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Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .75. It’s considering building a new $66 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.8 million in perpetuity. The company raises all equity from outside financing. There are three financing options: |
| 1. |
A new issue of common stock: The flotation costs of the new common stock would be 7.4 percent of the amount raised. The required return on the company’s new equity is 13 percent. |
| 2. |
A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.9 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 7 percent, they will sell at par. |
| 3. |
Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .20. (Assume there is no difference between the pretax and aftertax accounts payable cost.) |
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What is the NPV of the new plant? Assume that PC has a 24 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.) |
In: Finance
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Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .65. It’s considering building a new $74 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $8.9 million in perpetuity. The company raises all equity from outside financing. There are three financing options: |
| 1. |
A new issue of common stock: The flotation costs of the new common stock would be 6.5 percent of the amount raised. The required return on the company’s new equity is 14 percent. |
| 2. |
A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.8 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 7 percent, they will sell at par. |
| 3. |
Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .15. (Assume there is no difference between the pretax and aftertax accounts payable cost.) |
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What is the NPV of the new plant? Assume that PC has a 22 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.) |
In: Finance
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Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .85. It’s considering building a new $62 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.4 million in perpetuity. The company raises all equity from outside financing. There are three financing options: |
| 1. |
A new issue of common stock: The flotation costs of the new common stock would be 6.9 percent of the amount raised. The required return on the company’s new equity is 14 percent. |
| 2. |
A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.5 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 7 percent, they will sell at par. |
| 3. |
Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .15. (Assume there is no difference between the pretax and aftertax accounts payable cost.) |
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What is the NPV of the new plant? Assume that PC has a 25 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.) |
In: Finance
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Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .8. It’s considering building a new $72 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $8.4 million in perpetuity. The company raises all equity from outside financing. There are three financing options: |
| 1. |
A new issue of common stock: The flotation costs of the new common stock would be 6.7 percent of the amount raised. The required return on the company’s new equity is 15 percent. |
| 2. |
A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.6 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 6 percent, they will sell at par. |
| 3. |
Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .20. (Assume there is no difference between the pretax and aftertax accounts payable cost.) |
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What is the NPV of the new plant? Assume that PC has a 25 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.) |
In: Finance
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Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .65. It’s considering building a new $64 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.6 million in perpetuity. The company raises all equity from outside financing. There are three financing options: |
| 1. |
A new issue of common stock: The flotation costs of the new common stock would be 7.2 percent of the amount raised. The required return on the company’s new equity is 15 percent. |
| 2. |
A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.7 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 5 percent, they will sell at par. |
| 3. |
Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .10. (Assume there is no difference between the pretax and aftertax accounts payable cost.) |
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What is the NPV of the new plant? Assume that PC has a 22 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.) |
please give me the right answer
Thanks..
In: Finance
Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .7. It’s considering building a new $70 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.3 million in perpetuity. The company raises all equity from outside financing. There are three financing options: 1. A new issue of common stock: The flotation costs of the new common stock would be 6.9 percent of the amount raised. The required return on the company’s new equity is 13 percent. 2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.4 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 4 percent, they will sell at par. 3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .10. (Assume there is no difference between the pretax and aftertax accounts payable cost.) What is the NPV of the new plant? Assume that PC has a 23 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
In: Finance
Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .7. It’s considering building a new $70 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.3 million in perpetuity. The company raises all equity from outside financing. There are three financing options:
1. A new issue of common stock: The flotation costs of the new common stock would be 6.9 percent of the amount raised. The required return on the company’s new equity is 13 percent.
2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.4 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 4 percent, they will sell at par.
3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .10. (Assume there is no difference between the pretax and aftertax accounts payable cost.)
What is the NPV of the new plant? Assume that PC has a 23 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
In: Finance
Step 1
Picture yourself as a Senior Product Manager in your favorite industry.
Step 2
Create a post describing your new product idea.
In: Operations Management
Step 1
Picture yourself as a Senior Product Manager in your favorite industry.This could be high-tech, financial services, consumer products, electronics, automobiles, restaurants, food services, etc.Choose an industry with which you are familiar.Sit quietly and brainstorm with yourself about a possible new product idea.This does not have to be completely original. It could be as simple as a new flavor of ice cream, a new feature on a hair dryer or a new color iPod/iPad.
Step 2
Create a post describing your new product idea.Be as specific as possible and provide as much detail as you can so that other's reading your post can understand your idea in sufficient detail so as to comment on it. Be sure to state who the product idea is targeted to, that is, who you expect to buy it.How will the new product compare and compete with similar, currently available products? How can labeling and package design help?Consider the labeling for the new product idea. What restrictions and legal requirements have to be fulfilled?Consider the packaging for the new product ideas. If applicable, what sizes will be available? How will the packaging help the product to stand out? How will the packaging help prevent or deter theft?Feel free to attach images to your post, or include links to similar products that might have similar characteristics to the new one you are developing.
In: Operations Management
Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .7. It’s considering building a new $75 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $8.3 million in perpetuity. The company raises all equity from outside financing. There are three financing options: 1. A new issue of common stock: The flotation costs of the new common stock would be 6.4 percent of the amount raised. The required return on the company’s new equity is 13 percent. 2. A new issue of 20-year bonds: The flotation costs of the new bonds would be 2.9 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 6 percent, they will sell at par. 3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .20. (Assume there is no difference between the pretax and aftertax accounts payable cost.) What is the NPV of the new plant? Assume that PC has a 23 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
In: Finance