In 2012, the Pandora Box Company made a rights issue at €8 a share of one new share for every two shares held. Before the issue there were 9.3 million shares outstanding and the share price was €10.
Now suppose that the company had decided to issue the new stock at €7 instead of €8. e. How many new shares would the firm have needed to sell to raise the same sum of money? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
f. What would be the new value of the opportunity given to shareholders to buy one new share for less than the market price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
g. What would be the prospective stock price after the issue? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
h. Now how far could the total value of the company fall before shareholders would be unwilling to take up their rights? (Do not round intermediate calculations. Enter your answer in millions of euros rounded to 1 decimal place.)
In: Finance
Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 60; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations.
********PLEASE LABEL ALL 5ANSWERS VERY CLEARLY AND I WILL LEAVE A GOOD REVIEW. ALL PARTS ARE FOR THE SAME QUESTION********
In: Finance
Refer to the accompanying data set of mean drive-through service times at dinner in seconds at two fast food restaurants. Construct a 95% confidence interval estimate of the mean drive-through service time for Restaurant X at dinner; then do the same for Restaurant Y. Compare the results.
Service Times (seconds)
Restaurant X Restaurant Y
82 102
121 130
117 152
144 111
269 173
184 135
127 107
154 120
161 128
214 126
337 132
305 132
177 230
116 212
153 292
152 128
93 96
235 135
237 243
190 142
156 147
204 203
166 152
121 142
68 134
206 146
178 159
121 136
142 166
177 138
193 239
194 235
231 252
191 239
349 236
302 165
214 82
193 106
182 56
191 173
103 80
144 149
179 139
160 97
174 130
158 146
168 129
123 183
138 154
309 130
In: Statistics and Probability
Check only the correction statements below. Check the incorrect statements will result in losing a half of the points for a correct statement. ABC Inc. plans to expand the production by replacing the existing capital equipment. The following information is available.
|
Last period |
This period |
|
|
Production (units) |
3,000 |
3,500 |
|
materials (pounds) |
3,000 |
3,000 |
|
cost per unit |
$0.80 |
$0.65 |
|
labor (hrs) |
400 |
425 |
|
labor rate/hr |
$16.00 |
$16.00 |
|
capital equipment and its maintenance |
$12,000 |
$15,000 |
|
capital equipment fully depreciated, in periods |
4 |
4 |
|
energy, units |
6,000 |
5,000 |
|
energy rate |
$0.15 |
$0.15 |
|
other overhead (is part of fixed costs) |
$4,000 |
$4,000 |
|
assume that the prices that market can accept for both periods. The market demand for the company's products is what the company can sell. |
$8.00 |
$8.50 |
| a. |
% change in contribution, this period compared with last period is (0.21) |
|
| b. |
unit cost of materials, this period, is not $.056. |
|
| c. |
% cost change per unit output between the two periods is 0.11. |
|
| d. |
Total annual cost, last period, was $5.57. |
|
| e. |
breakeven point for last period was 1,340. |
|
| f. |
total annual variable cost, this period, is $2.71. |
|
| g. |
unit cost of energy, last period, was $900. |
|
| h. |
unit cost of labor, last period, was $1.94. |
|
| i. |
unit variable cost, this period, is $2.71. |
|
| j. |
unit cost of energy, this period, is not $750. |
|
| k. |
% cost change in labor cost per unit output between the two periods is not 0.09. |
|
| l. |
% cost change in energy cost per unit output between the two periods is (0.29). |
|
| m. |
unit variable cost, last period, was $9,700. |
|
| n. |
unit cost of materials, last period, was $0.56. |
|
| o. |
breakeven point for this period is not $1,340. |
|
| p. |
% cost change in material cost per unit output between the two periods is not 0.30. |
|
| q. |
unit cost of labor, this period, is $1.94. |
|
| r. |
total annual cost, this period, is $4.93. |
|
| s. |
total annual variable cost, last period, was not $3.23. |
|
| t. |
% cost change in capital cost per unit output between the two periods is 0.07. |
In: Accounting
|
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
|
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In: Finance
| eBook Problem Walk-Through
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
|
In: Finance
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
| Project B | -$405 | $132 | $132 | $132 | $132 | $132 | $132 | $0 |
What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
Project A: $
Project B: $
What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
From your answers to parts a-c, which project would be selected?
-Select-Project AProject BItem 7
If the WACC was 18%, which project would be selected?
-Select-Project AProject BItem 8
Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
| Discount Rate | NPV Project A | NPV Project B |
| 0% | $ | $ |
| 5 | ||
| 10 | ||
| 12 | ||
| 15 | ||
| 18.1 | ||
| 23.33 |
Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.
%
What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
please write answers easy to understand
In: Finance
A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
| Project B | -$400 | $135 | $135 | $135 | $135 | $135 | $135 | $0 |
What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
Project A: $
Project B: $
What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
From your answers to parts a-c, which project would be selected?
-Select-Project AProject BItem 7
If the WACC was 18%, which project would be selected?
-Select-Project AProject BItem 8
Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
| Discount Rate | NPV Project A | NPV Project B |
| 0% | $ | $ |
| 5 | ||
| 10 | ||
| 12 | ||
| 15 | ||
| 18.1 | ||
| 24.83 |
Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.
%
What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
In: Finance
A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
| Project B | -$405 | $135 | $135 | $135 | $135 | $135 | $135 | $0 |
What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
Project A: $
Project B: $
What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
From your answers to parts a-c, which project would be selected?
-Select-Project AProject BItem 7
If the WACC was 18%, which project would be selected?
-Select-Project AProject BItem 8
Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
| Discount Rate | NPV Project A | NPV Project B |
| 0% | $ | $ |
| 5 | ||
| 10 | ||
| 12 | ||
| 15 | ||
| 18.1 | ||
| 24.29 |
Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.
%
What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
In: Finance
A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
| Project B | -$405 | $131 | $131 | $131 | $131 | $131 | $131 | $0 |
What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
Project A: $
Project B: $
What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
From your answers to parts a-c, which project would be selected?
-Select-Project AProject BItem 7
If the WACC was 18%, which project would be selected?
-Select-Project AProject BItem 8
Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
| Discount Rate | NPV Project A | NPV Project B |
| 0% | $ | $ |
| 5 | ||
| 10 | ||
| 12 | ||
| 15 | ||
| 18.1 | ||
| 23.01 |
Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.
%
What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.
Project A: %
Project B: %
In: Finance