Questions
An analyst is trying to value KL’s stock. The analyst has collected data from the company...

  1. An analyst is trying to value KL’s stock. The analyst has collected data from the company and other sources to prepare the below financials, both actual and projected. Based upon these sources, the analyst expects the company’s free cash flows to grow at 8% in 2019, 6% in 2020, and at 4% on average thereafter. The analyst has estimated the company’s cost of capital to be 12.01%. Given this and the below information, what is the value of the firm? What is a reasonable estimate of its appropriate share price today assuming that there are 10,000,000 shares issued and outstanding?

Income statement for the fiscal year ending January 1 (Millions of dollars)

                                                 2017 (Actual)

2018 (Projected)

Net Sales

$400.0

$430.0

Costs

260.0

283.5

Depreciation

37.5

42.5

Earnings before interest and taxes

102.5

104.0

Interest expense

14.1

16.0

Earnings before taxes

88.4

89.9

Taxes (40%)

35.36

35.2

Net income before preferred dividends

53.04

52.8

Preferred dividends

6.0

6.5

Net income

47.04

46.3

Common dividends

37.632

38.2

Addition to retained earnings

9.0408

8.1

Balance sheets for the fiscal year ending January 1 (Millions of dollars)

                                              2017 (Actual)

2018 (Projected)

Cash

$6.3

$6.6

Marketable Securities

40.9

37.128

Accounts Receivable

62.0

66.0

Inventories

107.0

115.5

Net plant & equipment

391.0

415.36

Total Assets

607.2

640.58

Accounts payable

9.6

12.1

Accruals

25.5

29.1

Long-term bonds

210.7

227.78

Preferred Stock

55

57.1

Common Stock (Par plus PIC)

160.0

160.0

Retained earnings

146.4

154.5

Total Liabilities & Equity

607.2

640.58

In: Finance

I am trying to start saving for retirement. I am investing all my cash into the...

I am trying to start saving for retirement. I am investing all my cash into the S&P 500, which will assume consistently 9.8% interest, compounded annually. I initially put a lump sum of $100 into my account, and I will deposit $10 every second week.

a) After 10 years, how much money will I have invested?

b) After 10 years, if I sold all of my stocks, how much money will I have in my account?

c) After 25 years, how much money have I invested?

d) If I had not sold my stocks at the 10 year mark and instead held onto them an additional 15 years before selling, how much additional money would I have in my account?

In: Finance

A construction company has 3 categories of casual workers. Category A,B and C. Workers in categories...

A construction company has 3 categories of casual workers. Category A,B and C. Workers in categories A are paid 1000 per day for first 25 days, you are paid 800 per day for less than 25 days, any extra day after 25th you are paid 1200 per day. In categorie B you are paid 800 per day if you work for 25 days otherwise you are paid 600 per day if you work for less than 25 days . 1000 per day for any day after 25th.
Category C 600 per day for 25 days , 400 per day for days before 25 days and 800 per day for days after 25th day

Question
1.write an algorithm
2. Translate to flowchart
3. Translate into actual program using C++

In: Computer Science

A construction company has 3 categories of casual workers. Category A,B and C. Workers in categories...

A construction company has 3 categories of casual workers. Category A,B and C. Workers in categories A are paid 1000 per day for first 25 days, you are paid 800 per day for less than 25 days, any extra day after 25th you are paid 1200 per day. In categorie B you are paid 800 per day if you work for 25 days otherwise you are paid 600 per day if you work for less than 25 days . 1000 per day for any day after 25th.
Category C 600 per day for 25 days , 400 per day for days before 25 days and 800 per day for days after 25th day

Question
1.write an algorithm
2. Translate to flowchart

In: Computer Science

In a test of the effectiveness of garlic for lowering​ cholesterol, 45 subjects were treated with...

In a test of the effectiveness of garlic for lowering​ cholesterol, 45 subjects were treated with garlic in a processed tablet form. Cholesterol levels were measured before and after the treatment. The changes in their levels of LDL cholesterol​ (in mg/dL) have a mean of 4.2 and a standard deviation of 19.6.

Answer the following​ (round as​ indicated).

A. What is the best point estimate of the population mean net change in LDL cholesterol after the garlic​ treatment?

The best point estimate is ??? ​mg/dL.

​(Type an integer or a​ decimal.)

B. Construct a 90​% confidence interval estimate of the mean net change in LDL cholesterol after the garlic treatment. What does the confidence interval suggest about the effectiveness of garlic in reducing LDL​ cholesterol?

What is the confidence interval estimate of the population mean μ​?

?? ​mg/dL < μ < ?? mg/dl

​(Round to two decimal places as ​needed.)

In: Statistics and Probability

From the reference frame of the Earth, a 0.0500-kilogram ball moving in the +x direction at...

From the reference frame of the Earth, a 0.0500-kilogram ball moving in the +x
direction at 4.0 m/s overtakes and collides with a 0.1000-kg ball moving in the +x direction
at 2.0 m/s. Assume that the collision is perfectly elastic, with all motion after the collision
also along the x axis, and that the balls are moving on a horizontal, friction-less surface.
Only Galilean relativity is needed for this problem.

(1) Calculate the speed and directions of each ball after the collision. Hint: use energy
and momentum conservation.

(2) Use Galilean transformations to determine the velocities of each ball as measured in
the reference frame of the 0.0500-kg ball, both before and after the collision.

(3) Using your velocities from part (b), explicitly determine whether total energy and
momentum are conserved in the 0.0500-kg ball's reference frame.

In: Physics

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $75,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $75,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 10 percent on her investments.

a. What is the after-tax cost if Isabel pays the $75,000 bill in December?

    

  

b. What is the after-tax cost if Isabel pays the $75,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.)

     



c. Based on requirements a and b, should Isabel pay the $75,000 bill in December or January?

    

  • December

  • January

In: Accounting

On October 31, GRANGER Corporation’s liabilities totalled $201,000. Its shareholders’ equity consisted of 88,900 common shares...

On October 31, GRANGER Corporation’s liabilities totalled $201,000. Its shareholders’ equity consisted of 88,900 common shares issued, $889,000 and retained earnings, $260,000. GRANGER is considering the following three courses of action: (1) paying a $0.50 cash dividend, (2) declaring a 11% stock dividend, or (3) effecting a 3-for-1 stock split. The current market price for its common shares is $15 per share.

Complete the following tabular summary of the effects of the alternative actions on GRANGER’s shareholders’ equity and number of common shares.

(1)             (2)             (3)
Before Action           After Cash Dividend             After Stock Dividend            After Stock Split
Total assets            $1,350,000              $                       $                       $        
Total liabilities               $201,000                $                       $                       $        
Common shares           889,000                                                                  
Retained earnings               260,000                                                                  
Total shareholders' equity              1,149,000                                                                        
Total liabilities and shareholders’ equity              $1,350,000              $                       $                       $        
Number of common shares         88,900  

In: Accounting

PLEASE BE DETAILED AND SHOW THE CALCULATIONS OF THE ANSWERS A company is determined to purchase...

PLEASE BE DETAILED AND SHOW THE CALCULATIONS OF THE ANSWERS

A company is determined to purchase a special tool at a cost of $ 9,000. This team will generate savings amounting to $ 3,000 the first year, with an increase of $ 500 per year until the end of the fifth year. The company uses the MACRS depreciation method. Consider a 21% tax rate.

  1. Complete the following table to determine the after-tax cash flow

Years

Cash flow before taxes

Depreciation rates

MACRS depreciation

Taxable income

Tax amount

Cash flow after tax

0

1

2

3

4

5

b)      Consider that the tool was sold for $ 2,500 at the end of the fifth year. Recalculate flow cash after-tax taking into account the sale of the asset. (Only fifth year)

c)        If the equipment sold for $ 30,000 in the third year, determine the loss or recapture of corresponding depreciation.

In: Finance

You are a financial advisor and get the following question from one of your cllients M''...

You are a financial advisor and get the following question from one of your cllients M'' spoue and I each 62 and hope to retire in three year . After requirement we will received $7500 per month after taxes from our employees pension plans and $1500 per month after from the social security .Unfortunately , our monthly expenses are $15000.Our social obligation preclude further economies . We have $1000,000 invested in a high grade ,tax-free municipal -bond fund form. The return on the fund is 3.5% per year .We plan to make annual withdrawer from the mutual fund to cover the different between our pension nd social security income and our living expense .How year before we run out of money what do we tell our client?

In: Finance