Ward Corp. is expected to have an EBIT of $2,750,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $182,000, $119,000, and $132,000,
respectively. All are expected to grow at 19 percent per year for
four years. The company currently has $21,500,000 in debt and
820,000 shares outstanding. After Year 5, the adjusted cash flow
from assets is expected to grow at 3.0 percent indefinitely. The
company’s WACC is 9.3 percent and the tax rate is 35 percent.
What is the price per share of the company's stock? (Do not
round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Share price
$
In: Finance
A 20 year annuity pays 1600 per month at the end of each month. if the discount rate is 10% compounded monthly for the first nine years and 8% compounded monthly thereafter, what is the present value of the annuity?
In: Finance
Derek will deposit $2,480.00 per year for 21.00 years into an account that earns 16.00%, The first deposit is made next year. How much will be in the account 39.00 years from today?
Submit
Answer format: Currency: Round to: 2 decimal places.
unanswered
not_submitted
#2
Derek will deposit $2,323.00 per year for 5.00 years into an account that earns 5.00%. The first deposit is made today. How much will be in the account 5.0 years from today? Note that he makes 5.0 total deposits.
Submit
Answer format: Currency: Round to: 2 decimal places.
unanswered
not_submitted
#3
Derek will deposit $1,891.00 per year into an account starting today and ending in year 8.00. The account that earns 14.00%. How much will be in the account 8.0 years from today?
Submit
Answer format: Currency: Round to: 2 decimal places.
unanswered
not_submitted
#4
Derek will deposit $7,984.00 per year for 11.00 years into an account that earns 8.00%, The first deposit is made next year. How much will be in the account 44.00 years from today?
Submit
Answer format: Currency: Round to: 2 decimal places.
unanswered
not_submitted
#5
Derek will deposit $5,819.00 per year for 17.00 years into an account that earns 15.00%, The first deposit is made next year. He has $16,600.00 in his account today. How much will be in the account 36.00 years from today?
Submit
Answer format: Currency: Round to: 2 decimal places.
In: Finance
Below is a table for the present value of $1 at compound
interest.
| Year | 6% | 10% | 12% |
| 1 | 0.943 | 0.909 | 0.893 |
| 2 | 0.890 | 0.826 | 0.797 |
| 3 | 0.840 | 0.751 | 0.712 |
| 4 | 0.792 | 0.683 | 0.636 |
| 5 | 0.747 | 0.621 | 0.567 |
Below is a table for the present value of an annuity of $1 at
compound interest.
| Year | 6% | 10% | 12% |
| 1 | 0.943 | 0.909 | 0.893 |
| 2 | 1.833 | 1.736 | 1.690 |
| 3 | 2.673 | 2.487 | 2.402 |
| 4 | 3.465 | 3.170 | 3.037 |
| 5 | 4.212 | 3.791 | 3.605 |
Using the tables above, if an investment is made now for $20,000
that will generate a cash inflow of $7,000 a year for the next 4
years, what would be the present value of the investment cash
inflows, assuming an earnings rate of 12%?
In: Accounting
At the end of the year ABC Company reported long-term debt of $3,974 million and the current portion of long-term debt of $219 million. At the end of the prior year they reported long-term debt of $3,503 million and the current portion of long-term debt of $268 million. How much (in $ millions) did the company receive from issuing new long-term debt or pay off any existing debt? If they issued debt, enter your answer as a positive number; if they repaid debt, be certain to place a negative sign in front of your answer. (please show all steps)
In: Finance
Midlands Inc. had a bad year in 2019. For the first time in its
history, it operated at a loss. The company’s income statement
showed the following results from selling 80,000 units of product:
net sales $1,600,000; total costs and expenses $1,824,800; and net
loss $224,800. Costs and expenses consisted of the
following.
|
Total |
Variable |
Fixed |
||||
|---|---|---|---|---|---|---|
| Cost of goods sold | $1,160,000 | $652,000 | $508,000 | |||
| Selling expenses | 515,800 | 91,000 | 424,800 | |||
| Administrative expenses | 149,000 | 57,000 | 92,000 | |||
| $1,824,800 | $800,000 | $1,024,800 |
Management is considering the following independent alternatives
for 2020.
| 1. | Increase unit selling price 25% with no change in costs and expenses. | |
| 2. | Change the compensation of salespersons from fixed annual salaries totaling $195,000 to total salaries of $41,985 plus a 5% commission on net sales. | |
| 3. | Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. |
(a) Compute the break-even point in dollars for
2019. (Round contribution margin ratio to 4 decimal
places e.g. 0.2512 and final answer to 0 decimal places, e.g.
2,510.)
| Break-even point |
$Enter the break-even point in dollars rounded to 0 decimal places |
(b) Compute the break-even point in dollars under
each of the alternative courses of action for 2020.
(Round contribution margin ratio to 3 decimal places
e.g. 0.251 and final answers to 0 decimal places, e.g.
2,510.)
|
Break-even point |
||||
|---|---|---|---|---|
| 1. | Increase selling price |
$Enter a dollar amount |
||
| 2. | Change compensation |
$Enter a dollar amount |
||
| 3. | Purchase machinery |
$Enter a dollar amount |
In: Accounting
At the beginning of the year, long-term debt of Cooper Tires is $2,459 and total debt is $3,018. At the end of the year, long-term debt is $2,573 and total debt is $3,319. The interest paid is $129. What is the amount of the cash flow to creditors?
|
-$31 |
||
|
$23 |
||
|
-$18 |
||
|
$15 |
||
|
-$27 |
In: Finance
If you invest
$2589 for 6 years at 9.8% per year, and then the money stays invested and earns 6.5% per year for
3 more years, what would be your annual (average) rate of return for the entire 9 years? (In percent, rounded to 3 decimals.)
In: Finance
What is the present value of an annuity that pays $6,500 per year for 9 years with a 11% interest rate with the first payment TODAY.
In: Finance
Fluor Enterprise is considering a 3-year project with an initial cost of $336,000. The project will not directly produce any sales but will reduce operating costs by $150,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are .1429, .2449, .1749, .1249, .0893, .0892, .0893, and .0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $151,000. The tax rate is 25 percent and the required return is 12 percent. An extra $22,000 of inventory will be required for the life of the project. What is the total cash flow for Year 3? $307,512.63 $299,174.80 $290,413.64 $313,416.76 $382,266.33
In: Finance