Liverpool Co. and then answer the following question.
All else being equal, is Liverpool Co. more risky than, less risky than, or as equally risky as Everton Co., considering that the degree of financial leverage for Everton Co. is 1?
Not enough information given
More risky
Less risky
In: Finance
In a given year, a catchment with an area of 200 km2 received 1300 mm of rainfall. The average evaporative energy flux due to evapotranspiration was 45 Watts/m2. Assuming negligible change in soil and groundwater storage, and also negligible interception. Estimate the average rate for that year, for the river draining the catchment (in both mm/year and m3/s).
In: Civil Engineering
In a given year, a catchment with an area of 200 km2 received 1300 mm of rainfall. The average evaporative energy flux due to evapotranspiration was 45 Watts/m2. Assuming negligible change in soil and groundwater storage, and also negligible interception. Estimate the average rate for that year, for the river draining the catchment (in both mm/year and m3/s)
In: Civil Engineering
You will be receiving $25,000 at the end of each year for the next 20 years. If the correct discount rate for such a stream of cash flows is 10% then what is the present value of the cash flows?
In: Finance