Consider a project with a 4-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 13% and the tax rate is 34%.
You've collected the following estimates:
| Base case | Pessimistic | Optimistic | |
| Unit sales per year (Q) | 7,000 | 5,000 | 9,000 |
| Price per unit (P) | 50 | 40 | 60 |
| Variable cost per unit (VC) | 20 | 35 | 15 |
| Fixed costs per year (FC) | 30,000 | 50,000 | 20,000 |
Attempt 2/5 for 10 pts.
Part 1
What is the annual free cash flow in the base case?
Submit
Attempt 1/5 for 10 pts.
Part 2
What is the NPV in the base case?
Submit
Attempt 1/5 for 10 pts.
Part 3
What is the NPV in the pessimistic case?
Submit
Attempt 1/5 for 10 pts.
Part 4
What is the NPV in the optimistic case?
In: Finance
9717 shares of common stock outstanding at the beginning of the year. Net income was $384,717 . No dividends were paid this year nor last year. On july, the company purchased 2,000 shares of its common stock and held it in treasury. There was a 2 for 1 stock split that occurred on common stock on Dec. 1. The tax rate is 30%. A $1,500,000, 5% nonconvertible bond was issued June 30 of the current year at par value. The company has 2,000 shares outstanding of $100 par value 5% convertible Preferred stock (cumulative and non-participating). The stock was issued at $125 a share on April 1 this year and has current market price of $145 at year-end. One share of preferred stock can convert into 2 shares of common stock, none were converted.
1 Calculate Basic EPS.
2, Calculate fully diluted EPS Is Fully Dilutes EPS a required?
In: Accounting
Write a java program MyCalendar that outputs a monthly calendar
for a given month and year.
the output should be looks like this one at the bottom:( I don't
know why it doesn't show right but the first day of the month is
not Sunday it starts from Wednesday)
F. Last’s My Calendar
Enter month year? 10 2019
10/2019
Sun Mon Tue Wed Thu Fri Sat
---------------------------------
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
In: Computer Science
Pearl Corp. is expected to have an EBIT of $2,200,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $95,000, and $135,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $11,500,000 in debt and 950,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The company’s WACC is 8.7 percent and the tax rate is 24 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.)
In: Finance
ABCDEF Corp. currently pays $3.80 in dividend as of this year. ABCDEF’s dividends will grow by 4.1% each year for next 15 years, and then grow by 3.8% each year afterward. What’ the present value of the firm’ tock given this information assuming that the required rate of return for the firm’ industry is 10.1%?
In: Finance
Compute the monthly payments on a 3-year lease for a $26,775 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.7%.
In: Finance
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
In: Accounting
Pearl Corp. is expected to have an EBIT of $2,900,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $160,000, $130,000, and $170,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $15,000,000 in debt and 1,300,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.5 percent and the tax rate is 21 percent
What is the price per share of the company's stock
Share price?
In: Finance
Consider a project with an initial investment of $60,000, a 6 year usefule life (and study period), and a $10,000 salvage value. You expect an annual net revenue of $15,000 (before tax), a MARR before tax of 15.3%, and an effective tax rate of 35%. The capital equipment is to be depreciated using MACRS GDS and a 3 year class life. Develop the after-tax cash flows and draw the cash flow diagram
In: Finance
A stock pays an annual dividend of $8.4 in one year time. The dividend is expected to increase by 7% per year (roughly the inflation rate) forever. The price of the stock is $73 per share. At what cost of capital is this stock priced?
Select one:
a. The cost of capital is 18.51%
b. The cost of capital is 19.51%
c. The cost of capital is 17.51%
d. The cost of capital is 19.01%
In: Finance