(EBIT-EPS analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum cleaners and accessories. These stores would be located in Dallas, Houston, and San Antonio. To finance the new venture two plans have been proposed:
• Plan A is an all-common-equity structure in which $ 2.3 million dollars would be raised by selling 86,000 shares of common stock.
• Plan B would involve issuing $ 1.3 million in long-term bonds with an effective interest rate of 11.8 percent plus another $ 1.0 million would be raised by selling 43,000 shares of common stock. The debt funds raised under Plan B have no fixed maturity date, in that this amount of financial leverage is considered a permanent part of the firm's capital structure.
Abe and his partners plan to use a 38 percent tax rate in their analysis, and they have hired you on a consulting basis to do the following:
(Q) Find the EBIT indifference level associated with the two financing plans. (Round to the nearest dollar.)
In: Finance
Numeric responses must be either an integer (if exact) or a real number with three decimal places, with the least significant number rounded. Do not use commas. If there are units, the integer part must be between 1 and 999. Use the following units: Ohm, kOhm, mOhm resistors, etc. Conductances: S, mS, MS, etc. Voltage: V, kV, mV, MV, etc. Current: A, mA, kA, uA, nA, etc. Power: W, mW, kW, uA, pW, etc. Time: s, hrs, ks, ms, etc.
1. Voltage amplifiers are available with Avoc = 8 V / V, Rin = 1.8 kΩ, Ro = 850 Ω. With a 12 V DC power source, each amplifier consumes 1.5 mA average current.
a. How many amplifiers do you need to cascade to get at least a 1000 voltage gain with a load resistance of 1.0 kΩ?
b.What is the voltage gain Av obtained? (Respond with a rounded whole number)
c. For the cascade connection, find the open circuit voltage gain. (Respond with a rounded whole number)
d. If you have a 1.5 mV input, how efficient is the equivalent amplifier?
e. Find the transconductance of the entire circuit.
In: Electrical Engineering
There is a cost of money. When someone loans you money, they expect to profit (maybe just by your goodwill). Notice that car dealers and others who are financing what you buy will usually show you the monthly payments, and avoid talking about the full cost with interest. It would be helpful to calculate the monthly payments given the amount loaned, the interest rate, and the number of payments you are expected to make. In this assignment, you will implement one standard formula for computing monthly payments.
Set up and run java, javac, and an IDE (Eclipse) on your computer Create a class main method variables strings mathematical operators assignment operator input/output Eclipse IDE Develop a Loan Calculator (as a Java standalone application) to calculate and display the monthly payment for a loan. The user will be asked to enter the loan amount, the interest rate, and the number of payments. The formula used for such a calculation is: ??????? = ?????????? ∗ ( ( ???????????? ??.? ) (? − (? + ???????????? ??. ? ) −????????????????) ) For example, for a loan amount of $225,000 with the APR 10% and 360 payments, the monthly payment is: ??????? = ?????? ∗ ( ( ?? ??.? ) (?.? − (?.? + ?? ??.? ) −???) ) Payment, loan amount, APR, 12.0, and 1.0 are real numbers; whereas N=number of payments is an integer. If you wish to use other formulas, please feel free to use them.
In: Computer Science
Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $16 per share and has a beta of 0.9. There are 1 million common shares outstanding. The market risk premium is 11%, the risk-free rate is 7%, and the firm’s tax rate is 40%.
| BOOK-VALUE BALANCE SHEET | ||||||||
| (Figures in $ millions) | ||||||||
| Assets | Liabilities and Net Worth | |||||||
| Cash and short-term securities | $ | 1.0 | Bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 7%) |
$ | 5.0 | |||
| Accounts receivable | 3.0 | Preferred stock (par value $10 per share) | 3.0 | |||||
| Inventories | 7.0 | Common stock (par value $0.20) | 0.2 | |||||
| Plant and equipment | 21.0 | Additional paid-in stockholders’ equity | 11.8 | |||||
| Retained earnings | 12.0 | |||||||
| Total | $ | 32.0 | Total | $ | 32.0 | |||
a. What is the market debt-to-value ratio of the firm? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b. What is University’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
In: Finance
On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Assume the company has an expected return equal to the market return. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.)
| Date | Market Return (%) | Company Return (%) |
| Nov 7 | 1.5 | 1.1 |
| Nov 8 | 1.3 | 1.1 |
| Nov 9 | −1.2 | −0.2 |
| Nov 10 | −0.6 | −0.4 |
| Nov 11 | 2.3 | 1.0 |
| Nov 14 | −1.1 | 2.8 |
| Nov 15 | 0.1 | 0.1 |
| Nov 16 | 0.9 | 1.7 |
| Nov 17 | 1.2 | 0.6 |
| Nov 18 | −1.2 | 0.0 |
| Nov 21 | 1.3 | 0.2 |
|
In: Finance
An 80 kg man stands in a very strong wind moving at 15 m/s at torso height. As you know, he will need to lean in to the wind, and we can model the situation to see why. Assume that the man has a mass of 80 kg, with a center of gravity 1.0 m above the ground. The action of the wind on his torso, which we approximate as a cylinder 50 cm wide and 90 cm long centered 1.2 m above the ground, produces a force that tries to tip him over backward. To keep from falling over, he must lean forward.
Part A
What is the magnitude of the torque provided by the wind force? Take the pivot point at his feet. Assume that he is standing vertically. Assume that the air is at standard temperature and pressure.
Express your answer with the appropriate units.
For Part A. I tried 72.9 degrees, 85.02 degrees and 234.44 (I'm desperate)
Part B
At what angle to the vertical must the man lean to provide a gravitational torque that is equal to this torque due to the wind force?
Express your answer in degrees.
For part B. I already tried 5.25 degrees, 5.5 degrees and 6.5 degrees
I need help please!!!!
In: Physics
25
Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
| Expected Production | Direct Labor-Hours Per Unit | Total Direct Labor-Hours | |
| Product F9 | 400 | 2.0 | 800 |
| Product U4 | 200 | 1.0 | 200 |
| Total direct labor-hours | 1,000 | ||
The direct labor rate is $24.40 per DLH. The direct materials cost per unit is $258 for Product F9 and $215 for Product U4.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | |||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product F9 | Product U4 | Total | |
| Labor-related | DLHs | $ | 34,600 | 800 | 200 | 1,000 |
| Production orders | orders | 54,940 | 200 | 200 | 400 | |
| Order size | MHs | 111,950 | 3,400 | 2,900 | 6,300 | |
| $ | 201,490 | |||||
The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
In: Accounting
|
Weston Industries has a debt-equity ratio of 1.4. Its WACC is 8.4 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 21 percent. |
| a. |
What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c-1. | What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c-2. | What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c-3. | What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
In: Finance
You are trying to evaluate a private firm’s potential as a good investment opportunity. Your mentor at the investment bank you interned during the summer told you to collect information on comparable firms, which will help you find the WACC of the private firm. The private firm has ND/E ratio of 2. The risk free rate is 2%. Market risk premium is 5%. Cost of debt for the private firm is assumed is 6%. The tax rate is 50%. The following table lists the information you have gathered:
| Firm | Beta Equity | Equity (Million) | Debt (Million) | Cash (Million) |
|---|---|---|---|---|
| A | 1.3 | 20 | 11 | 6 |
| B | 1.1 | 15 | 8 | 2 |
| C | 0.9 | 10 | 6 | 3 |
| D | 0.8 | 5 | 7 | 2 |
What is the net debt for firm A?
Q2. Calculate the asset beta for firm D.
Q3. What is the average asset beta you should use combining all the comparable firms?
Q4. What is the equity beta for the private firm?
Q5. What is the cost of equity for the private firm? 0.0/1.0 point (graded) Input the cost of equity for the private firm. （use the result from problem 3） ______ %(keep two decimal points)
In: Finance
Ginny is endowed with $8million and is deciding whether to invest in a restaurant. Assume perfect capital markets with an interest rate of 6%.
Investment Option: 1, 2, 3, 4
Investment (millions): 2, 3, 4, 5
End of Year 1 Cash Flows (millions): 1.8, 4.3, 5.4, 5.2
End of Year 2 Cash Flows (millions): 1.8, 1.0, 1.4, 1.6
(i) List 4 perfect capital market assumptions.
(ii) Which investment option should Ginny choose? Why?
(iii) Which investment option can be eliminated from consideration? Why?
Ginny is actively pursuing another business venture as a ticket scalper. She estimates that for a $2 million investment in inventory she can resell her tickets for $6 million over the next two years (cash flows realized in exactly two years). Assume the same 6% interest rate.
(iv) What is the NPV of the Ticket Brokering venture?
(v) What is the new value of Ginny's Corporation?
(vi) Suppose Ginny does not have the $2million to start the new venture. Instead, she wants to raise equity capital by issuing 100,000 shares. What price will new investors be willing to pay?
In: Finance